How “operational challenges” ousted another CEO

Tom Krulis replaced after Godfrey’s after first half results.

The failure to capitalise on the significant 60% market shift away from barrel vacuum cleaners to stickvacs because of the late arrival of the product range has negatively impacted on Godfreys’ bottom line, according to Godfrey’s chairman Rod Walker in a statement to the Australian Securities Exchange (ASX) today.

godfreys_wideweb__470x314,0Unaudited figures showed net profit for the six months to December 30 would be between $4.3 million and $4.5 million, compared to $6.4 million for the prior corresponding period.

It cut its full-year profit forecast from $12.9 million to between $8.5 million and $9.2 million

“Fundamentally, the Godfreys’ business is extremely robust and the Board is confident that with new leadership and a refreshed approach, we can restore Godfreys’ financial performance and re-position the company for future growth,” Walker added.

The fallout has seen CEO Tom Krulis replaced by Kathy Cocovski (pictured) who will start with the company on January 27.

However Krulis will continue as an executive director with responsibility for the company’s international operations (including the Vorwerk product development) business and product development. Walker said the company was “pleased that he will remain an executive director of the business.”

Cocovski has worked in retail since 1978 and in 2010 joined Just Jeans as a director, where she shifted the operating model from a strong retail presence to great online contribution and hybrid clearance outlets.

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