Boston, MA 10/13/2014 (wallstreetpr) – Luxottica Group SpA (ADR) (NYSE:LUX), the biggest eyewear manufacturer of the world, fell in Milan trading as its Chief Executive Officer resigned.
Stock Affected Critically
According to an article, Luxottica announced the loss of its second CEO in less a month’s time recently. The news led to an almost immediate downfall of the company’s stock prices, which slumped as much as 10%. Trading now at 36.86 euros, this is the company’s steepest intraday fall in almost six years. Luxottica Group SpA (ADR) (NYSE:LUX)’s stock had traded at such lows last on October 27, 2008.
Luxottica had appointed Enrico Cavatorta as its co-CEO after former CEO Andrea Guerra left the company. Guerra had departed last month on the first of September, post which, Cavatorta had stepped in as co-CEO. He joined as a part of the company’s crucial leadership team, consisting of three key executives of the company. One of the three was Luxottica’s founder Leonardo Del Vecchio. However, the company had already been on the look-out for another co-CEO, with an outsider being the preference.
Analysts’ Take
Cavatorta has now announced his plans to resign from the position, the company announced yesterday evening. Surprisingly, the news comes in at an unexpected time of less than a month’s time of his appointment. This has left the company in unrest, and the event has caused a direct and almost immediate effect on its stock price. In this context, the board of directors of the company will conduct a meeting today to discuss the necessary steps of action now.
Given the series of events and situation at Luxottica, Milan’s Citigroup Inc (NYSE:C)’s analyst, Mauro Baragiola believes that the company may face issues luring strong candidates for the role now. He commented that under the present scenario, it might be difficult for Luxottica Group SpA (ADR) (NYSE:LUX) to woo candidates with international exposure to agree to act as its co-CEO.
