Latest Setback Sends Venator Stock Lower

Is there no bottom for the stock of Venator Group, the former Woolworth Corp.?

The shares hit a record low of $3.19 in trading Thursday before closing at $3.56 on the New York Stock Exchange, unchanged from Wednesday.

The stock has slumped 50% since mid-January, including 21% just this week, on concern that the largest U.S. retailer of sneakers and athletic clothes may face a tougher future after a series of setbacks capped by the resignation of its chief financial officer.

The firm, which operates the Foot Locker and Champs Sports chains, said Wednesday that Chief Financial Officer Reid Johnson resigned for undisclosed reasons.

The resignation comes three weeks before Venator’s scheduled announcement of fourth-quarter results. Tuesday, its credit ratings got knocked down below investment grade by Standard & Poor’s Corp.

Venator has had a succession of problems, including a wider-than-expected third-quarter loss and a warning about fourth-quarter results. Sales at stores open at least a year fell 4.6% last quarter.

In December, Venator said it obtained a waiver of a credit agreement. Johnson’s exit raises further questions about the state of Venator’s finances.

“When you have a company that’s been troubled, and the CFO resigns in the midst of what should be their audit period, it has to raise eyebrows,” said analyst Donald Trott at Brown Bros. Harriman.

Johnson, 56, declined to comment when reached at his office. His resignation is effective next week.