Chief Executive Glen Senk announced his resignation this week and will be replaced by Chairman, President and Co-Founder Richard Hayne. Senk said he is leaving the company to pursue another opportunity.
The reshuffle comes as Urban Outfitters tries to regain its footing following merchandise missteps and an inventory glut. The specialty apparel retailer has also experienced a slew of management changes in recent months.
The disruption at the top is causing analysts to rethink the company's timeline for a turnaround."Urban Outfitter's announcement that CEO Glen Senk is leaving unhinges the linchpin to the bull thesis and high valuation," Jefferies analyst Randal Konik wrote in a note. "We believe bulls were focused on management quality, particularly at the CEO level, as retail stories are very dependent on management team talent. This latest news puts the company's strategic direction in question and puts a hole in the key bull thesis. Bottom line, we see continued earnings risk and continue to be sellers." Recently, Urban Outfitters appointed David McCreight as head of its Anthropologie division and Charles Kessler as chief merchandising officer of its namesake brand. "With
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