Dive Brief:
- Ross Stores, Inc. on Thursday announced Chief Financial Officer Adam Orvos is retiring from the company on Sept. 30, according to a press release. William Sheehan, the company’s group senior vice president of finance, is set to replace Orvos on Oct. 1 and has been promoted to deputy chief financial officer in the meantime.
- Sheehan first joined Ross nearly 20 years ago, in 2006, and has held a variety of roles in the company’s finance department since then. Sheehan has more than 34 years of experience in the financial side of the retail industry, including 15 years with Lord & Taylor.
- As CFO, Sheehan will report to group president and Chief Operating Officer Michael Hartshorn and manage the company’s accounting, risk management, investor relations and other financial operations.
Dive Insight:
Ross’ latest leadership appointment follows a trend of the off-price retailer appointing senior talent from within to its C-suite.
Last September, the California-based company promoted two executives to lead its merchandising efforts across banners: Karen Fleming became chief merchandising officer of Ross Dress for Less and Karen Sykes was named chief merchandising officer of DD’s Discounts. With its latest internal appointment, Sheehan is ascending to the CFO sport after almost two decades with the company.
“Bill is a proven and talented finance executive with extensive managerial experience as well as a deep understanding of Ross,” Hartshorn said in a statement. “While Bill has reported to Adam over the past four years, he and I have worked closely together during his long tenure with the company, which will support a smooth transition.”
Though the off-price retailer has regularly tapped internal talent to take on executive roles, its new CEO is an outsider. James Conroy took on the CEO post earlier this month, replacing longtime chief executive Barbara Rentler. Meanwhile, Rentler transitioned into an advisory role with the company, where she will help guide its merchandising strategies until March 31, 2027.
Over the past year, Ross has continued to grow its brick-and-mortar store count as part of its plan to enter new markets. Last summer, the company said it opened 21 Ross locations and three DD’s Discount stores across 17 states. The store openings are part of its long-term goal of operating more than 3,600 locations.
The company’s store expansion and executive hires come as it braces for economic uncertainty that will affect its customer base. In its Q3 earnings report, the company said its net income rose from $447 million in 2023 to $489 million in 2024. Its sales rose slightly year over year, from $4.9 billion to $5.1 billion, which executives called a disappointing performance.
In an earnings release, Rentler attributed the sales slowdown to its low-to-moderate-income customers facing “persistently high costs on necessities pressuring their discretionary spending.” Looking back, the company also “should have better executed some of our merchandising initiatives,” she added.
