A front page article in the Wall Street Journal on Tuesday explored investors’ concerns over Kevin Plank’s dual role as CEO and chairman of Under Armour and as head of his investment firm, Plank Industries.
Plank’s “multitasking this year has been a big source of discussion, investors are concerned,” Jim Duffy, an analyst at Stifel, told the WSJ. “They want to know he isn’t distracted, that he it isn’t taking away from appropriately running Under Armor.”
Plank Industries was founded in 2012 to manage Plank’s investments, which include Sagamore Farm in rural Maryland, which breeds race horses. Plank has also invested in a whiskey distillery and his investment firm last year took on a $5.5 billion redevelopment in Baltimore’s Convington neighborhood that will fit new headquarters for Under Armour.
The concerns come as Under Armour recently showed its first-even decline in quarterly sales and reported two straight quarters of losses. The report noted that Patrik Frisk, an industry veteran, was hired as president in June and is now handling many day-to-day duties. Nearly 300 employees have been laid off this year and several senior leaders have left the company.
Plank told the WSJ in an interview earlier this year that there’s no link between his outside investments and Under Armour’s recent struggles and that he remains committed to his company. Said Plank, “My job is running Under Armor period.”
Photo courtesy Under Armour
