Tesla Execs Make a “Break” For It; Aeropostale is Down and Out, Almost; Two Executives Are So Over Under Armour

Awkward…

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Image courtesy of cooldesign/FreeDigitalPhotos.net

Two major executives at Tesla are making a break for it just as the car company is about to (finally) unveil its Model 3. Today’s departure announcements particularly unnerved Wall Street, sending Tesla’s stock down 4% on the news. One of the departing execs is Greg Reichow, the global VP of productions, who was also one of the highest paid executives in the company, taking home a package reportedly valued at $6.4 million. Reichow, who arrived at Tesla in 2011, will graciously stay on until his replacement is properly ensconced in his or her ergonomically designed executive desk chair. But what’s weird is that Reichow’s departure is being called a leave of absence, a classification that doesn’t typically necessitate successors. Also making a not-so-fond farewell is VP of manufacturing, John Ensign. Apparently the executive exits have to do with delays and other assorted hiccups that have been plaguing Tesla. But that’s not the official word coming out of the company. What is official is that a whopping five vice presidents have left Tesla just this year and mind you, it’s only May. In the meantime, Tesla’s Elon Musk is calling these exits a “well earned break.” Hmmm. Not the way I would have phrased it.

Market slap…

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Image courtesy of cooldesign/FreeDigitalPhotos.net

Malls all over the United States and Canada are about to lose a neighbor. Aeropostale, purveyor of apparel that appealed primarily to teenagers, is closing over 100 of its stores for being not profitable. In fact, those stores were so not profitable that the company lost $17 million from them just in 2015. But at least the company expects to make $21 million in revenue from liquidation, which should last from six to eight weeks. No worries if you miss your Aeropostale location as there will still be over 600 left from which to shop. Just don’t bother shopping in Alaska, or Hawaii, or Times Square in New York, or…well, you might want to check before you head out to see if your preferred Aeropostale location is still standing. It may be hard to believe now, but once upon a time, Aeropostale’s market cap was worth $2.6 billion, with shares above $30. Those days, however, are long gone as its market cap might be scratching at $2 million and the stock has been delisted from the New York Stock Exchange after trading under 3 cents this week.

A chink in the armor…

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Image courtesy of cooldesign/FreeDigitalPhotos.net

Under Armour has its own share of departures, bidding a (fond?) farewell to Chief Merchandising Officer, Henry Stafford, and Chief Digital Officer Robin Thurston. The company, who has endorsement deals with NBA’s Stephen Curry and golfer Jordan Spieth, generated $4 billion in sales last year, yet news of these departures spooked investors enough to send the stock down 6%. After all, a Chief Merchandising Officer’s role is integral to a brand that sells footwear and apparel considering their vision sets the look and feel. No minor details. Apparel, by the way, is Under Armour’s largest category. Just saying. Thurston had been with the company since 2013, when the company he co-founded, MapMyFitness, was acquired by Under Armour to the tune of $150 million. The company says that it’s just a coincidence that the two executives are making a break for it at the same time, at least that’s what a company memo said. But it’s a good thing that those two executives also have non-compete clauses in their contracts because it would be kind of awkward if they found themselves working for the competition. Well, awkward for Under Armour, I suppose.

William Shatner Wants $30 Billion for Water; Harley-Davidson’s Wall Street Hits and Misses; Under Armour Needs to Bulk Up Projections

Rain rain don’t go away…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Leave it to Star Trek legend William Shatner to take California’s drought emergency straight to Kickstarter. The 84 year old actor and Priceline shiller wants people to beam him up some cash – $30 billion’s worth, to be exact – so that a  four foot above ground pipeline can be built from Seattle to Nevada’s Lake Mead. The fact that Seattle doesn’t have a surplus of water to really be giving out to California, which is in its fourth year of drought, doesn’t seem to bother Shatner much. I’m guessing he didn’t ask officials in Seattle their thoughts on the idea. California Governor Jerry Brown has already issued a drought emergency and apparently there is about a year’s supply of water left. Mr. Shatner isn’t entirely convinced himself that he can even raise the $30 billion needed to build the pipeline but he is hoping to raise awareness on the issue. “If I don’t make 30 billion, I’ll give the money to a politician who says, ‘I’ll build it.’ I don’t think that last part is the best idea Mr. Shatner has ever had, but its sure to get a few people talking.

Not so hog wild…

Image courtesy of dan/FreeDigitalPhotos.net

Image courtesy of dan/FreeDigitalPhotos.net

Profits for iconic Hog maker, Harley Davidson, are up thanks to a somewhat reduced tax rate. So why the sad faces on Wall Street over the price of its shares? Because those very shares took a 6% hit today over revenue that fell 3.4% to $1.51 billion, down from $1.57 billion a year ago. The bike makers also revised forecasts that have less bikers getting on those legendary two-wheeled machines. Harley-Davidson initially expected to deliver between 282,000 – 287,000 Hogs this year. But now that range is looking closer to 276,000 – 281,000 orders. Some of that, of course, can be attributed to that annoyingly strong U.S. dollar that seems to be sucking the fun from just about every company’s earnings these days. But Harley-Davidson has also had to deal with competitors  – hard to believe that anyone can compete with a Harley – who have been offering better discounts and totally messing with the motorcycle company’s earnings. The good news is that the motorcycle brand still took in $270 million and $1.27 per share, even though analysts only expected $1.24 per share. Can someone please get those analysts on a Harley? A year ago the Hogs pulled in about $265 million at $1.21 per share.

Dude, what gives?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Under Armour came out with earnings today and informed those that matter that it hit its revenue targets and raised its outlook. The Maryland-based athletic company even has PGA Masters Winner Jordan Spieth shilling for it. Under Armour also pulled in 5 cents per share on revenues of $805 million when analysts only called for $802.5 million. The apparel division grew 21% while the footwear division grew 41%. So why are investors still not satisfied with the athletic apparel company’s earnings? Here’s where things get dicey. Even though Under Armour raised its outlook for revenues from $3.76 billion to $3.78 billion, investors, analysts and others who throw large sums of money at the company expected higher projections of $3.82 billion in revenues. That $.o4 billion difference put a damper on the morning for many investors. Hence the stock took a bit of a hit this morning. Nothing major, just a few percentage points, but enough to put several Wall Street-ers in a bit of a snit.