The stock market was having a strong day Friday, with all three major indexes well into the green after the opening bell. However, healthcare apparel company Figs (FIGS 3.00%) was moving sharply in the opposite direction. As of 10:15 a.m. ET, Figs shares had declined by 16% to the lowest level since it went public in May.
The reason behind today's move is a key executive's departure. CFO Jeffrey Lawrence announced his intention to retire, effective Dec. 24.
Lawrence came out of retirement in December 2020 to lead Figs' financial house through its initial public offering (IPO). And to say Lawrence brought a great deal of experience to the table would be an understatement. He spent nearly two decades at Domino's Pizza and was executive vice president and CFO before leaving. Domino's has been one of the best-performing stocks of recent history, with a total return of more than 8,200% from its 2004 IPO to present, and it's fair to attribute much of the gain to solid financial leadership. Plus, as a son, husband, and father of registered nurses, Lawrence was personally close with the Figs mission and model.
Lawrence will be replaced in the CFO spot by Daniella Turenshine, who has served as senior vice president of finance and strategy and led the finance team before Lawrence was hired.
To be sure, Turenshine has done a fantastic job at Figs, as the company's financial condition was quite solid when she was leading the team before Lawrence. However, it's normal for the market to react negatively when a key executive leaves so soon (after just one year of employment), and that's especially true when that executive is as highly accomplished as Lawrence.