Urban Outfitters Falls Following CEO Resignation

The Urban Outfitters Inc (NASDAQ:URBN) stock was in the dumpster this morning as investors reacted to the company’s announcement that long time CEO, Glen Senk, had resigned, and that co-founder Richard Hayne was now at the helm.

The stock sank 18 percent this morning. Last year it had fallen 23 percent on declining profits following failed product lines that were off the fashion curve. Senk, who joined the company almost 18 years ago as president of the company’s Anthropologie stores, had said earlier that the retailer’s troubles were the result of “a fashion issue, plain and simple.” The company was forced to clear the unwanted inventory at heavy discounts which affected its profit margins – it reported declining earnings for four straight quarters.

Reacting to the news of the resignation, Anna Andreeva, an analyst at FBR Capital Markets in New York, said yesterday: “The news is shocking and disappointing. Obviously, the company has been somewhat challenged under his leadership in the last year, but this challenges the recovery.”

Here’s how Urban Outfitters and its competitors are reacting to the news today:

Urban Outfitters Inc. (NASDAQ:URBN): URBN shares recently traded at $24.00, down $5.41, or 18.4%. They have traded in a 52-week range of $21.47 to $39.26. Volume today was 14,098,704 shares versus a 3-month average volume of 3,249,510 shares. The company’s trailing P/E is 17.70, while trailing earnings are $1.36 per share.

Abercrombie & Fitch Co. (NYSE:ANF): ANF shares recently traded at $44.99, up $0.03, or 0.07%. They have traded in a 52-week range of $43.56 to $78.25. Volume today was 1,038,917 shares versus a 3-month average volume of 3,037,410 shares. The company’s trailing P/E is 20.21, while trailing earnings are $2.23 per share.

American Eagle Outfitters, Inc. (NYSE:AEO): AEO shares recently traded at $13.04, down $0.03, or 0.23%. They have traded in a 52-week range of $10.00 to $16.37. Volume today was 1,237,790 shares versus a 3-month average volume of 4,317,230 shares. The company’s trailing P/E is 13.61, while trailing earnings are $0.96 per share.

Buckle Inc. (NYSE:BKE): BKE shares recently traded at $41.12, down $0.26, or 0.63%. They have traded in a 52-week range of $33.97 to $47.97. Volume today was 82,374 shares versus a 3-month average volume of 448,443 shares. The company’s trailing P/E is 13.40, while trailing earnings are $3.07 per share.

Gap Inc. (NYSE:GPS): GPS shares recently traded at $17.89, down $0.25, or 1.38%. They have traded in a 52-week range of $15.08 to $23.73. Volume today was 1,122,860 shares versus a 3-month average volume of 5,319,910 shares. The company’s trailing P/E is 10.30, while trailing earnings are $1.74 per share.

To contact the reporter on this story: Brooke Edge at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com