Urban Outfitters CEO Resigns, Shares Plummet

Urban Outfitters (NASDAQ:URBN) shares plummeted 16 percent in pre-market trading on Wednesday after the clothing retailer announced the resignation of CEO Glen Senk late Tuesday.

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Citigroup has already responded by downgrading the company’s stock from “buy” to “sell” and cutting its price target on the stock from $34 to $20.

The company, which operates Urban Outfitters stores as well as chains Anthropologie, Free People, and Terrain, has seen its gross margins decline as it tries to clear piled-up inventory by heavily discounting prices.

Senk, who has been with the company since 1994, resigned to pursue other opportunities. Richard Hayne, the company’s chairman and co-founder, will take over as chief executive.

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