Conn’s ( NASDAQ: CONN ) shares slid nearly 20% in premarket trading on Tuesday after the sudden departure of CEO Chandra Holt.
The Texas-based specialty retailer announced on Tuesday that Holt would step down from her role as CEO and resign her seat on the board, effective immediately. Norman L. Miller will serve as interim CEO, returning to a role he held from September 2015 to August 2021 when he was succeeded by Holt.
“The Board is pleased to welcome Norm back as Interim President and Chief Executive Officer. Norm’s deep familiarity with Conn’s business model and past successes ensures a seamless transition,” Bob Martin, Conn’s lead independent director, commented. “During his previous tenure, Norm stabilized the Company’s retail and credit operations, grew its store footprint, and guided the Company profitably through several unprecedented challenges including the global pandemic in 2020 and 2021.”
A period of challenges is currently confronting the retailer once again, according to Miller. In particular, inflationary pressures bearing down on consumers were noted as hampering Conn’s sales to a great degree.
“Conn’s ( CONN ) remains challenged by macroeconomic headwinds, which is impacting consumer spending and disproportionately affecting year-over-year sales to the Company’s financial access customer segment and sales of discretionary product categories,” the company said on Tuesday. “As a result, the Company currently expects total revenue for the fiscal year 2023 third quarter to be down 21% to 23%.”
The forecasts add that operating margin for the third quarter is expected to be in the negative mid-single digits when the company presents its results in early December. For the full fiscal year 2023, the retailer withdrew its previous guidance.
Shares of the Texas-based retail chain fell about 30% shortly after the announcement before moderating losses toward about a 20% drop. The implied opening price on Tuesday would mark a new 52-week-low for the stock.
Read the full announcement of the leadership change .
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Conn’s stock crashes 20% after sudden CEO resignation, pulled guidance