Why Fairway Group Holdings (FWM) is Diving on Friday

NEW YORK (TheStreet) -- Supermarket chain Fairway Group Holdings  (FWM) was crumbling on Friday after posting a big miss on third-quarter earnings and as CEO Herbert Ruetsch announced his retirement.

By market close, shares had plummeted 29% to $8.12.

In the three months to Dec. 29, the New York-based business reported a net loss of 74 cents a share, a 70-cent deeper loss than analysts surveyed by Thomson Reuters expected. However, profitability had improved upon the year-ago quarter's loss of $4.20 a share.

Revenue increased 23% to $205.7 million, $2 million short of consensus.

"While our business faced a number of headwinds during the quarter including a tougher comparison over last year, the compressed holiday shopping season and a generally softer retail backdrop, we remain excited about our long-term growth prospects," said chairman Charles Santoro in a statement.

Same-store sales decreased 1.7%, excluding Brooklyn-based Red Hook which was closed for three-quarters of the quarter the prior year due to Hurricane Sandy damage. The fall in sales was due to a compressed holiday shopping period and the beneficial impact of Sandy in the year earlier due to a pre- and post-storm stock-up.

The company has initiated efforts to restructure to remove redundancy and efficiently streamline parts of the business model to enhance productivity. Annualized cost savings of around $3 million to $4 million are expected as a result. Over the next year, the company expects to incur charges of around $7 million resulting from restructuring, primarily severance payouts.

Fairway also announced CEO Ruetsch will step down after 15 years at the company, but intends to remain as a special adviser. Ruetsch has held the role of CEO for two years.

Must Read: Not-So Obvious Takeaways from Jobs Report

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists