06:21 AM EDT, 03/14/2024 (MT Newswires) -- Under Armour ( UAA ) made a couple of leadership changes late Wednesday with founder Kevin Plank returning as chief executive of the sportswear maker, after stepping aside from the role in 2019.

Plank, who founded the company in 1996, will take over from Stephanie Linnartz, effective April 1. Linnartz, a former executive at Marriott International (MAR), joined Under Armour ( UAA ) as CEO in February 2023 and will remain an adviser to the company through the end of next month.

"As the company continues to navigate several post-pandemic consumer, industry, and brand-specific factors, we are working hard to reconstitute our strengths and make thoughtful, balanced business decisions to drive enduring success for athletes, customers and shareholders," Plank said in a statement.

Plank will also transition from his role as the sportswear maker's executive chair, which he took up in January 2020, the company said. Mohamed A. El-Erian, an independent director on Under Armour's ( UAA ) board since 2018, will become nonexecutive chair with Plank remaining as a director.

"With Kevin's vision and drive serving as critical components, board members and I look forward to working closely with him and the Under Armour ( UAA ) leadership team to unleash shareholder value and drive the company forward," according to El-Erian.

The senior management shuffle is unlikely to boost investor sentiment, with the company changing its chief executive three times in the four-year gap between Plank's two tenures, Wedbush Securities said in a late Wednesday client note. The moves bring "a layer of inconsistency and uncertainty to the story that investors don't really want to see," analysts Tom Nikic and Matt Quigley wrote.

Shares of the company dropped 4.4% in premarket trading Thursday.

However, the brokerage expects consistency in the CEO seat going forward, as it believes Plank has been brought back for the long haul and not to keep "the seat warm" for the right successor. Despite the change at the top, the company is also anticipated to continue with Linnartz's strategy to strengthen brand performance, elevate products and boost US sales, the Wedbush analysts said.

Under Armour ( UAA ) said last month that it forecasts revenue for fiscal 2024 to decline by 3% to 4% versus its previous outlook for a 2% to 4% decrease. At the same time, it lifted its per-share adjusted earnings guidance for the full year and sees gross margin expanding more than its prior estimate.

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