‘This Is Not the Culture We Envision’

How did Under Armour stock fare after a new report about athlete recruitment tactics?


3 min read

Opinions expressed by Entrepreneur contributors are their own.


No more strip clubs on the company dime at Under Armour Inc.

The Wall Street Journal reported that the clothing company had recently changed policy about reimbursing executives for nights out at strip clubs — often with athletes. In a letter to employees after the article ran, CEO Kevin Plank, who reportedly went on some of these outings, wrote, “This is not the culture we envision for Under Armour.” The company’s #MeToo moment didn’t sit well with investors. The stock was down 2.88 percent, one of the larger declines on the Entrepreneur Index™ today.

The biggest decline on the index was registered by another clothing maker, Ralph Lauren. The company beat earnings and revenue estimates with its second quarter results reported this morning, and even raised full year forward revenue guidance — albeit to a flat outlook. The stock fell 6.59 percent. Ralph Lauren’s shares are still up 23 percent this year and 52 percent in the last twelve months.

The stock market as a whole was rather slow, as Americans head to the polls for mid-term elections today. The major indexes traded within a narrow band and ended the day with small gains after a late rally. The Entrepreneur Index™ was up 0.6 percent on the day, with only five out of 60 stocks on the index rising or falling more than 2 percent.

Investors hope history repeats itself. After every one of the 18 mid-term elections since 1946, the S&P 500 index was up a year later, with an average return of 16.7 percent, according to S&P Global data. That said, we are ten years into this bull market, interest rates are rising and, depending on election results, we could have a politically raucous two years ahead of us. History could be challenged this time around.

The biggest gain on the Entrepreneur Index™ today was posted by online travel platform, TripAdvisor Inc. For no obvious reason, the stock spiked 7.06 percent and is now up 65 percent on the year. TripAdvisor will report third quarter earnings on Thursday.

Technology stocks were mixed on the day, with none on the Entrepreneur Index™ — other than TripAdvisor — posting a more than 2 percent gain. Netflix (-1.46 percent), salesforce.com (-1.1 percent) and Verisign Inc. (2.27 percent) had the biggest declines in the sector.

Automotive manufacturers PACCAR Inc. and O’Reilly Auto Parts were up 1.54 percent and 1.92 percent respectively. Fedex Corp. was also up 1.87 percent. The package delivery business announced yesterday that it would increase shipping rates in the new year.

Residential-focused real estate investment trust Apartment Investment and Management Co. had the biggest gain among the real estate investment trusts on the index, rising 2.26 percent.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.

Source link

more recommended stories

  • How to Build Philanthropy Into Your Budget — Even If You’re Not Google

    Big-name companies like Google are doubling.

  • 10 Questions to Ask Before Committing to a Business Partner

    If you can get someone to.

  • Model 3 Gets Bad Report Card, Leading to Drop for Tesla Stock

    Plus, more signs of a sputtering.

  • 4 Ways to Successfully Turn Your Day Job into a #SideHustle That Earns You #PassiveIncome from #ThePowerofPassiveIncome

    Find out which key moves you.

  • J.M. Smucker Is Up, But Rest of Stock Market Soft After Minutes of Last Fed Meeting Released

    The stock market wasn’t sure what.

  • The 10 Most Reliable Ways to Fund a Startup

    Every funding decision is a complex.

  • The Most Important Career Lessons Are the Ones You Learn From Your Mistakes

    Instead of being embarrassed by your.

  • 7 Steps to a Perfectly Written Business Plan

    February 20, 2019 7 min read.

  • Must-Reads for List-Makers, Disrupters, and Social Entrepreneurs

    Inspired by our own personal goals.

  • 3 Fast Ways To Get Good Press

    Whether you’re a publicist or a.

  • 9 Questions to Ask Candidates’ References

    February 18, 2019 5 min read.

  • Are Your Goals Too Small? Here’s How to Know.

    See your life transform by setting.

  • 5 Partnership Lessons From Bill Belichick and Tom Brady

    Neither would be wearing so many.

  • Learning From Kevin Hart’s Social Media Mistakes

    He lost his gig at the.

  • Breaking Through on the PGA Tour After 187 Tries

    PGA Tour player Ken Duke shares.

  • Learn How to Practice Mindfulness at Work for Less Than $40

    Make the ancient, stress-relieving discipline more.

  • Why Your Next Startup Should Focus on Healthcare

    Breakdowns exist in the healthcare system,.

  • Market Up as Government Shutdown Averted, but FAANG Stocks Still Down

    The government shutdown drama is over.

  • 9 Business Ideas Under $1,000 You Can Run From Anywhere

    February 15, 2019 11 min read.

  • How to Make Your Wealth Last for Generations

    Hone your financial literacy and sustain.

  • Bed Bath & Beyond (Up 49 Percent This Year) Continues to Rise, but the Market Falls Flat

    Stocks were not feeling the love.

  • This Startup Raised $30 Million. Now, Its Founder Is Accused of Fraud.

    This promising Mexican startup closed its.

  • Corporate America Needs Understand These 4 Keys to Working With Millennials

    Millennials have a bad reputation that.

  • Government Shutdown and Trade Talks Still in Limbo but Market Up Slightly

    The stock market didn’t seem overly.

  • Jack Dorsey Picks Elon Musk as ‘Most Exciting’ User, Amazon Buys Eero and Prices Spike at Whole Foods (60-Second Video)

    Here are three things entrepreneurs should.

  • This CEO Says That Second-Guessing Your Business Is Natural

    The big decision for this Canadian.

  • The Government Shutdown Wasn’t So Bad for the Stock Market — But Avoiding a Shutdown Would Be Even Better

    The Entrepreneur Index™ was up big.

  • Mars Trip Could Cost You Less Than $500K or Even $100K

    The prices would be ‘low enough.

  • Chipotle Shoots for the Stars, Hires Oscar Winner to Produce Ad

    The burrito chain the had biggest.

  • Could These Companies Be the Next $1 Billion Unicorns?

    A new study looks ahead at.

  • Stop Hitting the Snooze Button and Start Intentionally Building Your Life and Business

    Don’t beat yourself up for hitting.

  • Get Exclusive Access to Silicon Valley Trailblazers for Less Than $10

    The CEOs of Redfin, Nextdoor, SurveyMonkey,.