- Boohoo’s CFO, Shaun McCabe, departs
- Stephen Morana appointed new CFO
- Boohoo faces challenges amid market turbulence
The immediate departure of Boohoo’s chief financial officer is the latest setback for the retailer following a turbulent 2023.
Shaun McCabe departed the firm ‘by mutual agreement’ on Tuesday, according to a shareholder statement from the Manchester-based company that owns Dorothy Perkins, PrettyLittleThing, and Karen Millen. McCabe had served in the capacity for all but two years.
Effective February 19, Boohoo has appointed former Betfair and Zoopla CFO Stephen Morana as his replacement.
From 2014 to 2017, Morana had been a non-executive director of the organization.
Morana, according to executive chairman Mahmud Kamani, is “well-known to Boohoo” for “assisting us during our IPO and early years as a PLC.”
Stephen’s wealth of experience with global digital businesses places him in an exceptional position to support the strategy in pursuit of our growth objectives; even though the company has expanded substantially since then, he continued.
Boohoo shares opened trading at 33.79p, a decrease of 0.5 per cent.
However, on Tuesday, Boohoo shareholders were also informed that the company’s annual profits are by market expectations.
Following a lockdown-induced growth during the Covid era, the group has endured a tumultuous trading period, with consumers returning to physical retailers and Boohoo experiencing higher prices and a depressed consumer environment.
Furthermore, allegations of unethical supplier treatment, including the breach of commitments to treat suppliers ethically.
In October, Boohoo shares reached their lowest level in eight years, following the company’s reduction of profit projections due to lacklustre sales.
Hedge funds anticipate a further decline in the companies’ fortunes as the group’s stock, like its rapid fashion rival Asos, ranks among the most heavily shorted in London.
Andrew Ashley’s retail conglomerate, Frasers Group, has been progressively increasing its ownership interest in Boohoo to capitalize on the decline in the stock price.
