Turning our attention to news in the retail sector: jewellery maker Lovisa has poached the boss of youth stationery brand Smiggle.
Chaired by retail veteran Brett Blundy, Lovisa announced this morning that John Cheston will become the chief executive of the business from tomorrow.
Lovisa has more than 700 stores across 30 countries.
Premier Investments Ltd (Premier) own a number of retail brands including Smiggle, Peter Alexander and Just Jeans.Credit: Louie Douvis
“John is a highly successful global retailer and will join Lovisa at a very exciting time as we continue our global growth,” Blundy said in a statement to the ASX.
Lovisa has a market capitalisation of $3.5 billion, while Smiggle’s parent company Premier Investments – which also operates Peter Alexander as well as brands like Just Jeans, Dotti and Portmans – has a market cap of $4.65 billion.
But the investors of both companies don’t appear to see the move favourably: Lovisa’s share price has shed 9 per cent of its value, while Premier has dipped 2.9 per cent in late morning trading.
Premier’s boss, Solomon Lew, has plans to demerge Smiggle out of the wider Premier group by the end of January next year, while a Peter Alexander spinoff is slated for some time in 2025.
A spokesperson for Premier Investments said the company knew of Cheston’s resignation and that he had provided 12 months’ notice.
“Premier Retail remains well positioned in its leadership structure and will work through a constructive transition and succession plan in the months ahead,” the spokesperson said.