Wesfarmers Ltd (ASX: WES) shares are outperforming on Thursday, up 0.71% to $74.08 per share, while the benchmark S&P/ASX 200 Index (ASX: XJO) is up 0.26%.
The diversified conglomerate issued an update today regarding its management team.
Let's find out what's happening.
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Wesfarmers shares higher amid management change
Wesfarmers has announced the retirement of its Kmart managing director today.
Ian Bailey will retire from his role in April next year. However, he will stay on with the Kmart Group to ensure a smooth transition, and will also serve as Chair of Kmart's in-house brand, Anko Global.
Bailey's successor is Aleksandra Spaseska, who has worked at Wesfarmers since 2008 and has served as Kmart Group's chief financial officer (COO) since March 2020.
Effective today, Spaseska will step up to the role of deputy managing director of Kmart Group. She will become managing director on 1 April.
Prior to becoming COO, Spaseska held senior divisional and corporate executive roles at Wesfarmers.
This included general manager of investor relations and several senior operational roles at Target.
What did the company say?
Wesfarmers Managing Director Rob Scott said:
Aleks brings deep knowledge of the Kmart and Target businesses together with strong commercial acumen.
Working with Ian, Aleks has played an important role in key strategic initiatives within Kmart Group, including the restructuring of Target and transformation activities in data and digital, global sourcing
and supply chain.
Scott said Bailey had played an instrumental role in the transformation of Kmart.
He has been a pivotal figure in Kmart's growth, creating a world-class product development company and trusted brand.
In recent years, Ian has led important strategic moves to take Anko into new markets and simplify and strengthen Target.
How has the Wesfarmers share price performed this year?
The No. 1 ASX consumer discretionary stock has had an incredible run in 2024.
Wesfarmers shares have risen by 28.9% in the year to date compared to an 11.25% uplift for the ASX 200.
Goldman Sachs has a neutral rating on Wesfarmers shares with a 12-month price target of $69.50. This implies a potential 6.2% downside for investors in the new year.
James Nicolaou from PAC Partners says it "may be prudent to consider taking some profits" at today's share price.
The consensus rating among 16 analysts on the CommSec trading platform is a moderate sell. Seven rate Wesfarmers shares a strong sell, and only one rates the stock a strong buy.
According to CBA data, Wesfarmers shares are trading on a price-to-earnings (P/E) ratio of 31.21x.
