Under Armour CEO on Reimbursing Visits to Strip Clubs: 'This Is Not the Culture We Envision'
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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.