Under Armour came under fire this week after founder, Kevin Plank, declared his support for President Donald Trump and now we are seeing a shift in the company’s stock.
Several of the company’s sponsored athletes spoke out in opposition to Plank’s remarks, including Misty Copeland, Steph Curry and Dwayne Johnson — but did the celebrity reaction cause a decline in the sports clothing and accessories company’s shares?
Under Armour has been a struggle stock for the past month, but after Plank suggested during an interview with CNBC that The Donald is “a real asset for the country” the shares began to fluctuate.
Following Tuesday’s remarks, shares took a dive, but gradually increased. However, after Copeland’s social media tirade on Thursday, shares took another plunge. As of Friday morning 8:48 PST, the stock appeared to be trending down -1.66%.
The future of UA’s stock is unclear, but if it’s anything like Nordstrom, we might see some drastic changes.
While UA has seen a gradual decline in stock following celebrity disapproval, Nordstrom saw a different movement after a tweet shared by the president himself.
Nordstrom announced last week that they’ve decided to drop the clothing line of Trump’s daughter, Ivanka Trump because of declining sales. “Over the past year, and particularly in the last half of 2016, sales of the brand have steadily declined to the point where it didn’t make good business sense for us to continue with the line for now,” the luxury chain said.
Blasting the company for their business decision, Trump tweeted on Wednesday: “My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person — always pushing me to do the right thing! Terrible!”
But the tweet did the unexpected. While the president probably anticipated the company’s stock to dive, it did the opposite. The social media remark led to a slight drop in stock but quickly jumped back up by day’s end, rising 4 percent.