- Andy Higginson appointed chair effective 11 July
- Extensive board and international retail experience
- Difficult consumer backdrop
Sportwear retailer JD Sports Fashion (JD.) has appointed Andy Higginson as chairman of the group effective on 11 July 2022, after an extensive search process.
The news will come as a relief to shareholders after the shock departure of executive chairman and long-standing boss Peter Cowgill on 25 May. The shares rallied 2% to 124.4p in early trading.
Cowgill had led the group since 2004 after quitting as finance director in 2001, and turned around its fortunes. He left the group under a cloud of concerns around its corporate governance and risk management controls.
EXPERIENCED RETAILER
Higginson is highly experienced in the retail space with over 28 years of continuous non-executive board roles including over 15 years at Tesco (TSCO). He has also served on the boards of Unilever (ULVR), Guinness and Laura Ashley.
Interim Chair Helen Ashton commented: ‘Andy stood out as the best candidate with his extensive Board experience including as a Chair and his strong track record in the international retail sector.
‘It is a testament to the quality and attractiveness of JD that we have recruited Andy to the important role of Chair.’
EXPERT VIEW
Investment director at AJ Bell Russ Mould commented: ‘JD Sports has made the first step towards rebuilding its senior leadership team following the departure of executive chairman Peter Cowgill.
‘His role is to lead the board of directors and set high governance standards. This was something which was perhaps a weak point under the reign of Cowgill, given questions about why he had the joint chair and CEO role, as well as the circumstances of his exit - Cowgill left suddenly after a review of JD’s internal governance and controls.
‘Given how JD’s share price has slumped in recent months amid market worries about consumer spending and the surprise departure of Cowgill, Higginson will be under pressure from day one to try and improve the company’s reputation from a boardroom perspective, and to find the right person to lead the business.’
BUSINESS MOMENTUM STALLS
Higginson joins JD Sports at a critical time after the company said it expects no profit growth this year as consumers feel the squeeze from rising energy costs.
However, this follows an outstanding year to January 2022, when the company delivered record headline profit before tax and exceptional items of £947.2 million, more than double the prior year.
Disclaimer: Financial services company AJ Bell referenced in this article, owns Shares Magazine. The editor (Steven Frazer) of the article owns shares in AJ Bell.
