Shares of Conn's Inc. plummeted 18.6% in premarket trading toward a more than two-year low, after the home goods retailer warned of a revenue shortfall and said its chief executive officer stepped down after just 14 months in the role. "Conn's remains challenged by macroeconomic headwinds, which is impacting consumer spending and disproportionately affecting year-over-year sales to the company's financial access customer segment and sales of discretionary product categories," the company said in a statement. Conn's expects fiscal third-quarter revenue to be down 21% to 23% from a year ago, while the current FactSet revenue consensus of $326.1 million implies a 19.6% decline. The company said Chandra Holt, who was named CEO in August 2021, has stepped down effective immediately, and will be succeeded by Norman Miller, who Holt had replaced as CEO. Given the leadership change and "retail uncertainty," the company said it was withdrawing its fiscal 2023 financial guidance. The stock, which is on track to open at the lowest price seen during regular-session hours since May 2020, has plunged 65.5% year to date through Monday, while the SPDR S&P Retail ETF has tumbled 34.7% and the S&P 500 has dropped 22.8%.
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