Shares of H&R Block closed down almost 18 percent on Wednesday as markets reacted to CEO Jeff Jones’ new plan to fuel long-term growth.
Jones laid out the plans Tuesday after the Kansas City-based tax services company announced that it had seen a 50 percent increase in quarterly profits, but that it plans to close 400 low-performing tax offices.
Jones assured analysts the company was making investments that would lead to growth, but the company projected lower profit margins due to investments it plans to make in technology, quality assurance and other areas.
“We’ve been a business that thinks about one season at a time,” Jones said. “You see us now taking a multi-year view of how we position the business for long-term growth.”
Read more: Kansas City Star