Kathmandu CEO Xavier Simonet resigns to head Austrade
Xavier Simonet will stay on at the adventure retailer while it looks for a new CEO, before taking up the senior public service job.
Xavier Simonet is resigning as chief executive of adventure retailer Kathmandu Holdings after more than five years in the role, during which he fought off a takeover and expanded internationally with the acquisition of the Rip Curl and Oboz brands.
Mr Simonet will leave the retailer to head the Australian Trade and Investment Commission, or Austrade.
Mr Simonet will remain with the company through his six-month notice period as it seeks a replacement CEO, or until the board decides to release him.
Chairman of Kathmandu Holdings, David Kirk, said the company was disappointed to lose Mr Simonet but understood his desire to take up the senior public service role.
“We wish him well in the important work he will undertake. Xavier has led Kathmandu Holdings through a period of growth and repositioning of the company,” Mr Kirk said.
“Kathmandu, Rip Curl and Oboz are three iconic brands which together create a world class outdoor adventure company, diversified by geography, channel to market and seasonality. “Xavier will remain with us for up to six months while we undertake a comprehensive search for his successor.”
Mr Simonet said: “I have had an awesome time at Kathmandu Holdings, where I have spent the last five immensely exciting years. The group has great brands, passionate teams and strong values. I am very grateful to our teams, to the board of directors, to our shareholders and to my chairman, David Kirk, for their support.”
Trade and Tourism Minister Simon Birmingham said Mr Simonet’s appointment as chief executive of Austrade comes at a critical time for helping businesses maintain global supply chains and diversify export markets.
“As our key agency for promoting Australian trade, investment and education to the world, and developing tourism policy, Austrade’s role in providing advice and support to Australian businesses has never been more important, as they continue to face enormous challenges,” Senator Birmingham said in a statement.
“Mr Simonet will bring proven and strong leadership to Austrade, as it plays its part in helping Australian businesses to navigate through and bounce back from this significant period of economic and trade uncertainty.
Mr Simonet’s appointment as the CEO of Kathmandu came at a difficult time for the retailer. Its depressed share price and struggling business attracted a takeover bid from New Zealand entrepreneur and retailer Rodney Duke through his listed retail company Briscoe Group.
The $312m takeover was pitched within days of Mr Simonet starting as CEO and the bid, priced at around $1.55 per Kathmandu share, failed, although Briscoe Group did end up as the company’s biggest shareholder.
Mr Simonet was then forced to trim Kathmandu’s bloated business and costs, reducing the company’s headcount and also closing down Kathmandu’s retail stores in Britain, which were never profitable.
He then set about on his own takeover plans, buying US adventurewear shoe retailer Oboz in 2018 for $77.7 million. Then, in 2019, Kathmandu made its biggest acquisition, entering the $11 billion surf wear industry with the purchase of privately-owned Rip Curl for $350m.
At Kathmandu’s annual general meeting last week, Mr Simonet said Kathmandu would focus on the organic growth of its leading outdoor equipment and apparel brands, led by the Kathmandu camping and adventurewear label, Oboz footwear and Rip Curl surf gear. But the COVID-19 crisis had cost it around $NZ135 million ($128.25m) in sales for 2020 and continued to pinch earnings into fiscal 2021.
He gave shareholders a trading update for the first few months of the new financial year which showed store closures, limited travel opportunities and lockdowns were still impacting its performance.
Mr Simonet said group total sales for the first quarter were up 72 per cent on prior year, benefiting from the transformational acquisition of Rip Curl.
He said group same store sales, including online, for the 16 full weeks ended November 15 were down 7.6 per cent adjusted for lockdown closures. Rip Curl was up 26.8 per cent, with retail stores trading strongly in all key global markets, where open. Kathmandu was down 26.8 per cent adjusted for lockdown closures, due to impacts from low footfall in CBD and tourist store locations, and lower demand for travel-related purchases.
Before joining Kathmandu Mr Simonet was the CEO of Radley, a London-based brand with a product range covering women’s handbags, luggage and a wide range of accessories. Prior to joining Radley, Mr Simonet was vice president and general manager, international for apparel & underwear group DB Apparel and prior to that he was the international director of Seafolly Group based in Sydney.
Mr Simonet began his career with LVHM, where he worked for 11 years in France, Scandinavia, Singapore, Australia, Hong Kong, and the UK and Ireland before returning to Australia to join Seafolly.
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