Ashford.com, a luxury retailer of personal and corporate gifts, has promoted David Gow to chief executive officer, replacing Kenny Kurtzman, who has been named vice chairman of the Board of Directors. Gow was also appointed to the company's Board of Directors.
"Ashford has made great strides over the past two years under Kenny's
leadership," said Rob Shaw, chairman of the board and co-founder of the
company. "Kenny has been instrumental in making Ashford a success, and we are pleased that, as vice chairman, he will continue to play a vital role in
Ashford's future. Looking ahead, we believe the company is entering a new
phase, and new leadership will support our transition. The Board is confident
that David Gow can successfully continue Ashford's move from a company focused primarily on growth, to one focused on cash flow and the development of more profitable categories such as Corporate Gifts sales."
Gow has been chief financial officer since March 1999 and has led Ashford.com's Corporate Gifts Sales Division. "We plan to increase our focus on growing corporate sales while improving the efficiency of our retail business," said Gow. "We feel we made progress this quarter despite a generally sluggish retail environment. Same quarter, year over year sales growth is estimated to be approximately 18%, and our corporate business continues to grow and provide an important new, profitable business for us."
The company also reported preliminary financial information for the quarter
ended March 31. Ashford expects net sales of $14 million to $14.5 million, growth of 18%.. Gross margins will reach 17.5% to 18.5%, reflecting the impact of a targeted promotional offer that affected gross margins by 4%. The company said the promotion, implemented with one of Ashford's new corporate marketing
partners and continuing through June, resulted in the acquisition of approximately 8,700 customers during the quarter.
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