Esprit’s CFO resignation will hurt: BarCap
The CFO of Hong Kong’s largest-listed apparel company, Fook Aun Chew, has announced his resignation. It comes at a critical juncture for the clothing company.
Esprit's chief financial officer, Fook Aun Chew, has resigned from the company effective June 1 2012, citing an inability to meet new travel commitments at the clothings company.
Chew's resignation comes at an important time for Esprit given it is in the middle of executing its transformation plan after profits dived 98% last year.
The CEO Ronald Van der Vis said he plans to turn the retailer around by improving fashion designs to reboot earnings in Europe and, at the same time, doubling China sales in four years.
“While there is enough bench strength in the finance department, in our view, and while… Chew will stay on for at least another six months, we believe this news will be negatively received by the market,” wrote Vineet Sharma, equity research analyst at BarCap in note published yesterday (December 5).
“Losing a CFO at this critical juncture does not look good, no matter what the reasons behind it, in our view,” Sharma added.