The Lovisa Holdings Ltd (ASX: LOV) share price is under pressure on Wednesday morning.
At the time of writing, the fast fashion jewellery retailer's shares are down 2% to $17.95.
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Why is the Lovisa share price tumbling?
Investors have been selling down the Lovisa share price today after it announced the exit of its long serving Managing Director and Chief Executive Officer.
According to the release, Shane Fallscheer intends to step down from the role after 12 years leading the company.
The good news is that Lovisa has already secured a replacement. It has announced the appointment of Victor Herrero as its new Global Chief Executive Officer.
Mr Herrero is a highly experienced retail executive. For example, he previously spent 13 years at the Inditex Group. This is the retail giant behind popular brands including Zara, Pull & Bear, and Massimo Dutti.
During his time at Inditex, Herrero held numerous roles including Head of Asia Pacific and Managing Director Greater China and led the company's expansion through the Asia region. This includes rolling out 800 stores across multiple countries including China and India.
In addition, Mr Herrero was the CEO of global retail brand Guess for four years until 2019 and most recently the Chairman and CEO of international shoe manufacturer and retailer Clarks.
Management commentary
Mr Herrero appears up for the challenge of running Lovisa.
He commented: "This is an amazing time to be joining the Lovisa business, and I look forward to continuing to drive it forward with the same passion and momentum that has gotten the business to where it is today. I would like to thank Shane for agreeing to help ensure a smooth transition and for his exceptional efforts to lead the company to its current strong position, and I look forward to the great opportunity we now have to further drive the company's strategic goals."
Lovisa's Chair, Brett Blundy, was pleased with the appointment.
He said: "Shane's decision has provided us with the opportunity to appoint an exceptional global retailer and we are excited to announce the appointment of Victor Herrero as Global CEO. Victor has an exceptional track record of driving global expansion and leading complex global retail businesses and will help us to move to the next stage of the global growth strategy of the Lovisa business."
"Shane hands over the business in a very strong position and the Board is excited by the opportunity to continue the global expansion under Victor's leadership, backed by his extensive global retail experience. Victor will commence in the role of Global Chief Executive Officer as soon as practical subject to current COVID restrictions, and we are pleased Shane and Victor are committed to ensuring a smooth transition," Blundy added.
