Michaels Hires New CEO From Walmart, Shares Jump -- WSJ

By Sarah Nassauer and Chris Wack 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (December 28, 2019).

Michaels Cos. said it has hired a top e-commerce executive from Walmart Inc. to become the arts-and-crafts retailer's president and CEO.

Ashley Buchanan, a rising star at Walmart where he was most recently chief merchandising and chief operating officer for its U.S. e-commerce business, will succeed Mark Cosby at Michaels after a transition period ending in April. Mr. Buchanan will join the company's board of directors, effective Jan. 6.

Shares of Michaels rose 45% to $8.77 after the hiring was announced Friday.

The crafts retailer, which has about 1,260 stores in the U.S. and Canada, has faced sagging sales and in December lowered its sales outlook.

Michaels, which is based in Irving, Texas, said Mr. Cosby will continue to serve as chief executive until April, and will remain a member of the board of directors following the transition. He was named CEO in October, after serving on an interim basis since February.

Michaels also said finance chief Denise Paulonis has accepted a position at another company and will leave on Jan. 31. A spokeswoman for the retailer didn't respond to a request for comment.

Mr. Buchanan's departure from Walmart comes as the world's largest retailer is working to make its growing online operations more profitable, as well as aligning them more closely with its stores. Mr. Buchanan, who joined Walmart in 2007, was seen as a key participant in those efforts after moving into his latest role earlier this year, according to people familiar with the situation.

Walmart didn't immediately name his replacement, according to an internal memo from U.S. e-commerce head Marc Lore announcing the departure. E-commerce merchandising leaders will report to Mr. Lore in the interim, said the memo. "Keep moving forward with the plans in place," Mr. Lore wrote.

Write to Sarah Nassauer at [e-mail]

(END) Dow Jones Newswires

December 28, 2019 02:47 ET (07:47 GMT)

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