Shares of Urban Outfitters' stock dropped 15 percent in after-hours trading on the news that CEO Glen Senk had resigned "to pursue another opportunity." What makes the strong reaction so unusual is that Urban Outfitters' business has been struggling over the past year.
"The news is shocking and disappointing," Anna Andreeva, an analyst at FBR Capital Markets, told Bloomberg News. "Obviously, the company has been somewhat challenged under his leadership in the last year, but this challenges the recovery."
Urban Outfitters announced that Richard Hayne, chairman of the board and president, would assume Mr. Senk's duties immediately. The news was not greeted warmly by the street.
According to Reuters, Liz Dunn, an analyst with Macquarie, wrote in a note to investors, "We have low confidence that Dick Hayne will be the right leader to usher in the new 'big company' era Urban needs to embrace."
- Urban Outfitters, Inc. Announces Resignation of Glen Senk and Appointment of Richard Hayne as Chief Executive Officer - Urban Outfitters, Inc./Globe Newswire
- Urban Outfitters Reports Record Holiday Sales - Urban Outfitters, Inc./Globe Newswire
- Urban Outfitters CEO resigns, stock falls 15 percent - Reuters
- Urban Outfitters Tumbles After CEO Resigns - Bloomberg News