Body Central Corp.
) recently promoted Tom Stoltz to the position of the chief
operating officer (COO) as well as the interim chief executive
officer (CEO). Stoltz had been serving as the company's executive
vice president, chief financial officer (CFO) and treasurer since
September 26, 2011. However, he will continue to operate as the CFO
of the company.
The shuffle in management follows the retirement of Allen
Weinstein from the position of president and CEO, effective August
16, 2012. The company will now be on the lookout for a
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In his new role, Tom Stoltz will be in charge of the company's
regular operations as well as all financial issues including
corporate finance, financial planning and analysis, tax, treasury,
corporate facilities and information technology.
Stoltz has donned many important roles in his illustrious career.
He was the CFO at Fanatics, LLC from 2008 to 2011. Prior to that,
he held the same post at
Citi Trends Inc.
), and Factory Card Outlet. Cato and Citi Trends are well-known
retailers of urban fashion apparel and accessories in the United
With his rich financial experience, Stoltz can easily be tagged as
an industry veteran in both specialty store and e-commerce
channels. A number of senior finance positions held at
Dollar General Corporation
), a discount retailer of general merchandise in the southern,
southwestern, mid-western, and eastern United States, and Food Lion
Inc. also vouch for his expertise.
Management is hopeful that Stoltz's vast know-how and expertise
regarding retail will add value to Body Central's growth during his
tenure as the interim CEO. The Florida-based multi-channel
specialty retailer, selling quality apparel and accessories also
incorporated other managerial changes. It has appointed an industry
veteran, Robert Glass, as a member of the Board of Directors. The
company is also hiring a general merchandise manager to support its
In the second quarter of 2012, Body Central's net revenue grew
6.3%, while its net income dipped 35.8% year over year. The company
also slashed its guidance for the second half of 2012 reflecting a
tough retail environment.
In such a scenario, the role of an interim CEO will be crucial as
the company needs proper brand re-invigoration and sales strategies
to drive revenue and earnings. Also, the transition is still at its
early stage, keeping us cautious until there is further evidence of
Body Central currently retains a Zacks #5 Rank, which translates
into a short-term Strong Sell rating. We are maintaining our
long-term Underperform recommendation on the stock.