CEO succession plan
Burlington Stores (BURL) stock surged 9.1% on April 24 in reaction to the CEO succession plan the off-price retailer announced after the markets closed on April 23. Burlington Stores announced that Thomas Kingsbury, its chair, president, and CEO, would relinquish his position as the CEO of the company on or around September 16, and he would assume the role of executive chair of the company’s board of directors. Kingsbury has been serving as the company’s president and CEO since December 2008, and he was appointed as the board chair in May 2014.
Kingsbury will be succeeded by Michael O’Sullivan as CEO of the company. O’Sullivan served as president and chief operating officer of Ross Stores (ROST) until earlier this month.
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Burlington Stores also announced that Jennifer Vecchio, chief merchandising officer, had been appointed to the newly created position of president, chief merchandising officer, effective immediately.
After its surge on April 24, Burlington Stores stock was up 8.6% on a year-to-date basis on April 24. Burlington Stores stock fell 11.9% on March 7 as the company’s fourth-quarter sales missed its management’s guidance as well as analysts’ estimates. However, the company’s fourth-quarter adjusted EPS beat analysts’ expectations. The company blamed its weak sales on challenges in the cold weather and ladies apparel categories.
The stocks of larger rivals Ross Stores and TJX Companies (TJX) were up 18.5% and 23.9%, respectively, on a YTD (year-to-date) basis as of April 24. In comparison, the S&P 500 Index was up 16.8% on a YTD basis.