Jewellery retailer Lovisa Holdings (ASX: LOV) is taking an aggressive approach to growth with the appointment of former Smiggle boss John Cheston as CEO and fellow former Premier Investments (ASX: PMV) executive Mark McInnes as executive deputy chairman.
While Cheston’s appointment to replace former Lovisa CEO Victor Herrero had previously been flagged, the enlistment of McInnes in the new executive deputy chairman’s role has come as a surprise.
McInnes joins the Lovisa board with an annual salary of $2 million, just below the $2.35 million agreed for Cheston last year.
Both Cheston and McInnes assumed their new positions today, completing a coup for billionaire retail industry investor and Lovisa chairman Brett Blundy in bringing on board former executives of retail rival Solomon Lew’s Premier Investments.
McInnes, who left Premier Investments as CEO in 2022 after more than a decade with the company, is currently global retail and consumer CEO at Blundy’s private investment company BB Retail Capital – owner of 39 per cent of Lovisa’s issued capital.
The company says that McInnes has a proven track record in retail and will play a key role in supporting Cheston and the leadership team in “setting Lovisa up for its next stage of global growth”.
“Mark’s extensive experience and proven track record of success in large Australian ASX listed retailers, combined with his leadership skills make him an invaluable member of the board and executive management team,” says Blundy.
“We are confident that his contributions will further strengthen our position in the industry and drive long-term value for shareholders.”
Lovisa says its board is “constantly evaluating the skills and experience required of its directors to best drive outcomes for all shareholders”.
As a result, the company plans to appoint a new independent non-executive director to “continue its commitment to board governance and oversight”.
Cheston, who spent 12 years with Smiggle, was appointed general manager in 2022 but was controversially sacked by Premier Investments in September last year - just three months after revealing his plans to take the helm at Lovisa.
Premier Investments cited “serious misconduct and a serious breach of his employment terms” for dismissing the seasoned retail executive. However, Cheston has refuted these claims.
Lovisa, which operates 943 retail outlets in 50 countries, delivered an 8.8 per cent increase in revenue to $405.9 million for the first half of FY25.
While this was aided by 57 new store openings, comparable store sales barely increased – up 0.1 per cent compared with a year earlier.
When announcing its interim result in February, Lovisa said the first seven weeks of the current half saw comparable store sales increase by 3.7 per cent.
Shares in Lovisa have made a strong recovery this year since hitting a low of $21.68 in April.
The shares were trading 8 per cent higher at $31.67, up $2.34, at 1.11pm (AEST) following today’s announcement of the leadership transition.
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