Ralph Lauren, the American designer who built a huge fashion empire is finally stepping down as CEO.
Stefan Larsson is going to be the one taking over from Lauren. He was earlier an executive with H&M and is currently the president at Old Navy, the GAP brand which he helped revive. Old Navy is just one of the few good things GAP have going ever since the Swede Larsson took over back in 2012. It significantly increased his visibility in retail.
The change may also be considered as a way for Ralph to get his finances in order. Earnings for this upscale apparel company, known for the brand Polo, are currently getting pressured by a strong dollar & intense competition. The latest quarterly earnings of $ 1.09 per share was higher than estimated but revenue fell by 5.3%. The share price has fallen by around half in 2015.
During an interview, Lauren said that he would still be active in the company as chief creative officer & executive chairman. Larsson is going to be reporting to Lauren although Lauren said the relationship was more of a partnership.
Larsson is going to take over in November & will also be given a seat on the Board of Directors.
Most of the successful fashion brands have two partners, Calvin Klein & Barry Schwartz, Giorgio Armani & Sergio Galeotti, etc.
Lauren was one of the rare designers who did both. This decision to separate roles and have a professional managing the brand is a step in the right direction though. Lauren will still remain the biggest shareholder in the company.
The move was cheered by investors and the stock went up by 5% during after-hour trading.
Still a new CEO from outside of the company has surprised a few experts.
Benzamin H
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