Urban Outfitters Inc. (NASDAQ: URBN) may have been great once, but now it is a peaking story. Despite a recent recovery and despite a 2.2% gain to $29.41 today, the retail apparel destination is getting crushed on news that its chief executive officer is resigning from the company.
- Glen T. Senk resigned as Chief Executive Officer on January 9, 2012. Mr. Senk will be succeeded by Richard A. Hayne, Chairman of the Board and President, effective immediately.
As far as why this matters, Senk has been at Urban Outfitters for 18 years. For an analogy, that is what you call a CEO “who knows where the skeletons are and where the keys to castle are.” The news notes that he plans to pursue another opportunity, but that he will remain with the company for a period of time to assist management with the transition. Mr. Senk has also indicated that he would be leaving the Urban Outfitters board of directors as well.
Shares are down by over 13% and just under $25.40 in the after-hours trading session versus a 52-week trading range of $21.47 to $39.26. Maybe the company will look for some private equity interest now… or not.
JON C. OGG
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