Dive Brief:
- Craft store Michaels reorganized its C-suite and promoted Scott Lindblom to EVP and CIO, according to a company announcement Thursday. He previously served as SVP and CIO.
- Limblom will oversee Michaels' IT, including "the development and implementation of technologies" for enhancing customer and business partner experiences, according to the company.
- Lindblom came to Michaels in 2014, after nearly a decade at Ross stores in various IT roles and as senior director of supply chain systems for Best Buy, according to LinkedIn.
Dive Insight:
Michaels is undergoing a C-suite DIY.
Along with Lindblom, the company appointed Vidya Jwala to the newly-created chief customer officer. Michaels also promoted Holly Shaskey-Platek to chief human resources officer.
In February, Michaels announced it reached a mutual agreement with CEO Chuck Rubin to "transition out of his role as CEO," effective April 1. While the board continues a search for a permanent replacement, Mark Cosby is interim CEO and director.
Earlier this year Michaels reported a drop in net sales, from $1.9 billion to $1.8 billion, saying the decrease was due to the extra week included in the previous quarter. But net income dipped 11% in Q4 2018, with Michaels earning $181.4 million compared to $203 million the year prior.
At the time of the Q4 earnings, Michaels was coming off the momentum of holidays sales, boosting the prior quarter's earnings. The company was also riding out the closure of its Aaron Brothers and Pat Catan's stores, contributing to its losses.
In Q1 of this year, the company announced its intention to invest about $135 million, partially to technology. The technology projects included e-commerce support, digital platforms and new and relocated stores.
Capital expenditures for Q2 were about $32 million of the $135 million investment, said Denise A. Paulonis EVP and CFO, during Q2 2019 earnings call.
