US women’s wear retailer Chico’s FAS has named Bonnie Brooks as its new CEO and president – one of a number of executive changes under a new organisational structure to create clear lines of responsibility within the business.
The firm says the moves are designed to drive a “simpler, nimbler organisation” focused on accelerating sustainable sales growth.
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As part of the reshuffle, Brooks, who has served as interim CEO since Shelley Broader’s resignation in April, will take up the position permanently and will remain a member of the Chico’s FAS board.
Meanwhile, responsibility for the company’s apparel brands has been consolidated under one leader. Molly Langenstein, a 30-year retail industry veteran, has been appointed Apparel Group president.
Langenstein will oversee all business activities for the Chico’s and White House Black Market brands. She joins Chico’s FAS after nearly three decades with Macy’s Inc, where she most recently served as general business manager of ready-to-wear with responsibility for all buying, planning and product development for stores and digital, including leading Macy’s sourcing organisation.
The company’s intimates brands, Soma and TellTale, will continue to be led by Mary van Praag, president of the intimates group, who joined the company in September 2017.
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By GlobalData“Since being appointed interim CEO, Bonnie has moved quickly to sharpen the company’s focus on core priorities that have stabilised the business and positioned Chico’s FAS to deliver improved top- and bottom-line results,” says David Walker, chair of the board.
“We received interest from a number of qualified external CEO candidates who brought deep merchant experience. The board determined, however, that the best way to build on the progress underway at this time is to appoint Bonnie as CEO. In addition to providing continuity, Bonnie’s leadership enables us to continue leveraging both her experience driving numerous successful turnarounds at other apparel retailers as well as the knowledge she already has of Chico’s FAS.”
Brooks adds the new leadership structure “will strengthen the organisation, create clear lines of responsibility and accelerate our sales-driving priorities. I am confident we are focused on the right areas and moving in the right direction with stronger performance expected in the second half of the year.”
Susan Anderson, an analyst at B Riley, notes the appointment of Brooks as permanent CEO is an “excellent choice” for the company given her merchandising expertise and familiarity with the retailer where she has served on the board since 2016.
Meanwhile, Chico’s FAS also affirmed its fiscal 2019 second quarter and full-year outlook. For the quarter it expects a mid-single-digit decline in total net sales and consolidated comparable sales, while for the full year, it anticipates a low-to mid-single-digit decline in total net sales and consolidated comparable sales.
Last month, Sycamore Partners submitted an offer to acquire the company, lowering its bid to US$3.00 per share in cash. Chico’s FAS had already rejected a higher buyout proposal from the private equity firm.
