Dive Brief:
- In another leadership shakeup, Torrid Holdings, the direct-to-consumer fashion retailer, appointed Tim Martin to COO and CFO starting Sept. 12. The company also named Hyon Park as CTO, according to a Wednesday press release.
- Martin will oversee Torrid's finance and operations, including its IT, store operations, customer service, real estate, logistics, distribution and supply chain functions. Park will manage the company's IT team, including software, infrastructure, security, governance and business intelligence.
- Before joining Torrid, Martin was previously the executive vice president and CFO of Guitar Center and has more than 25 years of experience at other companies like Lands' End, Gap, Disney and Coldwater Creek. Park spent the prior 20 years at companies like Belk, Tailored Brands and Gymboree, most recently as the CTO of Belk, according to the announcement.
Dive Insight:
Torrid is continuing its C-Suite reconfiguration as it prepares for financial headwinds.
Martin and Park's appointments follow a recent leadership change this past spring. In May, Lisa Harper became the company's CEO, and Michael Shaffer joined the company's board of directors after serving as CFO of PVH Corp. At that time, Liz Muñoz shifted from CEO of Torrid to chief creative officer.
Torrid highlighted Martin's experience as executive vice president and CFO of Guitar Center, where he managed the music retailer's accounting, finance, real estate, logistics and sourcing functions. According to the announcement, Martin will take over for Tanner MacDiarmid, who will transition from its interim CFO to a consultant for the company.
"As we continue to grow and scale our business, we are building a world-class leadership team to support our continued sustainable and profitable growth. I am very excited to welcome Tim who is a seasoned leader known for his analytical acumen, strategic orientation, and proven ability to drive results. His expertise will be invaluable to our operations, and he will be a valued strategic partner to me and the entire leadership team," Harper said in a statement. "I also want to welcome Hyon Park who will be joining us as our Chief Technology Officer. Hyon will be pivotal in helping build more robust technology and digital capabilities."
The company also updated its guidance. It expects its net sales to land between $335 million and $340 million, down from its previous expectation of $350 million to $360 million. The company adjusted its sales and EBITDA guidance for Q2 amid an uncertain macroeconomic environment, Harper said in a statement.
"Although our web traffic trends have been consistent, store traffic trends slowed in July and shipping disruptions caused by upgrades to our distribution platform during the quarter created unanticipated headwinds," Harper said in a press release. "The increased capacity in our fulfillment center is now operational and customers are receiving their orders as expected. Additionally, we were able to clear our projected levels of excess inventory and expect to have assortments in a balanced position by mid-September. Heading into the back half of the year, we remain focused on prioritizing margin through compelling new product, disciplined inventory management, and cost control through effective resource allocation."
Other brands and retailers have also combined the CFO and COO roles. Last month, True Religion named Sandip Grewal as its new CFO and COO, putting him in charge of the brand's streamlining of its finances and operations to reach revenue targets. Tapestry announced Thursday that COO Tom Glaser will retire on Oct. 1. In his place Scott Roe, the company's CFO since June 2021, will also take on the additional role of COO.
