Jefferies Warns Of A Management Crisis At Urban Outfitters

urban outfittersA hot look from the March catalogue


Urban Outfitter’s CFO Eric Artz is stepping down unexpectedly, only weeks after the sudden resignation of the prior CEO.To equity analyst Randal Konik at Jefferies these and other changes suggest a management crisis.

The investment bank issued a note today entitled: “Management Turnover Is Alarming! Reiterate Underperform!”

Here’s an excerpt:

We find it disconcerting that after just two years at the role, Mr. Artz is already stepping down as CFO. This comes on top of a slew of management changes seen at the company over the past few quarters including the prior CEO’s resignation just over 2 months ago. With yet another unexpected departure we see a significant lack of continuity in management which leads to continued uncertainty around the company’s direction and strategy. As such, we do not expect a snap back in trends anytime in the near future.

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