By Sam Boughedda
Fox Factory Holding (NASDAQ:FOXF) shares dropped more than 9% in early Wednesday trading after it said Chief Financial Officer Scott Humphrey will leave the company on April 14.
Humphrey joined the company in June 2020 after previously serving as Hibbett Sports' interim CFO. The departure from FOXF was unexpected, with the company not providing any details on why he is leaving the role, only stating in a filing that "the Board of Directors of the company determined that Mr. Humphrey's separation is a termination without cause under the Employment Agreement."
Maggie Torres has been appointed as Interim Chief Financial Officer and Interim Treasurer.
"Scott played a key role in aligning financial offices across the company and building out a more comprehensive financial infrastructure," said Mike Dennison, Chief Executive Officer of Fox Factory. "We are thankful for his service to the company and wish him the best as he seeks out the next opportunity."
Reacting to the news, Stifel analysts said in a note to clients that since stepping into the role, Humphrey was "instrumental in building the finance organization team, systems, and processes to support the increasing scale of the business."
"We are surprised to see the announcement of his departure but expect a smooth transition supported by Ms. Torres' familiarity with the organization," wrote analysts, who reaffirmed a Buy rating and $133 price target on FOXF shares.