The Fresh Market (TFM) stock plunged to a six-month low Wednesday after the specialty grocer missed earnings expectations and announced that its CFO will step down next month.
Shares of Greensboro, NC-based company tumbled as much as 19% to $49 a share -- the lowest level since late May.
Fresh Market's third-quarter profit rose 19% to $10.9 million, or 23 cents per share, but that was short of the 26 cents per share that analysts polled by Thomson Reuters had forecast.
Sales during the quarter jumped 21% to $321.5 million, coming in slightly above the $319 million analyst were looking for.
In addition to its earnings, Fresh Market also announced that CFO Lisa Klinger will leave her post in December to take a similar position at a private equity-backed clothing retailer.
The earnings miss and management change gave StockTwits traders plenty to talk about.
Prior to the day's sell-off, shares of Fresh Market were trading at almost 44 times 2013 earnings expectations.
With the day's pullback, the stock's price-to-earnings ratio is still a lofty 35, in line with rival Whole Foods (WFM). But some believe Fresh Market's stock deserves a slightly higher price.
Some also think investors may be overreacting to the management change, saying the upcoming departure of Klinger, who joined the company in March 2009 and led it through its initial public offering in 2010, shouldn't be a surprise.
Fresh Market said it will begin to search for a new CFO, but until then, COO Sean Crane will assume the role.
Not a member yet?Sign up now for a free account
|The curious case of the White House official Trump says 'doesn't exist'|
|'Solo: A Star Wars Story': Is the franchise suffering from fatigue?|
|Gas prices soar on Memorial Day weekend. These places are hit hardest.|
|Trouble in Big Food: America's cereal, soda and soup companies are in turmoil|
|Tesla Model 3: Price options and upgrades you'll have to purchase|