Shares fell after it announced on Tuesday the appointment of its billionaire founder’s 37-year-old daughter as its new chair, with Spanish clothing behemoth Inditex, which owns Zara.
The company, which has more than 6,500 shops around the world under brands ranging from Zara and Pull & Bear to Massimo Dutti, Bershka and Stradivarius, is currently controlled by 85-year-old Amancio Ortega, who started the business in 1963 and is today part of Spain. Richest person.
His daughter Marta Ortega will take over as president from April 1.
The firm, which has a market cap of €88 billion, said the move was the completion of a “generational” management handover process that began in 2011.
The news prompted a stock sell-off at lunchtime Tuesday, and shares were down 5.7% as of 2 p.m.
In the declaration of succession, Ortega said: “I have lived and breathed in this company since childhood.”
She continued: “I have always said that I will dedicate my life to building on my parents’ legacy, looking to the future but learning from the past to serve the company, our shareholders and our customers where I need them most.” .
“I’m deeply honored by the trust that’s placed in me, and very excited about the future that we’re all about to start together.”
Unlike his predecessor in the role, Pablo Isla, Ortega will not be acting president.
The current General Counsel and Board Secretary, Oscar García Messiras, will become CEO immediately.
Analysts at Kepler told the BBC they believe “the timing is not the best” for the announcement, as “we believe that both Marta Ortega and CEO Oscar Messiras have the ability to steer this massive monster.” There is a lot to prove in the midst of the COVID crisis.”
Who is Marta Ortega?
Marta Ortega, also known as Marta Ortega Perez, is 37 years old.
An experienced businessman, he has worked in various sectors of Inditex Group for the last 15 years.
The company said Ortega has “led in strengthening Zara’s brand image and fashion proposition” in her time with Inditex, and she will continue to oversee it in her new role as chair.
She has developed campaigns with big names from Steven Meisel to Fabian Baron, Karl Templar and Luca Guadagnino, and helped launch statement collections by Zara including Charlotte Gainsbourg.