Next's veteran fashion boss Christos Angelides has quit to take up a new job trying to turn around troubled American brand Abercrombie & Fitch.
The surprise departure is a blow for Next boss Lord Wolfson because, although Angelides keeps a deliberately low profile in the industry, he has been a key figure in the retailer's long track record of success which has culminated this year in Next's profits overtaking Marks & Spencer for the first time.
The defection continues the changing of the guard in what has been one of the retail industry's most stable management teams, which began with resignation of property director Andrew Varley last year and continued last month when finance director David Keens announced his retirement after a 23-year stint.
The new job promises a culture shock for Angelides, a West Bromwich Albion fan who has been based at Next's Leicester headquarters for the past 28 years. He is relocating to the US to take charge of the troubled Abercrombie & Fitch (A&F) brand which, unlike Next, uses topless male models with six packs as "greeters" at the entrance to its shops and blasts pop music at its teenage shoppers.
The US company said Angelides, 51, would be brand president of A&F and Abercrombie Kids brands, which together account for half the group's $4.1bn (£2.4bn) sales. He will report to A&F chief executive Mike Jeffries and have overall responsibility for the product ranges and the financial performance of the brands.
"We are excited to welcome Christos to the Abercrombie & Fitch team and to deepen our bench of senior leadership talent," said Jeffries. "His experience with all aspects of running a business made him the perfect candidate for this newly created role."
Independent retail consultant Richard Hyman said he was surprised by Angelides' decision. "Abercrombie is one of those brands with its best days behind it," he said. "He could have had any retail job. He's done an outstanding job at Next and been at the top of headhunters lists for the last 10 to 15 years. He could have been running M&S's clothing business many times over."
After studying business and economics at Leicester's De Montfort University, Angelides joined Next as a trainee menswear buyer in 1986. He the board in 2000 with the title of group product director with overall responsibility for all aspects of the design, buying and merchandising of its products. He is a member of the tightknit management team – Wolfson has also given more than 20 years' service – nicknamed the Enderby Family after the retailer's Leicestershire headquarters.
The pay package being offered by A&F will be substantial as Angelides is already well rewarded at Next. Last year, he earned £6.6m – including a £2,000 Next clothing allowance. That was more than Wolfson, who opted to share one of his three bonuses with staff. Angelides also owns a £7m stake in the company and is likely to collect millions of pounds worth of performance-related shares albeit at the remuneration committee's discretion.
Angelides said Abercrombie & Fitch was a brand "with global appeal and a clearly defined aesthetic". But he has a tough job on his hands as the retailer's share price has slumped since 2011 as teenagers turn their backs on the preppy uniform of logoed joggers and hoodies. The global group, which also owns the Gilly Hicks and Hollister brands, has 1,000 stores.
Next, which has more than 500 stores, made profits of £694m on sales of £3.7bn last year. It said Angelides had stepped down from the board with immediate effect but would remain working within the business until he leaves in September.
Next's shares lost £1.10p to closed down nearly 2% at £65.15.
"Next is a machine and I mean that in a positive rather than a pejorative way," Hyman said. "You don't achieve the consistency of performance Next has without a rock solid operating model."
A statement from Next said: "Christos has made a huge contribution to the group in his 28 years of service and the board wish him success in his future endeavours." He would not be replaced on the plc board as it remained balanced with four non-executive directors, four executive directors and an independent chairman in situ, the company said.
