The Lovisa Holdings Ltd (ASX: LOV) share price went up 3% on Wednesday on CEO news.
What happened to Lovisa’s CEO?
Lovisa announced that after 12 years of leading the company, Shane Fallscheer is stepping down from the role of Managing Director and CEO.
But the company has already picked a new person to lead the business. It’s going to be Victor Herrero.
Who is Victor Herrero?
Mr Herrero has spent 13 years at Inditex Group, which is one of the world’s largest fashion retailers, with eight store formats such as Zara, Pull & Bear and Massimo Dutti. It has over 6,000 stores in 80 markets with and sales over US$25 billion.
There were a number of positions that Mr Herrero held such as Head of Asia Pacific and Managing Director of Greater China. He led the company’s expansion through this region with 800 stores across multiple countries including China and India.
He also spent four years as the CEO of global retail brand Guess, which has over 2,000 stores across 90 markets with annual sales of US$5 billion.
Mr Herrero was most recently the Chairman and CEO of international shoe manufacturer and retailer Clarks. He is also a director of a NASDAQ-listed and Frankfurt-listed clothing businesses.
Management comments
Lovisa Chair Brett Blundy said:
“Victor has an exceptional track record of driving global expansion and leading complex global retail businesses and will help us to move to the next stage of the global growth strategy of the Lovisa business. Shane hands over the business in a very strong position and the board is excited by the opportunity to continue the global expansion under Victor’s leadership, backed by his extensive global retail experience.”
Summary thoughts about Lovisa and the share price
The Lovisa share price has risen more than 120% over the last 12 months. Investors have certainly taken into account the recovery of Lovisa from COVID-19.
I think it’s a very compelling business with excellent economics for each store. It’s going to be interesting to see how many other countries Mr Herrero takes Lovisa to. The European acquisition was a smart buy in my opinion.
I think it’s one of the ASX growth shares worth watching, though ones in the tech space are even more to my liking.
