On Tuesday, European discount retailer Pepco Group (PCOP.WA) announced that CEO Trevor Masters would quit immediately without explanation.
The firm said that Andy Bond, head of the board of directors, would serve as executive chair and oversee the company until a new CEO is hired.
The company also lowered its full-year EBITDA projection, which is projected to be somewhat lower than planned but still in line with analysts’ consensus.
Erste Group analyst Krzysztof Kawa calculated that the profit warning indicates high single-digit EBITDA growth vs. the earlier “mid-teens” rise.
The retailer said it changed projections due to weaker-than-expected sales but plans to build 550 outlets this year.
Masters, a former Tesco executive, joined Pepco in 2019 and served as temporary CEO for a month before being appointed permanent CEO.
The Warsaw-listed business, which owns Pepco, Poundland, and Dealz, plummeted almost 4% in morning trade Tuesday at the bottom of Poland’s blue-chip index WIG20.
JP Morgan analysts saw the CEO’s immediate departure as a sign of a tough 6-12 months for the company.
“Management change with immediate effect may signal turbulence for the business in the near-term, but we do not see this as a negative development in the long run, expecting new leadership to adopt a more cost-conscious and returns-focused approach,” analysts said.
The shares fell 4.2% at 0819 GMT, bringing the year-to-date losses to over 25%.
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