Michaels Hires New CEO From Walmart--Update

By Sarah Nassauer and Chris Wack 

Michaels Cos. said it has hired a top e-commerce executive from Walmart Inc. to become the arts-and-crafts retailer's new 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 Michaels's board of directors, effective Jan. 6.

Michaels 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.

Shares of Michaels rose nearly 10% to $6.60 after the hiring was announced Friday.

Michaels also said finance chief Denise Paulonis has accepted a position at another company and will leave on Jan. 31.

Mr. Buchanan's departure from Walmart comes as the world's largest retailer is working to build up and make its online operations more profitable, as well as aligning them more closely with its stores. Mr. Buchanan moved into the role earlier this year and was seen as a key part of those efforts, 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, which was reviewed by The Wall Street Journal. "Keep moving forward with the plans in place," Mr. Lore wrote.

Write to Sarah Nassauer at [e-mail]

(END) Dow Jones Newswires

December 27, 2019 12:55 ET (17:55 GMT)

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