Naf Naf’s CEO Luc Mory leaves
Nicola Mira
The outlook is bleak for mid-range French fashion retailers. FashionNetwork.comNaf Naf
According to an internal memo sent to Naf Naf’s employees that FashionNetwork.com was able to read, Selçuk Yilmaz, the label’s president and owner via Franco-Turkish group SY, has taken over the role of managing director. Albéric de Rougemont, general secretary of the company based in Asnières-sur-Seine, France, David Froger, the commercial director, and CFO Eric Baradeau will also be leaving Naf Naf.
Mory himself has confirmed the news. He also reiterated, as he recently stated in an interview with FashionNetwork.com, that 2022 was an especially tough year: “We’re dealing with a very, very difficult situation. We were expecting a rebound in the first quarter of 2023, but this was not the case. Consequently, we spent several weeks analysing with our president how to significantly reduce costs in 2023, in order to deal with this juncture. Efforts needed to be made, and we discussed how my departure would be pertinent in this context. Selçuk Yilmaz is willing to take over the role of managing director. I will still be supporting Naf Naf in the coming months.” The company will therefore rely on its CEO to oversee day-to-day operations, while the posts of managing director and general secretary aren’t expected to be filled.
For the time being, the cost reduction plan is having a direct impact on some of the top executives, who are leaving the company, but it will also concern other areas.
“The label still enjoys a fine reputation, and has improved its visibility in recent seasons,” said Mory. “It’s performing well in Spain, where [Naf Naf] grew 26% last year, and 35% since the start of the current year. In Italy, where we have set up a subsidiary, growth is 20%. But we are concerned for France, which accounts for 75% of the business. Comparable sales recorded a double-digit slump in the first quarter. So, we need to adapt and rationalise operating costs. More than on employees, this means working on rents. Some lessors are helping, but not everyone is,” said Mory.
He also stated he has loved his time at Naf Naf, and commented on the label’s resilience, adding that he thinks the targets set at the start of the year remain relevant.
After recording a revenue of €170 million in 2022, Naf Naf is aiming for €185 million in 2023.
