The board of SpartanNash Company SPTN has recently announced the retirement of its Chief Executive Officer (CEO) and Chairman. Shares of SpartanNash declined 1.8% on Mar 5 after the news.
Per the announcement, Dennis Eidson will retire as the CEO of the company following the annual meeting on May 23, though he will continue to be the Chairman of the board.
Eidson will be succeeded by David M. Staples, who currently holds the position of President and Chief Operating Officer in the company. He was appointed to the company’s board on Mar 2. Prior to this, Staples held the role of the company’s Chief Financial Officer for 16 years. Keeping in view his experience and knowledge about the company, we believe his appointment was a strategic one for the company and is expected to boost the company’s growth in the years ahead.
SpartanNash, a food distributor serving military commissaries and exchanges in the United States, reported better-than-expected fourth-quarter fiscal 2016 results on Feb 22. The company reported adjusted earnings of 53 cents in the fourth quarter, up 1.92% from the year-ago quarter.
Net sales increased 3.4% to $1.83 billion during the quarter on the back of improvements in the food distribution and military segments and retail comparable store sales trends. The company benefited from the shift of New Year’s Day into fiscal 2017.
SpartanNash Company Price, Consensus and EPS Surprise
SpartanNash Company Price, Consensus and EPS Surprise | SpartanNash Company Quote
Despite posting better-than-expected results, the company faces several issues. Food deflation, lower sales at the DeCA-operated commissaries and the closure of retail stores has remained potent headwinds of the company.
If we look into the company’s stock prices, we observe that SpartanNash has been a disappointment over the past three months. In the said period the stock has declined 12.1% wider than the Zacks categorized Retail-Wholesale’s growth of 2.2%.
SpartanNash currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the retail sector are The Children’s Place, Inc. PLCE, Zumiez, Inc. ZUMZ and Genesco Inc. GCO. While Children’s Place holds a Zacks Rank #1 (Strong Buy), Zumiez and Genesco carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While Children’s Place has expected long-term earnings growth of 10.3%, Zumiez and Genesco have expected long-term earnings growth of 15.0% and 9.5%, respectively, for the next three to five years.
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