Trump Tweet-Targets Nordstrom; Under Armour CEO Says It All Wrong; Wells Fargo Continues to Anger

Oh no you didn’t…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

 

Just one week after pulling Ivanka Trump’s fashion line from its stores, Nordstrom has managed to incur some serious Presidential social-media wrath, via Twitter of course. The Tweeter-In-Chief wrote that his daughter was “treated so unfairly” by the department store and “She is a great person — always pushing me to do the right thing! Terrible!” Nordstrom argued that the merchandise’s performance wasn’t up to snuff, and that it regularly evaluates the thousands of brands that it carries to decide which ones get the boot and which ones don’t. And Ivanka’s line got it, though the chain had been carrying the line since 2009. Back in November, Nordstrom co-president Pete Nordstrom sent out a company memo explaining that the turmoil surrounding the election is putting the retailer in a “tight spot.” It risks offending Trump-haters for keeping the line, but also risks alienating shoppers who support him. Nordstrom tried to explain that it makes a “sincere effort not to make business decisions based on politics but on performance and results,” but found itself “in a very difficult position.”  That difficult position probably had to do with calls for boycotts of the merchandise, and even the store.  And it’s not like Nordstrom was the only one who took this sort of action. Neiman Marcus Group also stopped selling her jewelry online and in one of its stores in the northeast. Shares of Nordstrom had dropped a smudge 1% following Trump’s tweet. But they quickly bounced back. So maybe the effect of Trump’s fury only goes so far.

That’s gonna come back to haunt you…

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Speaking of which…Under Armour CEO Kevin Plank played nice with Trump so of course, it’s now going to cost him. Literally. During an interview on CNBC’s “Fast Money Halftime Report,” host Scott Wapner asked the athletic apparel chief executive about his involvement in Trump’s initiative to create manufacturing jobs in the United States. Some of the pearls that escaped Plank’s mouth included, “To have such a pro-business president is something that is a real asset for the country…People can really grab that opportunity.” [cue crickets chirping]. Naturally, Under Armour had to issue a statement to clarify Kevin Plank’s remarks – lest anyone think that he really meant what he said, which would lead to a boycott. Except that sort of already happened as “Boycott Under Armour” hashtag made its way into the Twitter-sphere in no time. In the meantime, UA insisted that it engages in “policy, not politics” and Plank’s statements had to do with job creation.  I shall spare you the details of official company statement – you’re welcome! – but rest assured it included all the usual themes about the beauty of unity, diversity, welcoming immigrants etc. The fact is, UA can’t afford any boycotts, whether Plank meant what he said or not. Its shares have been falling lately and in its most recent earnings report, the company missed expectations and forecasted slower growth for 2017.

And here’s one more reason to hate Wells Fargo…

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In case you weren’t incensed enough by Wells Fargo’s fraudulent account scandal, CEO Tim Sloan said that the bank is committed to helping the Dakota Pipeline project. While it would be nice to focus all rage on Wells Fargo, who loaned $120 million toward this project, the fact is the bank is just one of 17 that gave loans to help fund the $3.8 billion project. Obama had initially halted the project, but President Trump swiftly reversed that action and is looking forward to its completion. Come June, the pipeline is expected to ship half a million barrels of crude every day from North Dakota to Illinois. Unfortunately the 1,200 mile pipeline cuts through an Indian reservation with deep cultural significance, and it’s likely the pipeline will incur damage on the site. The pipeline also poses major environmental hazards where it crosses the Missouri River. The Standing Rock Sioux reservation is downstream from the crossing and the pipeline could end up polluting the Tribe’s drinking water. The Seattle Council is doing its part to combat Wells Fargo’s involvement by pulling about $3 billion in city funds.  Seattle has a contract with the bank that expires in 2018, and it most definitely will not be renewed. In the meantime, the council is on the hunt for a more “socially responsible bank.” Good luck with that one.

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American Apparel Just Can’t Seem to Get it Together; Lululemon’s Un-zen-like Projections; Population Popularity

Overpaid…

Image courtesy of jesadaphorn/FreeDigitalPhotos.net

Image courtesy of jesadaphorn/FreeDigitalPhotos.net

Looks like American Apparel has some legal troubles, yet again. Only this time it’s not because of ex-CEO and founder, Dov Charney (sort of), who is apparently still trying to get his job back. The SEC launched an internal investigation into the apparel company over a very pricey review of the ousting of  Mr. Charney and all the unpleasant accusations against him, including several sexual misconduct allegations. However, to be fair, Mr. Charney’s lawyer called the allegations…don’t laugh now…”baseless.” So just how pricey was this review? Like $10.4 million pricey. Which seems expensive  considering the company’s stock was precipitously tanking, is hard up for $27.6 million with unpaid long-term loans, and has just about $8 million in cash. The price tag certainly got the SEC wondering if this major expense helped send the company into debt. The SEC wants to determine if any laws were broken during the review. But don’t hold your breath for any juicy details as the investigation is “non-public.”

Namaste…

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Things are looking sort of zen at Lululemon Athletica as it announced its earnings with some decent numbers reported. The fitness apparel company took in profits of $111 million at 78 cents per share when analysts only predicted 73 cents a share. Last year the yoga apparel maker took in $109.7 million and 75 cents a share. But here’s where things aren’t so zen: Lululemon’s profit projections for the year are $1.85 – $1.90 – much less impressive than what analysts would prefer to see: $2.07 per share. It is kind of odd that Lululemon’s projections would be so much lower than analysts’ predictions considering the retailer has all these big revamping and expansion plans. So, it kind of got Wall Street wondering how much growth can they really expect to see from Lululemon following its successful holiday season. Hence, shares went down over 3%.

Booms and bummers…

Image courtesy of Craftyjoe/FreeDigitalPhotos.net

Image courtesy of Craftyjoe/FreeDigitalPhotos.net

Florida is where it’s at. At least according to the latest stats from the U.S. Census Bureau. Florida becomes the third most populous state, knocking New York off that perch. But a lot of that growth is coming from a place called The Village, Florida, ranked as the fastest growing city with a 5.4% population increase last year to 114,000 people. And with a name like that, of course tons of people are setting up house over there. Wish I was. But that was just one of the many cities experiencing major growth in the Sunshine State. Interestingly enough, and even a bit macabre, is the fact that these new residents helped offset the number of deaths of the many retirees who migrate to the state for their golden years, propelling Florida to a population of of 19.9 million people. New York only has 19.7 million. But California is the number one most populous state with 38.8 million folks.  Some of the other big winners, or rather gainers, were Williams County and Stark County, both in North Dakota, which earned the top spots for fastest growing counties. Of course, the booming oil industry and surplus of jobs can be thanked for that. A big loser? Wayne County, Michigan which took a population loss of about 11,000 people.