At a Glance

  • American Eagle Outfitters (AEO) has hired Ravi Thanawala — who resigned Tuesday as Papa John's International's chief financial officer — to replace longtime finance chief Michael Mathias, effective Aug. 3. AEO announced the news Wednesday in a securities filing and press release.
  • Pittsburgh, Pennsylvania-based AEO said Mathias, who served as CFO for six years and held other roles during his 25-year tenure at the retailer, will transition from his CFO and principal financial officer roles to a non-executive position as strategic advisor to CEO Jay Schottenstein.
  • “Mike's ties to AEO run deep,” Schottenstein said in a statement in the press release. “During his tenure, he successfully guided our organization through a rapidly changing retail landscape and a period of significant growth, which is why I asked Mike to serve as my strategic advisor.”

Deep Dive

Thanawala's sudden departure comes three years after he joined the Louisville, Kentucky-based pizza chain, where he arrived from Nike. He notified Papa John's on Friday that he would resign as CFO and president of North America to take a position at another company, according to a filing with the U.S. Securities and Exchange Commission.

Thanawala played a key role in the restaurant chain's turnaround efforts, as the company sought to reposition and restore sales growth through operational improvements, and he also briefly served as interim CEO for several months in 2024, according to CFO Dive's sister publication Restaurant Dive.

Papa John's International said in the filing that Thanawala will not be entitled to any severance and appointed Christopher Collins, senior vice president of corporate finance and chief accounting officer, as interim CFO effective June 30 while the company searches for a new CFO. The company said his departure was not due to any disagreement with the company on policies, operations, or practices.

At AEO, Thanawala's compensation will include a $1 million annual base salary, and he will also receive a signing bonus consisting of a $1 million cash bonus and restricted stock unit awards. According to the filing, the bonus is related to equity awards, bonuses, and other compensation he will forfeit from his previous employer.

Thanawala is joining a company facing some headwinds. American Eagle brand first-quarter comparable sales fell 2% year over year, and despite a marketing collaboration with actress Sydney Sweeney, the company has recently struggled with sales of women's bottoms — pants, skirts, and shorts — CFO Dive's sister publication Retail Dive reported.

Last year, an advertising campaign by the teen retailer sparked backlash, igniting debates about race and beauty standards, the Associated Press reported.

On Wednesday, AEO also reaffirmed its second-quarter and full-year financial guidance.