The Fresh Market, Inc. (TFM) recently announced the retirement of Craig Carlock, the president and chief executive officer (‘CEO’) of the company. Carlock also resigned from the board. In addition, the company has reiterated its earnings guidance for fiscal 2014.
After the retirement news of Carlock, the specialty grocery retailer is in search of a new CEO and till a new appointment is made, Sean Crane will serve as the Interim CEO, effective immediately.
Crane has served the company for nearly 14 years and contributed to its growth. He also has significant experience in the industry. He held the position of the Executive Vice President and Chief Operating Officer prior to his appointment as Interim CEO and has also held leadership positions including Senior Vice President of Store Operations (2006-2012) and Senior Vice President of Real Estate and Development (2005-2006). Crane also served as Interim Chief Financial Officer from Dec 2012 to Jun 2013.
The Fresh Market has witnessed five consecutive years of increased sales and earnings under Carlock’s leadership, and had successfully transitioned from a private to a public company. The Fresh Market’s board expects its new Interim CEO to sustain the momentum and help the company gain share in existing markets and expand into new markets.
In addition, The Fresh Market reiterated its earnings guidance for fiscal 2014 provided during third quarter fiscal 2014 results on Nov 20, 2014. The company continues to expect adjusted earnings of $1.56 to $1.64 per share and comparable store sales growth of 2.5% to 3.5% for fiscal 2014.
In the third quarter of fiscal 2014, earnings of 27 cents increased 17.6%. The company was able to absorb rising cost inflation despite a competitive environment. Sales increased 15.1% on the back of 3.3% growth in comparable store sales, as the company benefited from increased customer traffic. The Fresh Market’s gross profit increased 13.1% on higher sales. Adjusted EBITDA increased 13.3% in the third quarter of fiscal 2014.
The Fresh Market carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked companies in the retail sector include Ingles Market, Inc. (IMKTA), The Kroger Co. (KR) and Safeway, Inc. (SWY). While Ingles Market sports a Zacks Rank #1 (Strong Buy), Kroger and Safeway carry a Zacks Rank #2 (Buy).
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