For some reason, the news that former Fairfax CEO and leading NZ businessman David Kirk had been appointed chairman of clothing retailer Kathamandu (KMD) didn’t please the market.
Yes, the wider market eased in afternoon trading to end down around 26 points on the ASX 200, but Kathmandu shares lost nearly 5%, or 17c, to end at $2.78.
Yesterday’s close was a near five month low. And while retail stocks have been sold off for much of the past month after downgrades from the likes of The Reject Shop and Supercheap, good reports have come from Country Road and JB Hi Fi.
But to no avail, investors currently have a set against retailers and yesterday’s news didn’t improve sentiment for Kathmandu.
KMD 1Y – Kathmandu shares down sharply after new chairman named
Mr Kirk joined the board last November and will replace John Harvey, who had been acting chairman since March last year.
"I have been impressed by the results achieved by the company since it listed in 2009, and in particular the significant progress it has made in growing its online sales through Kathmandu’s own platform and global marketplace websites.
"I look forward to contributing to the further development of Kathmandu’s growth strategy," Kirk, a former All Black captain and ex-Fairfax Media chief executive, said in yesterday’s statement.
Mr Kirk holds a number of other directorships. He is Chairman of Trade Me Group Limited (which Fairfax used to own under him), a position he has held since October 2011 when Trade Me listed on the NZX and ASX.
Since July 2009 he has been the Chairman of Hoyts Group Limited. Mr Kirk is also the co‐founder and Managing Partner of Bailador Investment Management, a Director of Bailador portfolio companies and a Director of Forsyth Barr Group Limited.
Yet that impressive CV didn’t impress investors.
