On Tuesday, women's clothing retailer Cache (NASDAQ:CACHQ) announced that Chairman of the Board and CEO Thomas Reinckens will resign from both roles. Concurrently, the company has poached a new chairman and CEO from rival Limited Brands (NYSE:LB).
In a press release describing the twin announcements, Cache lauded the 30 years of retail, merchandising, and product development experience of its new boss, Jay Margolis. Most recently, Margolis ran the Express and Limited Stores businesses for Limited Brands. Prior to that, he was president and COO at Reebok.
Commenting on his new job, Margolis called Cache "a unique brand that has a loyal customer base," and promised to make it "a great retail brand." Backing up his stated confidence, Margolis said he will invest $1 million in new Cache shares, buying one out of every eight shares the company is issuing as part of a "rights offering" it announced this morning. In so doing, he's taking a bit of a leap of faith.
In separate news, Cache preannounced Q4 earnings results today, saying it believes comparable-store sales have declined 0.7% in the quarter that ended Dec. 29, that total sales were down 3.3%, and that the company incurred a pre-tax loss of anywhere from $4.8 million to $5.1 million.
Cache shares are down 2.4% in early trading, at $2.80 a share, but it's unclear whether it is in response to the management shakeup or the earnings warning.
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