Dive Brief:
- American Eagle Outfitters has snapped up Ravi Thanawala — who resigned Tuesday from his post as CFO of Papa John’s International — to succeed long-time finance chief Michael Mathias, effective Aug. 3, AEO announced Wednesday in a securities filing and press release.
- The Pittsburgh, Pennsylvania-based AEO said Mathias, who has served six years as CFO and previously held other roles over the course of his 25 years at the retailer, will transition from CFO and principal financial officer to a non-officer role as a strategic advisor to CEO Jay Schottenstein.
- “Mike’s history with AEO runs incredibly deep,” Schottenstein said in a statement in the release. “Throughout his tenure, he has successfully guided our organization through a rapidly evolving retail landscape and a period of significant growth, which is why I’ve asked Mike to step into the role of strategic advisor to me.”
Dive Insight:
Thanawala is abruptly exiting the Louisville, Kentucky-based pizza chain three years after he joined the company from Nike. On Friday, he informed Papa John’s he would resign from his roles as CFO and president, North America to take a role with another company, according to a filing with the Securities and Exchange Commission.
Thanawala played a key role in the restaurant chain’s turnaround efforts as it looked to reposition itself and resume sales growth through operational improvements, and also briefly served as interim CEO for several months in 2024, CFO Dive sister publication Restaurant Dive reported.
Papa John’s International said in its filing that Thanawala will not be entitled to any severance benefits and appointed Christopher Collins, SVP of corporate finance and principal accounting officer, as interim CFO effective June 30 as it searches for a new CFO, according to the filing. The departure was not a result of any disagreement with the company related to its policies, operations or practices, the company stated.
At AEO, Thanawala’s compensation will include an annual base salary of $1 million, and he will receive a sign-on award composed of a $1 million cash bonus and a restricted stock unit award. The bonus is related to equity awards, a bonus and other pay he will forfeit from his previous employer, according to the filing.
Thanawala joins a company facing some headwinds. The American Eagle brand’s first quarter comparable sales dropped 2% year-over-year, and despite its marketing tie-up with actress Sydney Sweeney, the company is struggling to sell women’s bottoms — pants, skirts and shorts — more recently, CFO Dive’s sister publication Retail Dive reported.
Last year the teen retailer's ad campaign drew a backlash, sparking a debate over race and beauty standards, the Associated Press reported.
On Wednesday, AEO also reaffirmed its second quarter and full-year financial guidance.
