The Wall Street Journal - 23.10.2019

B2| Wednesday, October 23, 2019 ** THE WALL STREET JOURNAL.**

INDEX TO BUSINESSES

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A
Amazon.com........B2,B14
Apple...........................B5
B
Bank of New York
Mellon.....................B12
Beyond Meat.............B14
Biogen..........A1,B13,B14
Boeing.........................B1
Bristol-Myers Squibb
...................................B13
C
Centerview Partners..B1
Chipotle Mexican GrillB7
Comcast.......................B5
Continental..................B3
E
eBay.............................B1
Eisai.............................A8
E*Trade Financial.....B14
F-G
Facebook.........A3,B4,B14
FedEx.........................B14
FirstEnergy Solutions A2
Frontier
Communications.......B1
Fundrise.......................B6
Goldman Sachs.........B12

H Harley-Davidson..B7,B13 Hasbro..................B7,B13 J-K JPMorgan Chase.........A1 Just Eat.......................B2 Kimberly-Clark............B1 L Lockheed Martin.........B7 Lyft..............................B4 M Marriott InternationalB6 McDonald's..........B3,B13 Moelis..........................B1 N Netflix.........................B5 News Corp...................A3 Nike.............................B1 Novartis.......................B3 O-P Onyx Pharmaceuticals ...................................B12 Procter & GambleB1,B13 Prosus..........................B2 R-S Raytheon.....................B7 Shopify......................B14 Snap.....................B4,B14

SoftBank Group ........................A1,B6,B14 Sprint..........................A2 Starwood Hotels & Resorts Worldwide..B6 T Takeaway.com.............B2 TD Ameritrade Holding ...................................B13 Tencent Holdings........B2 Tilray.........................B14 Travelers....................B13 Twitter.................B4,B14 U Uber Technologies......B2 UBS Group.................B12 Under Armour.............B2 United Parcel Service ............................. B7,B14 United Technologies...B7 V VantageScore..............A2 Verizon Communications .....................................B5 W Walt Disney................B5 Wells Fargo...............B12 WeWork.........A1,B6,B14 Windstream Holdings B1

INDEX TO PEOPLE

ing near records, were little changed in after-hours trading after ending Tuesday’s regular session at $95.60. Mr. Parker, a track athlete at Penn State, joined Nike after college and landed in the company’s R&D lab in Exeter, N.H., in 1979 as a designer. He went on to work with Nike co- founder Bill Bowerman and re- mained heavily involved in sneaker design as he climbed the ranks at the company. In 2006, Nike’s longtime leader and co-founder Mr.

Knight handed day-to-day management to Mr. Parker, after his previously anointed successor, an outsider with little experi- ence in footwear, left after 13 months. In 2016, Mr. Knight re- tired and handed over the chairman role to Mr. Parker. Mr. Knight praised Mr. Parker’s tenure as CEO and the appointment of Mr. Donahoe. “They’ve already worked to- gether on the board for the last five years,” he said. “I’m de- lightedNikeisingreathands for its digital future.”

The company has been posting strong sales in recent quarters both in the U.S. and China, its two biggest markets.

REUTERS

Kevin Plank, the founder and chief executive of Under Armour Inc., is stepping down as CEO, leaving the task of turning around the sportswear maker to a lieutenant. The Baltimore company said Patrik Frisk, the company’s chief operating officer, will take over as CEO at the end of the year. Mr. Plank, 47 years old, who started the sportswear company in 1996, will stay as executive chairman and brand chief. Mr. Plank, a former Univer- sity of Maryland football player, founded Under Armour in his grandmother’s base- ment. He started selling sweat-wicking compression apparel and the business took off. He built it into a global brand with about $5 billion in annual sales, but it has struggled in recent years with fall- ing sales. Mr. Plank owns about a 15% stake but controls the company through a special class of stock that gives him 10 votes per share. Shares of Under Armour rose 6.4% to $21.38. Under Ar- mour shares were trading

above $40 a few years ago, when the company was riding an impressive streak of rapid sales growth. Under Armour added new products and struck endorse- ments with athletes like NBA star Stephen Curry and golfer Jordan Spieth as it challenged Nike Inc. and Adidas AG. But in 2017 sales hit a wall, and Mr. Plank moved to restruc- ture the company’s operations, cutting jobs and hiring Mr. Frisk, an outsider, as president and operating chief. Before Under Armour, Mr. Frisk, 56 years old, was CEO of Aldo Group, a footwear chain, and worked at VF Corp.

BUSINESS & FINANCE

Like many companies, Un- der Armour has struggled at times to professionalize its workplace as the once- scrappy startup has grown into a business with thousands of employees. The company grappled with complaints about its cul- ture, including strip-club vis- its and inappropriate behavior by executives. Mr. Plank was also ques- tioned last year by the board about his ties with MSNBC anchor Stephanie Ruhle, after the company uncovered inti- mate emails between them, The Wall Street Journal previously reported. Some executives told the Journal that Mr. Plank was seeking the journalist’s advice on business decisions. Mr. Plank has spoken openly about Under Armour’s shortcomings, vowed to make improvements and replaced some senior executives. The company has said Mr. Plank and Ms. Ruhle are friends and that she is one of many friends who offer advice, but management makes its own decisions. The company didn’t re- spond to the Journal’s request

for an interview with Messrs. Plank and Frisk. In interviews with other news outlets Tuesday, the pair said it was part of a long- planned transition. Mr. Plank denied facing pressure from his board to step aside. “To be completely clear, this is strictly my deci- sion,” Mr. Plank told Fortune. In recent years, the company has focused on perfor- mance attire and improving its operations. Despite changes, it has continued to struggle in its domestic market. For its second fiscal quarter, Under Armour reported a 3% decline in sales in North America and said it expects them to decline over the full year. Nike, meanwhile, has posted strong sales in North America. Under Armour said Mr. Frisk will report to Mr. Plank in his new role as CEO and join the company’s board. Mr. Frisk has taken over much of the company’s day- to-day operations in recent years and joined Mr. Plank on earnings calls and investor events.

BYKHADEEJASAFDAR

Under Armour CEO Gives Up Post

Founder and chief Kevin Plank

ANDREW CABALLERO-REYNOLDS/AFP/GETTY IMAGES

tinue to drive sales gains by offering items packaged in smaller quantities and with marketing aimed at budget- conscious consumers. “If there is a downturn, we’re as best positioned for consumers who are in a pinch,” he said.

P&G’s net sales were $17.8 billion for the quarter ended Sept. 30; net earnings rose to $3.6 billion, from $3.2 billion a year earlier. The company notched its best sales gains in its beauty segment, where or- ganic sales increased 10% in

A-B
Abney, David.............B14
Barber, Jim................B14
C-D
Calhoun, Dave.............B1
Cohen, Bryan.............B12
Daley, Bill..................B12
E
Easterbrook, Steve.....B3
El-Khouri, Joseph.....B12
Ermotti, Sergio.........B12
F
Farrow, Ronan.............B5
Frisk, Patrik................B2
H
Harford, Suni............B12
Harnett, Ian..............B13

Herrero, Alicia García ...................................A18 Hockey, Tim..............B13 L Lack, Andy...................B5 Lettieri, John..............B6 Loeffler, Chris.............B6 M McAllister, Kevin........B1 Miller, Ben...................B6 Moeller, Jon................B1 Muilenburg, Dennis....B1 N Narasimhan, Vas.........B3 Neumann, Adam.A1,B14 O Oppenheim, Noah.......B5

Ozan, Kevin.................B3 P Parker, Mark...............B1 Plank, Kevin................B2 Porges, Geoffrey.........A8 R Ross, Eric....................B4 S Scharf, Charles..........B12 Socolow, Michael........B5 Son, Masayoshi..........A2 T Taylor, Benjamin.........B1 W-Z Windsor, Darina..........B1 Zuckerberg, Mark.......A3

year. Mr. McAllister was re-
sponsible for the commercial-
airplane unit’s still-unfinished
work to fix the airplane’s sys-
tems and win regulatory ap-
provals.
The executive change hap-
pened the same day the plane
maker accomplished something
it had been striving for since
spring. The Federal Aviation

Continued from page B1

Administration said Boeing handed over to the agency a complete description and safety analysis of the package of soft- ware fixes intended to get the MAX fleet back in the air. Vetting the fixes, subjecting them to simulator tests and then implementing related training adjustments and new cockpit procedures are ex- pected to take several weeks for the U.S. fleet. Mr. McAllister moved to Boeing just three years ago, lured from GE with a big stock package as part of the aerospace company’s push to wres- tle more business from its sup- pliers by expanding its offerings of plane parts and services.

Much of Boeing’s design and certification of the MAX pre- ceded Mr. McAllister’s tenure. But he oversaw the internal re- sponse to the first 737 MAX ac- cident in Indonesia, on Oct. 29, 2018, including his division’s work to fix a MAX flight-con- trol system also implicated in the second crash, in Ethiopia. Attempts to reach Mr. McAl- lister weren’t successful. In a statement, he said: “Boeing is a great company with a commit- ment to safety I have seen first- hand working side-by-side with many thousands of tremen- dously talented and dedicated employees.” His tenure has been marked by problems that extend beyond the MAX at the world’s

largest aerospace company by sales. Various Boeing airplane programs have suffered set- backs, including the delayed in- troduction of the wide-body 777X and U.S. Air Force criti- cism of the company’s KC-46A military tanker, which is based on a commercial jetliner. Mr. Deal is a 33-year company veteran who was picked by Mr. Muilenburg to lead the new services unit with a target of more than tripling annual sales to $50 billion. In that role, he has irked some of Boeing’s biggest partners as the company looks to boost its role in the most profitable parts of the business. —Andy Pasztor contributed to this article.

Boeing

Ousts Chief

Of Jet Unit

more than doubled and Nike’s share price has steadily climbed, giving the company a market value of roughly $150 billion. Nike dwarfs its rivals,

Continued from page B1

with almost twice as much rev- enue as Adidas AG. Nike has been posting strong sales in recent quarters in the U.S. and China, its two biggest markets. The growth has been helped by a shift to sell more products directly to consumers and through its own apps. Mr. Parker ap- proved an ad campaign in 2018 featuring Colin Kaeper- nick, the NFL quarterback- turned-activist, that caused an uproar but boosted sales. Nike shares, which are trad-

Nike’s

Parker to

Step Down

part on higher demand for P&G’s skin care products in China, namely its high-end SK- II brand. Kimberly-Clark said higher prices largely drove the company’s latest quarterly sales increase. CEO Michael Hsu said the company, like P&G, is betting that shoppers will continue to favor premium products, such as a line of Huggies diapers launched this year that costs roughly 40% more than the priciest offering previously on the market. “Premiumization is the path a company like ours needs to take,” Mr. Hsu said Tuesday on a call with analysts. Both P&G and Kimberly- Clark raised their full-year forecasts. —Micah Maidenberg contributed to this article.

ready begun to happen in
some areas. Pricing accounted
for1%ofP&G’ssalesgainsin
the most recent quarter, com-
pared with a 3% contribution
the previous quarter.
P&G is betting that shop-
pers will continue to favor
higher-end variations, such as
specialty toothpaste, adult di-
apers made to resemble linge-
rie and laundry scent-beads.
If they don’t, Mr. Moeller
said, P&G believes it can con-

Continued from page B1

Consumer

Giant Adds

To S t re a k

Procter & Gamble reported sales gains across all its product lines.

Organicsalesbysegment,changefrompreviousyear*

Source: the company

*For 1Q fiscal 2020; excludes currency fluctuations, acquisitions and asset sales

Beauty

HealthCare

Fabric/HomeCare Baby/Feminine/ FamilyCare Grooming

TotalP&G

10%

9%

8%

5%

1%

7%

A newly formed tech-invest-
ment firm in Europe made its
first big move, launching a £4.9
billion ($6.3 billion) offer for
Just Eat PLC and challenging
the global food-delivery ambi-
tions of the likes of Ama-
zon.com Inc. and Uber Tech-
nologies Inc.
The all-cash offer from Pro-
sus NV, which owns a near-third
stake in Chinese internet com-
pany Tencent Holdings Ltd.
and other tech assets, is the in-
vestment firm’s first major
move since South Africa’s
Naspers Ltd. separately listed its
international internet assets last
month.
Prosus said Tuesday that it
would put its proposal directly
to Just Eat’s shareholders
within the next 28 days, amid
the British delivery company’s
planned merger with Dutch rival
Takeaway.com NV.
Prosus said its offer of 710
pence a share is 20% higher
than Takeaway.com’s all-share
bid made in July, based on the
latter’s closing price Monday.
Just Eat urged shareholders

to reject the Prosus offer, saying it undervalued the company and its prospects whether on a stand-alone basis or as part of a merger with Takeaway.com. Shares in Just Eat traded 24% higher in London. The food-delivery sector has been heating up as such businesses gain popularity as an easy way to order meals from restaurants via a smartphone. Amazon this year led a $575 million investment round into Deliveroo, one of the U.K.’s lead- ing food-delivery companies, going head to head with Uber Eats. Amazon’s investment is being reviewed by competition regulators. Food-delivery services are battling for consumers in various markets, including in Britain where Just Eat is a major player. In some cases, operators are striking partnerships. In 2014, Just Eat invested in Bra- zil’s iFood—which is also backed by Prosus—and integrated its operations in Brazil. Prosus, one of the world’s largest technology-investment firms, said it had already spent $2.8 billion across several in- vestments in food delivery.

BYPARMYOLSON
ANDALEXANDRAWEXLER

European Investor

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NEWELL CONVERS WYETH (1882-1945) Legends of Charlemagne: Cover Illustration Sold for $372,500

F

The Wall Street Journal - 23.10.2019

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