Why are Lovisa shares jumping 6% today?

Let's see what was announced to the market this morning.

Lovisa Holdings Ltd (ASX: LOV) shares are on the move on Wednesday morning.

At the time of writing, the ASX 200 share is up over 6% to $31.11.

Ecstatic woman looking at her phone outside with her fist pumped.

Image source: Getty Images

Why are Lovisa shares jumping?

Investors have been buying the fashion jewellery retailer's shares today after it released an update on its leadership.

Firstly, as per its previous announcement, John Cheston has now joined the company as its global CEO and managing director, effective today.

Cheston was formerly the CEO of the Smiggle brand, which is owned by Premier Investments Ltd (ASX: PMV).

He is replacing Victor Herrero, who was CEO and managing director of Lovisa for almost four years. Herrero started with the company in October 2021 and stepped down at the end of last week on 31 May.

The outgoing CEO will now be able to focus on his director role with G-III Apparel Group Ltd (NASDAQ: GIII).

New appointment

Joining Cheston at the ASX 200 share will be Mark McInnes.

This morning, Lovisa announced the appointment of McInnes as its executive deputy chairman, effective today.

The company notes that he brings a wealth of experience and leadership to the role and is currently the Global CEO Retail & Consumer of BB Retail Capital. It is a private investment company that was started by Lovisa's chair, Brett Blundy.

The company also highlights that with a proven track record in retail, McInnes will play a key role in supporting the global CEO and executive team, the chairman and the Board in setting Lovisa up for its next stage of global growth.

BB Retail Capital currently owns 39% of the issued capital of the company.

Commenting on the appointment of McInnes as deputy chair, Lovisa chair Brett Blundy said:

Mark's extensive experience and proven track record of success in large Australian ASX listed retailers, combined with his leadership skills make him an invaluable member of the Board and Executive Management team. We are confident that his contributions will further strengthen our position in the industry and drive long-term value for Shareholders.

But the appointments may not be over. The company revealed that it is looking to add to its board. It said:

The Lovisa Board is constantly evaluating the skills and experience required of its Directors to best drive outcomes for all Shareholders. In addition to today's announcement the board is also currently considering the appointment of a new Independent Non-Executive Director to continue its commitment to board governance and oversight.

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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