E-commerce giant THG has hired Damian Sanders as its new chief financial officer amid a recent slew of negative earning reports and a collapse in share price.
Following a global search, the troubled British firm has landed on Sanders as the replacement for John Gallemore, who is moving over to the role of chief operating officer.
Sanders, who said he was “delighted” to be joining THG, served as an independent non-executive director from November 2020, which the company said has given him an “in-depth understanding of THG’s businesses, people and culture”.
THG boss Matthew Moulding offered up more praise: “Damian has played a key role since joining the group and board, chairing to great effect numerous important projects over the past two years, not least the recently delivered divisional reorganisation.
“Damian’s experience and energy will prove invaluable as we look to deliver the key initiatives planned across the group for 2023 and beyond.”
Sanders said he was excited to “help drive the group forward” as it continues to grow worldwide. Previously, he worked at Deloitte as a senior audit partner for more than 20 years.
On the appointment of Gallemore to chief operating officer, Moulding remarked that “John’s knowledge of the business is second to none, and the appointment of Damian will allow John to work closely with me on further evolving the commercial and operating models of each of our divisions.”
Gallemore, now chief operating officer, said his new position will enable him to work “more closely with Matt and the divisional CEOs in capitalising on the significant commercial opportunities ahead”.
Trouble for THG
The conglomerate, which owns premium skincare and makeup brands like ESPA and e-commerce websites such as Cult Beauty, is currently confronting an ugly year ahead.
Last week THG, formerly The Hut Group, warned of lower than expected 2022 full year profits in April, causing shares to buckle. Anticipated earnings were between £100-130m but they have now slid down to £70-80m. Over the past year, shares have dropped 63 per cent.
The trading statement reported that full year revenue grew 3.3 per cent to £2.25bn, missing its forecast of 10-15 per cent by a long stretch. THG cited postal disruptions around the Christmas period as contributing to the shortfall.
Despite the bad news, Moulding has high hopes for 2023 and said THG could widen its margins this year after saving roughly £100m and seeing price drops in ingredients for Myprotein products.
He commented: “Core commodity prices used within our nutrition division have seen significant deflation since their record highs in 2022, giving us confidence in significant profit progression as we move through the year ahead, against a much reduced group cost base.”