New boss announced at one of Manchester’s biggest business success stories
A new man is to take charge of the online fashion giant Boohoo.
The Manchester based firm has announced that Primark’s chief operating officer John Lyttle is take over as chief executive from founders Hahmud Kamani and Carol Kane.
Boohoo is on target for sales of £3bn across the globe and its revenues in the first quarter were £183.6m, an increase of 53%.
The new chief executive’s pay package will be heavily related to the growth of the business.
He will have an annual salary of £615,000 and an annual bonus of up to 150% of his annual salary.
During John Lyttle’s eight-year tenure at Primark turnover grew by 158% to over £7bn and operating profit increased by 116% to £735m.
His earlier career has included senior roles at Matalan and the Arcadia Group.
The appointment is a key part of Boohoo’s positioning for its next stage of growth and will be accompanied by a number of changes to the existing main board roles.
Mahmud Kamani, currently joint chief executive, will become group executive chairman with effect from 15 March next year.
His focus and responsibilities will focus on the long-term strategic direction and away from the day to day running of the business.
Carol Kane, currently joint chief executive, will remain on the board in an executive role and will assume the title of group co-founder and executive director.
She will continue to lead the vision for the group’s creativity and multi-brand strategy focussed around the positioning of the boohoo group’s brands. boohoo, boohooman, PrettyLittleThing and Nasty Gal and overseeing the development of the product proposition.
Peter Williams, who as non-executive chairman has overseen the Company’s transition from an unquoted company to one of the leading companies on AIM over an important period in the group’s development will be stepping down from his role.
The board intends to recruit a further independent non-executive director and will launch a search for the role imminently.
Mahmud Kamani and Carol Kane, joint chief executives of boohoo group, said: “We are thrilled to have secured a candidate of John’s calibre as our CEO.
“We have got to know John over a number of years and are convinced he has the necessary skills to complement what we already have and take the group on to its next stage of growth.
“Both of us remain totally committed to the business and will ensure a measured and careful handover.
“This is a hugely exciting time for the group as the fast fashion market continues to shift online and more and more customers across the globe are joining as customers of our brands.
“The group has experienced exceptional growth over the past few years, with turnover increasing 24 fold from £24.5m in 2011 to £579.8m for the year ended 28 February 2018 and we believe John is ideally placed to guide the group through the next stage of its growth; whilst he was COO at Primark, turnover increased from £2.7bn in 2010 to £7.1bn in 2017.
“Our next priority for boohoo is to ensure we have world class infrastructure and technology in place and we believe John is the right person to lead that journey.
“We would like to take this opportunity to thank Peter Williams for his great contribution to the group during his time as chairman. His wise counsel and years of retail experience have been invaluable during this period.”
John Lyttle said: “I have known Mahmud and Carol for a number of years and have watched the growth of the boohoo group with admiration.
“I am hugely excited to be joining the group at this key stage of its growth and capitalising on what is a global opportunity”
Peter Williams, non-executive Chairman said: “Like Mahmud and Carol, I am delighted to have secured the services of such an experienced international retailer as John Lyttle.
“The boohoo group is at a key moment in its development and combining John’s skills with those of Mahmud and Carol will enable a step change into a new era for the Group. I have very much enjoyed working with Mahmud and Carol and wish everyone at the Company every success for the future.”