The Ralph Lauren Corporation has announced that its 75-year old founder and chief executive Ralph Lauren will step aside to make way for new blood at the New York-based fashion house. Stefan Larsson, former Global President of Old Navy, and, according to Ralph Lauren, “one of the most successful executives in the fashion industry” will take the reins come November.
Larsson spoke well of Ralph Lauren’s “creativity and
singular vision”
Lauren is to remain the company’s single largest shareholder and will continue to play a major role in the company’s financial turnaround, both as an executive chairman and chief creative officer. “My job is to think always about the future of our company and how to move it forward,” were his words, in a company news release. “Stefan Larsson is exceptionally talented, and he will bring our company a fresh and exciting global perspective.”
Larsson spoke well of Ralph Lauren’s “creativity and singular vision” in the same statement, adding: “I believe the company has tremendous potential to continue expanding in the global marketplace as it broadens its appeal to all consumers.”
Larsson will be leading a company that last year made $7.5bn in sales. However, he will also be leading one whose shares have been tumbling in recent months, worst in February when it suffered a more-than-18 percent single day decline. Net revenue in the first quarter, ending June 27, was down five percent on the year last, and the fashion house earlier this year lowered its sales forecast for the fiscal year.
The company’s struggles are due mainly to heavy discounting at some of its major rivals, and foot traffic at its stores has suffered as a result. Shareholders will be hoping that Larsson, who added $1bn in sales in his three years at Old Navy and was part of the team at H&M that increased sales from $3bn to $17bn, will instigate a change of fortunes for the iconic brand.