Ex-Neiman Marcus Exec Is Tapped to Head St. John Knits

Upscale women’s clothier St. John Knits International Inc. is turning over the reins to an outsider for the first time, tapping a former Neiman Marcus executive for the top job.

H.W. Mullins, 49, will succeed Robert E. Gray, who has been chief executive since he and his wife, Marie, founded the company 39 years ago. Gray, 75, will remain chairman and is expected to continue to play an active role in the company.

Marie Gray, 64, will retain her role as chief designer. Kelly Gray, 34, the company’s signature model who was once expected to succeed her father as chief executive, will continue as president and creative director.

The transition is the latest of several major developments at the company in recent years. In 1999, the Gray family joined with Vestar Capital Partners to buy back the publicly held St. John for $522 million.

Vestar’s managing director Jim Kelley, said St. John has been a strong performer since the deal.

The decision to relinquish the chief executive’s position “was Bob’s call,” Kelley said. “It wasn’t board initiated, it wasn’t Vestar initiated, it wasn’t anything other than Bob Gray saying this is the time.”

Indeed, it was Mullins’ availability that prompted Gray to act, Kelley said. The two men had developed a working relationship over the past several years as Neiman Marcus increased its orders for St. John’s stylish knit outfits.

“Bob has said for some time he’d like to bring in some help, someone who could ultimately succeed him,” Kelley said. “When [Mullins] became available, Bob said, ‘This is our person.’ ”

In a prepared statement, Robert Gray praised Mullins’ experience.

“Not only has he compiled an impressive track record as an operating executive and a merchant, but he has also demonstrated the ability to develop managerial talent and motivate employees to perform,” Gray said.

Reached at his home Thursday, Gray said he was recovering from dental surgery and declined to comment further.

Mullins, who will be moving to the area from Dallas, could not be reached for comment. He will assume his new duties Feb. 1.

The Grays launched their business from a garage after Marie St. John bought a knitting loom and began making Chanel-like outfits. Gray began selling his then-fiancee’s designs to department stores. By 1969, the company had sales of $1 million.

Today, retail sales of St. John products at Neiman Marcus stores alone are $80 million to $100 million annually, Kelley said. He declined to give specifics about the company’s overall sales or earnings. But he said business is strong.

“The company has done everything it said it would do and more,” he said. “We just finished the best year ever in the company’s history.”

Vestar, which usually holds its investments for five to 10 years, has no near-term plans to take the company public again, Kelley said.

“We’re all quite pleased to have it as a private company,” he said.

Mullins joined Neiman Marcus Group Inc. in 1991 as vice president, divisional merchandise manager of its Neiman Marcus Stores division. He assumed several other titles before being named chairman and chief executive of Neiman Marcus Stores in February 2000, a position he held only until Jan. 1.

At the time, he said he was leaving to pursue a career and lifestyle change, according to news accounts.