The "contrast in fortunes" of Under Armour and private investment firm Plank Industries, each controlled by UA Founder, Chair & CEO KEVIN PLANK "prompts the question of how well an executive can juggle corporate and personal projects," according to a front-page piece by Sara Germano of the WALL STREET JOURNAL. This year, UA "posted two consecutive quarters of net losses, including its first-ever quarterly sales decline, laid off nearly 300 employees and lost several top executives." Entering the final week of the year, the stock had "dropped about 45%, erasing more" than $5B in market value. Meanwhile, rival Nike "gained almost 25% and the S&P 500 nearly 20%." But if it was a "tough year to be CEO" of a sportswear company, Plank's other business venture "was on a roll." Plank Industries in '17 "opened a boutique hotel and a whiskey distillery and secured" an additional $233M in funding for a multibillion-dollar real-estate project in Baltimore. Plank said that there is "no link between his involvement in Plank Industries and Under Armour’s troubles." He said that he is "focused on turning around Under Armour and spends only a few hours a week on his private investments." Earlier this year, Plank said, "My job is running Under Armour, period." In June, Plank hired UA President & COO PATRIK FRISK to "help him run" the company. Frisk replaced several senior execs, and sources said that he now is "handling many day-to-day duties." Frisk also has "taken on a more-public leadership role, joining Under Armour’s earnings calls and, during this month’s town hall, delivering remarks to employees about the future of the company." In '16, Plank "unveiled Plank Industries’ biggest project" -- a $5.5B redevelopment of a 235-acre industrial peninsula in Baltimore’s Port Covington neighborhood that "would create a mini-city" including a new HQ for UA. He later secured $660M in "financing from the city." Plank and Plank Industries CEO TOM GEDDES said that the project, like Plank’s other personal investments, will "benefit the Under Armour brand." It "isn’t clear how profitable the various other investments are" (WALL STREET JOURNAL, 12/26).
