The Kathmandu share price is on watch today after the resignation of its chief executive Xavier Simonet. Kathmandu owns Rip Curl and Oboz.
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Clothing and outdoor gear retailer Kathmandu Holdings Ltd (ASX: KMD) has today announced the resignation of its chief executive, Xavier Simonet. The Kathmandu share price will be one to watch today following this announcement.
What was announced today?
Kathmandu says Simonet will resign from the company to take up a senior role with the Australian Public Service. The company did not mention specifically which government department he will be serving.
Simonet has been with Kathmandu for the last five years in the chief executive role, and will remain with the company through his mandatory six-month notice period, or until the board decides to release him.
What did Simonet achieve during his tenure?
Simonet led the company through what he called a “transformational journey from a leading Australasian retailer to a global brand.”
During his tenure, he was involved in major acquisitions for the group – which included the purchases of iconic Australian surf wear brand, Rip Curl, for $350 million in 2019, as well as the American hiking boots company, Oboz, for $97 million in 2017.
What did management say?
Kathmandu chair, David Kirk, said:
We are disappointed to lose Xavier, but understand his desire to take up a senior role in the Australian Public Service, for which he is very well credentialed. We wish him well in the important work he will undertake.
Xavier has led Kathmandu Holdings through a period of growth and repositioning of the company. Kathmandu, Rip Curl and Oboz are three iconic brands which together create a world class outdoor adventure company, diversified by geography, channel to market and seasonality.
Xavier will remain with us for up to six months while we undertake a comprehensive search for his successor.
Mr Simonet, commenting on his resignation said:
I have had an awesome time at Kathmandu Holdings, where I have spent the last five immensely exciting years.
The Group has great brands, passionate teams and strong values. I am very grateful to our teams, to the Board of Directors, to our shareholders and to my Chairman, David Kirk, for their support.
Sales results and the Kathmandu share price in 2020
For the 12 months ending 31 July 2020, Kathmandu reported a 48.7% increase in sales to NZ$801.5 million. This was driven by a nine-month contribution from the Rip Curl business and strong online sales growth. The latter was up 63% over the 12 months to NZ$106.4 million.
However, for the first quarter of FY21, Kathmandu has revealed a 24% decline in retail sales at group level as coronavirus restrictions lingered in Australia and overseas.
The Kathmandu share price has lost over 40% in 2020. It started the year at $2.21 before dropping to as low as 47 cents in March. It has partially recovered since and, at the current price of $1.23, commands a market capitalisation of $869 million.
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