US speciality apparel retailer The Children’s Place has consolidated key management roles in a streamlining move aimed at creating greater efficiencies across the group.
Chief financial officer Anurup Pruthi, and president of global product Pamela Wallack, have both left the company to pursue other opportunities, the company said in an announcement yesterday (5 November).
Jane Elfers will now take the lead on global product, in addition to her role as CEO, while Mike Scarpa will now serve as both COO and finance chief.
“Over the past several years, we have made significant investments in support of our company-wide business transformation efforts,” said Elfers. “As we approach the last phase of our major systems implementations, the opportunity exists for significant efficiencies across the organisation, and today we are announcing a more streamlined senior leadership structure.”
The company said it has continued to deliver positive comp sales every month in the third quarter, resulting in a positive high single-digit comp. As such, it has reaffirmed its third-quarter EPS guidance of US$2.97-$3.07.
In its second-quarter, The Children’s Place delivered its highest ever quarterly comp – a positive 13.2% on top of a positive 3.1% last year – but a 47.6% drop in earnings for the period.
“With the company-wide transformation process in the final innings we believe the announced changes will increase management efficiency, cost saves, and better accountability across the organisation,” says Susan Anderson, analyst at B. Riley, notes. “Management indicated that they expect the new structure to be permanent, implying that they will not be looking for replacements for either of the departing employees.”