B&M has named DFS Furniture’s chief financial officer Mike Schmidt as its new finance boss.
Schmidt will succeed group CFO Alex Russo, who will step up as chief executive officer of the discount retailer.
The company said Schmidt’s starting date would be announced shortly and is expected to be no later than 3 January 2023.
New appointment: B&M has named DFS Furniture’s chief financial officer Mike Schmidt as its new finance boss
Schmidt’s base annual salary will be £450,000, and he will receive pension payments equal to 3 per cent of that, ‘plus other standard contractual benefits’, the group said.
He will be eligible to participate in the B&M Annual Incentive Plan and the B&M Share Option Long Term Incentive Plan.
Schmidt will also receive a non-pensionable payment of up to £50,000 for the first year of employment for travel and overnight accommodation, the retailer said.
In May, B&M said Russo would replace its long-time boss Simon Arora, who will be retiring after more than 17 years.
Schmidt, who has held the position of financial chief at furniture retailer DFS for three years, had previously held corporate finance roles at investment banks like Citi and UBS.
He said: ‘I am excited by the opportunity to join B&M. It is a business that has experienced a period of rapid growth over recent years and has a clearly defined growth strategy for the future. I am very much looking forward to contributing to its ongoing success.’
Peter Bamford, the group’s chairman, said: ‘I am delighted that Mike has agreed to join B&M as Group CFO.
‘His previous roles in both retail and investment banking will bring valuable experience and insight to the Board alongside the continuity provided by Alex Russo’s appointment as future CEO. I look forward to working closely with Mike over the coming years.’
Like other retailers, B&M could face turbulence this year as households cut back on spending amid the cost of living crisis. Back in May, B&M warned that its full-year profit margins would be hit.
The group said in its preliminary annual results report in May: ‘With respect to gross margin, the past two years have seen very limited end of season markdown activity on Seasonal categories, due to the high rate of sell-through.
‘Looking into FY23, some level of markdowns are expected to return and there may be an adverse impact from category mix as customers shift spending away from more discretionary higher margin General Merchandise categories in favour of Food and FMCG products.
‘As a result of this gross margin dilution, B&M UK adjusted EBITDA4 margin is expected to step back between 70 to 130 bps but to remain structurally higher than pre-pandemic levels.’
B&M shares were down 0.93 per cent or 3.40p to 362.20p this afternoon, having fallen over 36 per cent in the last year.
