Shelley Broader, CEO and president of US women’s wear retailer Chico’s FAS has resigned from her position.
In a statement yesterday (24 April), Chico’s said Bonnie Brooks, former vice chair, president and CEO of Hudson’s Bay Company and a current member of the Chico’s FAS board has been appointed interim CEO with immediate effect.
Go deeper with GlobalData
Chico’s has engaged Herbert Mines Associates to search for a permanent CEO and president.
“Bonnie is a successful retail executive and merchant who has led the turnaround of other fashion retailers, and we are pleased to have her step into the CEO role on an interim basis,” said David Walker, chair of the board. “Her experience in the industry, as well as her time on the Chico’s FAS board, give her a deep understanding of our brands and customers. We are confident that Bonnie will be able to quickly step into the business to benefit the sales, products and merchandising across all of the company’s brands as the board continues its search for a permanent CEO with a strong apparel track record.
“On behalf of the board, I would like to thank Shelley for her many contributions to Chico’s FAS over the past three and a half years. We appreciate the significant operating improvements she initiated and implemented and wish her well in her future endeavours.”
Chico’s reported a net loss of US$16.6m for its recent fourth quarter, compared to net income of $28m in the year-ago period. Adjusted net loss was $8.6m, compared to adjusted net income of $14.5m last year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSusan Anderson, an analyst at B Riley, notes: “while the departure of Broader is sudden, and we believe she was instrumental in rightsizing the cost structure and refining the operations of the business, we believe a change in management is a positive for the company’s continuing effort to make progress on the sales turnaround at the Chico’s and White House Black Market brands.”
She adds the firm believes Brooks has the “right background” to lead the company in the interim.
