Next month, a new CEO is set to take over at Lovisa Holdings Ltd (ASX: LOV).
Shareholders may be wondering whether a change in management can send Lovisa shares to new heights.
While the past 12 months have been rocky, with the share price down 14%, the fast fashion retailer has shown signs of recovery, with Lovisa shares up more than 30% since 7 April.
Zooming out, Lovisa shares have been a spectacular long-term investment, rising 278% over the past 5 years.
Where to from here?
Lovisa CEO Victor Herrero has now officially stepped down. Herrero, a veteran of Spanish retail giant Inditex (which owns the Zara brand), joined Lovisa in December 2021.
Lovisa shares have performed well under his leadership. The number of Lovisa stores has almost tripled, growing from 350 in 2021 to over 900.
However, this hasn't come without controversy. Last year, shareholders voted against Lovisa's pay report for a third year running and pushed back on Herrero's salary. In 2024, Herrero was the sixth highest paid CEO on the ASX. He received $13.97 million in reported pay, but took home $40.93 million when also accounting for the market value of shares and options granted in previous years that had vested.
On 4 June, former Smiggle boss John Cheston will take on the CEO and Managing Director role.
Smiggle is owned by Premier Investments (ASX: PMV). Along with Peter Alexander, it is one of two fast-growing chains in Premier's portfolio.
Who is incoming CEO John Cheston?
Having been at stationary brand Smiggle for 12 years, Cheston comes with a wealth of retail experience which could trigger a new era of growth for Lovisa.
However, Cheston isn't without controversy himself.
Last year, he was sacked from Smiggle.
The Australian Financial Review reported that Premier Investments sacked Cheston after he inappropriately interfered in human resources investigations.
At the time, Cheston had denied any wrongdoing and said he had flagged his intention to step down and join Lovisa.
Commenting on Cheston's appointment last year, Lovisa Chairman Brett Blundy said:
With a wealth of retail experience and a proven track record of success, John is poised to take Lovisa to even greater heights….Get ready for a new era of operational excellence, growth, innovation, and excitement under his leadership.
As the founder of Lovisa, as well as the majority shareholder (owning around 40% of the company), Blundy's view is certainly worth listening to.
