Home > Latest News > UPDATE: Former JB Hi Fi CEO Delivers Increased Revenues Then Quits

UPDATE: Former JB Hi Fi CEO Delivers Increased Revenues Then Quits

The former Group CEO of JB Hi Fi Richard Murray has quit Premier Investments where he was CEO for twenty-two months after joining the Solomon Lew controlled Company, the question now is whether he is set to stay in retail or become a politician.

The move comes as Premier Investments evaluates a possible demerger of some of its businesses, including brands Peter Alexander and Smiggle.

Premier said on Monday that the decision to undertake a review “recognises the increased scale of Premier Retail’s various businesses, and the substantial opportunities for each of them”. It hired UBS and Arnold Bloch Leibler.

A major investor in Myer, speculation mounted that Murray was joining Premier Investments in an effort to bolster the management experience of the business with a view to mounting a run at owning Myer.

Earlier today it was announced that Murray, a key player in the Liberal Party, will step down as the head of Premier Retail on September 15, and relinquished his executive director status from today.

John Bryce, Premier Retail’s long-standing chief financial officer, has been appointed as interim CEO.

During the past 12 months Murray has been responsible for lifting forecast earnings before interest and tax for the group’s retail business with the latest forecast being between $355 million and $357 million, compared to a consensus forecast of around.

Premier shares surged 12.46% per cent on the latest trading news.

I’s also emerged that Solomon Lew is considering splitting Premier into four separate companies by demerging sleepwear chain Peter Alexander, kids’ stationery shop Smiggle and Premier’s remaining retail brands, including Just Jeans, Portman, and Jacqui-E.

 

The AFR said today that where JB Hi-Fi is more of a traditional middleman retailer, having perfected the art of selling big brands at great prices, Premier is far more vertically integrated, in that it manages the design, sourcing, manufacture and distribution of fashion products that have a different shelf-life to electronics and whitegoods.

Murray was always open about the adjustment required in shifting from one model to the other.

Macquarie has put a valuation of $1.2 billion on Peter Alexander and $559 million on Smiggle, and a $248 million valuation on the remaining retail business.

Mr Lew told investors “It is business as usual” and he “understands Richard’s decision to step down”.

“The Premier board is focused on moving forward with its formal review as announced today, under the strong leadership of Mr Bryce and the senior management team, whilst continuing to focus on the first-rate retail execution that Premier is known for,” Mr Lew said in a statement.

The AFR has reported that the retailer group expects to report record global retail sales for the 52 weeks ended July 29 of $1.64 billion, up 9.7 per cent on fiscal 2022 sales.

Premier Retail now expects record earnings before interest and tax (excluding significant items) within a range of $355 million to $357 million, an increase of between 6 per cent and 6.6 per cent.

Additionally, management is currently considering a spin-off, of pyjamas brand Peter Alexander where sales have more than doubled from five years ago.

In March, Premier flagged it was considering overseas markets for the brand.

Peter Alexander plans to open 20 to 30 new or larger-format stores in the near-term in Australia and New Zealand.

Premier Retail’s apparel segment spans its five heritage brands: Portmans, Just Jeans, Jay Jays, Jacqui E and Dotti.

In June, The Australian Financial Review revealed multiple executives were leaving the business.

At this stage it’s not known whether Murray is going to stay in retail or enter politics for the Liberal party.



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