Shares of GXO Logistics (NYSE: GXO) were heading lower after the company said that CEO Malcolm Wilson would retire next year. The decline in the stock seemed to be less of a reflection on Wilson, and more based on reports that GXO won't be sold, as reports in October had indicated that the company was fielding multiple takeover offers.
As a result, the stock was down 18.2% for the week as of Thursday at 12:50 p.m. ET, according to data from S&P Global Market Intelligence.
Image source: GXO Logistics.
What's behind the retirement?
In a press release after hours on Monday, GXO Logistics said that Malcolm Wilson told the board of directors that he plans to retire next year.
That news alone was not the reason for the stock's decline. Instead, it was a response to the company's decision to remain as an independent company, according to Bloomberg, which comes after it had considered takeout offers.
That was separate from the company's announcement about Wilson's retirement, but they seem to be related, as Wilson would presumably stay on to guide the sale of the company if it were still interested in selling itself. The stock fell on the news, as it lost the premium it had gained when reports of a potential sale first came out.
What's next for GXO Logistics?
GXO's broader position hasn't changed. The company is still the world's largest provider of contract logistics. It has nearly 1,000 warehouses in North America and Europe, serving global companies like Nike, Apple, and H&M.
It's been impacted by inflation and other macroeconomic headwinds, but it's still poised for long-term growth, both organically and through acquisitions. While the disappointment about the lack of a buyout is understandable, the stock still has a promising future.
The company is currently searching for its next CEO.
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Jeremy Bowman has positions in GXO Logistics and Nike. The Motley Fool has positions in and recommends Apple and Nike. The Motley Fool recommends GXO Logistics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
