Under Armour Inc.
The athletic footwear and apparel maker announced Wednesday that its board of directors approved the offering of a new Class C non-voting common stock. The Class C stock will be issued through a stock dividend on a one-for-one basis to all existing holders of Under Armour’s Class A and Class B common stock, which will have the same effect as a two-for-one stock split, the company said.
The shares of Class C stock will be distributed on or about April 7, 2016, to stockholders of record of Class A and Class B stock on March 28, 2016.
In June 2015, Under Armour Chairman and CEO Kevin Plank first announced the creation of a new non-voting Class C common stock. At the time, insiders called the decision a “power move” on the part of Plank, noting that the non-voting clause allowed the CEO to maintain a stronghold on the firm.
Volcom Sells Electric Brand
Volcom, a surf, skate and snowboarding brand in the Sport & Lifestyle division of Kering, announced Wednesday that it has sold Electric, a sport and lifestyle accessory brand. The California-based Kering was sold by Volcom via a management buyout to a group led by Electric CEO Eric Crane.
The transaction, effective on March 16, 2016, includes all the assets of Electric and the rights attached to the brand.
Electric was acquired by Volcom in 2008.
Weekly Retail Sales
Total U.S. athletic footwear point-of-sales were up 8.9 percent year-over-year for the week ending March 12, 2016, compared to a 13.5 gain in the prior week, Citi Research analyst Kate McShane said in a note Thursday, referencing SportScan data.
By category, sales in casual athletic climbed 21.1 percent year-over-year; basketball sales gained 9.1 percent year-over-year; and sales in running were up 3.6 percent year-over-year.
Meanwhile, total U.S. retail visits declined 4 percent year-over-year in the second week of March, McShane said in another note that referenced data from ShopperTrak’s Market Intelligence product.