Under Armour Divides Leadership Posts
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Wednesday, July 2, 2008
Sports apparel company Under Armour said yesterday that it is splitting the jobs of president and chief executive to better handle its rapid growth.
The Baltimore company appointed David McCreight, former president of clothing retailer Lands' End, as president. He will succeed founder Kevin Plank, who will continue as chairman and chief executive.
McCreight, who will report to Plank, will manage the front end of the business, including sales and marketing. Plank will focus on driving domestic and global growth and coordinating sales and marketing with financing and supply chain management, he said.
Under Armour's growth spurred the decision to bring in new leadership. "We're at the point where we're becoming a larger business. So it's time," Plank said. "David's been critical in transitioning Lands' End from a classic old cataloguer to a multinational direct and wholesale business."
Under Armour revenue grew 27 percent in the first quarter of 2008. Profit fell 71 percent as the company shelled out money for new outlet stores and for marketing its new cross-trainers.
Plank, a former University of Maryland football player, started the company in 1996 to develop a shirt that wouldn't absorb sweat. The company has since expanded its distribution channels and product lines. It expects to add five or six outlet stores to its current 19 by the end of the year and opened a second nonoutlet store in Chicago in May.
Under Armour also released its first noncleated footwear in May, launching the New Prototype, a line of cross-trainers. Early indicators of sales have been strong. "It's going quite well. Retailers say that it's met or exceeded expectations," said Matt Powell, analyst at SportsOneSource, an industry research firm. "They're taking market share from others."
Powell said the company's clothing sales also remain strong, even in a slowing economy.
"The consumer is voting," Plank said. "We feel very good about the way the consumer is casting that vote today."
Investors' votes aren't quite so positive; the company's shares have slid 41 percent this year. Shares closed up 0.4 percent yesterday, at $25.75.
