Tuesday's Headlines: Hain Plummets After Shock CEO Departure

Tuesday's Headlines: Hain Plummets After Shock CEO Departure

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Trip.com Group (TCOM) +8.3%

Huazhu Hotels Group (HTHT) +6.9%

Wynn Resorts (WYNN) +4.4%

Baozun (BZUN) +3.5%

Shopify (SHOP) +3.4%

Moving Down ⬇️

Hain Celestial (HAIN) -11.1%

Stitch Fix (SFIX) -7.2%

Trex (TREX) -7.2%

Lovesac (LOVE) -6.6%

Nordstrom (JWN) -6.5%

Hain Plummets After Shock CEO Departure 🤯

Shares of Hain Celestial (HAIN) dove yesterday after the shock announcement that it is replacing president and CEO, Mark Schiller. The organic food producer fell 11% on the news. Schiller had been in the top job for four years and is being replaced by industry veteran Wendy Davies on January 1.

Davies boasts a strong resume across the food industry’s largest players, with executive roles in Tyson Foods, Kelloggs, and McCormick & Co. Her most recent role, which she will be vacating to take the Hain job, is from Ireland’s very own Glanbia, where she was President of Americas for the company’s performance nutrition division. Schiller will be moved to a non-executive board position.

While abrupt, the decision to oust Schiller is not all that surprising considering the stock is down 57% year-to-date inclusive of yesterday’s drop. The company has consistently missed expectations in the last few years of his tenure, as well as taking on debt to fund acquisitions and share buybacks.

The Chair of Hain’s board of directors Dawn Zier had this to say:

“We are excited to welcome Wendy as our new CEO. Her global CPG experience and successful track record in driving growth, reducing complexity, and developing talent are key to accelerating the transformative work that the leadership team has undertaken to launch our Hain 3.0 strategy”.

Chinese Stocks Outpace The States 🇨🇳

A host of Chinese stocks listed on U.S. exchanges rose yesterday amid a rare period of public civil unrest in the nation. These gains were enough to see these stocks avoid what was an otherwise weak day for the market, with the S&P 500 Index closing down 1.5% for the day.

Despite the Chinese government reigning in some of its strict COVID-zero policies earlier this month, protests have still arisen as people demand an end to the stifling restrictions. Despite a swift and strong reaction from both the government and local police, it’s expected that these protests will rage on for the foreseeable future.

Investors appear to have seen this display of defiance as a reason to believe that restrictions will likely be lifted, paving the way for a profitable period for hotel and travel stocks such as Trip.com (TCOM), H World Group (HTHT), and Wynn Resorts (WYNN) — with each rising by 8.3%, 6.9%, and 4.4% respectively yesterday, and all of them rising further premarket today.

While it remains highly unlikely that these protests will lead to the swift end of COVID-zero policies in China, particularly considering the generally low rate of vaccination amongst the nation's elderly cohort, they could potentially speed up the loosening of restrictions. Any easing of these regulations would likely spur an economic upturn for the nation, further propelling Chinese stocks higher. It must be noted though, that the majority of these stocks are down considerably for the year already, despite a wholly positive month.

Juventus Chairman, Board of Directors Resign Amid Financial Probe ⚽️

Away from the World Cup, it’s been a tumultuous few weeks for the world of football.

Late on Monday, Juventus Football Club Chairman Andrea Agnelli, along with the entire board of directors, announced they would step down. The resignations come amid a probe into the club’s financial reporting over the past three years.

Shares of the club, which trade on the Italian exchange, fell 6% in early trading on Tuesday morning.

In a statement, the board said there were “pending legal and technical/accounting matters” following an investigation by the public prosecutor's office in Turin and Consob, the Italian market regulator. “We are facing a delicate moment as a company and the unity has failed,” said Agnelli in a letter to employees.

The Agnelli family, who founded Fiat in 1899, controls Juventus and a slew of other commercial interests through its holding company Exor NV. They also control Ferrari NV and the publishing company The Economist Group. The family has had a controlling interest in Juventus Football Club since 1923.

There are fears for the future of the iconic football team as shares take another hit following a difficult few years. The COVID-19 pandemic along with an early exit from the Champion’s League led to the club reporting a €254 million loss in September — the largest in the club’s history.

The Agnelli family announced it would nominate corporate advisor Gianluco Ferrero as chairman. Shareholders will meet on January 17th to nominate a new board of directors.

This is just the latest news to rock the world of football after the Glazer family announced that they would be open to selling Manchester United last week.