Michaels Hires New CEO From Walmart, Shares Jump -- WSJ
December 28 2019 - 3:02AM
Dow Jones News
By Sarah Nassauer and Chris Wack
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 28, 2019).
Michaels Cos. said it has hired a top e-commerce executive from
Walmart Inc. to become the arts-and-crafts retailer's president and
CEO.
Ashley Buchanan, a rising star at Walmart where he was most
recently chief merchandising and chief operating officer for its
U.S. e-commerce business, will succeed Mark Cosby at Michaels after
a transition period ending in April. Mr. Buchanan will join the
company's board of directors, effective Jan. 6.
Shares of Michaels rose 45% to $8.77 after the hiring was
announced Friday.
The crafts retailer, which has about 1,260 stores in the U.S.
and Canada, has faced sagging sales and in December lowered its
sales outlook.
Michaels, which is based in Irving, Texas, said Mr. Cosby will
continue to serve as chief executive until April, and will remain a
member of the board of directors following the transition. He was
named CEO in October, after serving on an interim basis since
February.
Michaels also said finance chief Denise Paulonis has accepted a
position at another company and will leave on Jan. 31. A
spokeswoman for the retailer didn't respond to a request for
comment.
Mr. Buchanan's departure from Walmart comes as the world's
largest retailer is working to make its growing online operations
more profitable, as well as aligning them more closely with its
stores. Mr. Buchanan, who joined Walmart in 2007, was seen as a key
participant in those efforts after moving into his latest role
earlier this year, according to people familiar with the
situation.
Walmart didn't immediately name his replacement, according to an
internal memo from U.S. e-commerce head Marc Lore announcing the
departure. E-commerce merchandising leaders will report to Mr. Lore
in the interim, said the memo. "Keep moving forward with the plans
in place," Mr. Lore wrote.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
December 28, 2019 02:47 ET (07:47 GMT)
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