H&R Block stock slammed by simplified tax returns

Tim Phillips on GOP spending

WASHINGTON - Shares of H&R Block (HRB) were down for the second day in a row following the tax preparer's announcement that it would shutter 400 offices in response to the new tax law that could simplify the average American's return.

As more people opt for do-it-yourself software such as TurboTax, the Kansas City, Missouri, company said it would invest in new technology and focus on retaining customers by providing a range of options for them to file their taxes.

H&R Block reported a 4 percent increase in revenue and a 2.5 percent jump in its U.S. client base in 2018, but the company said it expected revenue to decline 3 percent next year. Shares tumbled 18 percent on Wednesday and another 2 percent Thursday, falling to $23.71 from $29.60 in two days.