Australian bargain retail company The Reject Shop [ASX:TRS] has said its CEO, Phil Bishop, will be resigning for ‘personal reasons’ from today.
TRS’s Chief Financial Officer Clinton Cahn has been chosen to step in as Acting CEO in the interim.
The company made the announcement along with preliminary 1H FY23 expectations in which the company expects first half sales to total $439.7 million, an increase of 3.5%.
TRS shares dropped to $4 in mid-morning trade, settling around $4.11 by noon.
To date, the discount retailer is trading 41% below the ASX 200 12-month average.
Source: TradingView
The Reject Shop’s CEO walks out
In a surprise announcement on Wednesday, The Reject Shop said Chief Executive Officer Phil Bishop has decided to step down from his role after serving seven months in the role.
Mr Bishop cited ‘personal reasons’ for his stepping down from the company helm, his departure effective immediately.
The group’s Chief Financial Officer, Clinton Cahn, has been appointed as Acting CEO.
Cahn will be required to fulfil both CEO and CFO duties in the interim until he is relieved by a permanent replacement for Bishop.
To assist Cahn, the company has arranged for Chief Operating Officer Amy Eshuys to work alongside him ‘to ensure the Company’s positive momentum continues, particularly as it relates to its improving merchandise offering’.
Cahn has been in this situation before, acting as CEO between April 2022 and July 2022, before Bishop joined and after the company lost Andre Reich, his predecessor.
Not much more was said on the matter. The Chairman of The Reject Shop, Steven Fisher, commenting:
‘On behalf of the Board and The Reject Shop team, we thank Phil for his work over the past six months and wish him well. A search for a new CEO will commence immediately.’
TRS preliminary results and trading update
Aside from the exiting CEO, TRS also provided an update on its half-year results, highlighting preliminary unaudited figures for the first half of FY23.
TRS reported an expectation for first-half sales to reach $439.7 million, an increase of 3.5% compared with store sales at the same time in FY22.
EBIT for the first half is expected to be in the range of $22.5 million and $23.5 million, compared to $20.5 million for 1H FY22.
The Reject Shop also noted that its balance sheet approximates $84 million in cash, with no drawn debt.
The company said that while comparable store sale growth was positive for the first four weeks of the second half, there were negative sales impacts caused by the Omicron variant.
Nevertheless, a strong Christmas trading period has added positive momentum to January sales. Mr Fisher said improved merchandise offerings, an experienced senior leadership team, and cash position should allow the company to create value for shareholders and assist in the ongoing expansion of the store network.
Full results will be shared with the public on 23 February.
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