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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