Thursday didn't give any relief to stock market investors, with attempts during the day to see a sustained rebound failing to provide any follow-through. By the end of the day, the Dow Jones Industrial Average (^DJI -0.25%), S&P 500 (^GSPC -0.12%), and Nasdaq Composite (^IXIC -0.41%) were all back in the red, and although the declines weren't sharp, they took the Dow and S&P to their lowest levels in more than a year.

Index

Daily Percentage Change

Daily Point Change

Dow

(0.75%)

(237)

S&P 500

(0.58%)

(23)

Nasdaq

(0.26%)

(30)

Data source: Yahoo! Finance.

Seeing some of the biggest winners of the past several years lose ground during the current market pullback has been painful, but it hasn't been as surprising as watching some high-profile companies take further losses. On Thursday, shares of Harley-Davidson (HOG 0.91%) and Under Armour (UA -0.71%) (UAA -0.68%) saw big declines as each company made announcements that could have a profound impact on their businesses going forward.

Person riding a motorcycle on a road.

Image source: Getty Images.

Harley halts shipments

Shares of Harley-Davidson were down more than 9% on Thursday. The motorcycle manufacturer took drastic measures in response to potentially problematic issues that arose regarding its vehicles.

Harley-Davidson released a statement Thursday morning that explained its decision to suspend all vehicle assembly and shipments for a two-week period. According to the motorcycle manufacturer, a third-party supplier informed Harley-Davidson earlier in the week that a regulatory compliance issue had arisen with respect to one of the components that it produces. Harley-Davidson characterized the decision as being made "out of an abundance of caution" but offered no further details on the incident.

The decision sent the stock to its lowest levels in more than a year, down more than 35% from its highs in May 2021. More importantly, it likely calls into question whether the motorcycle company will be able to live up to investor expectations, with shareholders currently counting on seeing continued modest earnings growth from Harley-Davidson.

Many value investors  have looked at single-digit earnings multiples from Harley-Davidson stock as being attractive. However, if shareholders can't count on earnings due to potential production problems, then the stock could turn out to be a value trap.

Under Armour faces a leadership crisis

Meanwhile, Under Armour shares were down more than 15%. The athletic apparel company is going through a leadership transition, and it's unclear who will step up to the plate to take Under Armour through a potential turnaround.

Just after the market closed on Wednesday, Under Armour announced that CEO Patrik Frisk would step down effective June 1. Taking his place in an interim role will be COO Colin Browne, and the board said that it had started a search process both internally and externally to find a permanent replacement. Frisk will stay on in an advisory role through the beginning of September in order to smooth the transition.

The decision shocked investors, and if anyone had hoped that founder and board chair Kevin Plank would step in, those hopes were quickly dashed. In a CNBC interview, Plank said twice that he would not return to his former CEO role.

After a tough 2020, Under Armour had seen sales growth return in 2021, but investors remain unconvinced about its turnaround efforts. If the company can find an effective leader to take the next steps to restore the brand's reputation, then Under Armour could have a lot of potential to bounce back in the years to come.