Ralph Lauren Is Stepping Down As the CEO of the Fashion House
Have you heard that Ralph Lauren is stepping down as a CEO of the fashion house?
We did hear and we found out some spicy details. Stay with us until the end!
Ralph Lauren, the designer that changed the way we dress, has stepped down as a chief executive of the fashion company with the same name.
The company he founded nearly 50 years ago, will be in the care of Stefan Larsson, the president of the Gap-owned budget chain, Old Navy.
Ralph Lauren, whose net worth is estimated by Forbes at US$6.4 billion, might be stepping down as the CEO, but that doesn’t mean he won’t be around to oversee the company’s creative look and strategy.
Stefan Larsson, will need to report periodically to the company founder, as Ralph L. will still be there to overlook certain aspects of the fashion brand.
This announcement comes after reports saying that the company has been struggling to boost profits as a stronger dollar reduces the value of sales from outside the US.
Ralph Lauren, who will be 76-years-old this October, says Larsson would be in charge of growing future sales.
It seems that Mr. Larsson has experience with these types of things as the sales at Old Navy rose with 8% in 2014, under his leadership.
Before taking over Old Navy, he worked for the Swedish brand H&M for 15 years.
Speaking of his replacement, Mr Lauren said: “He understands what dreams are. In this business, it’s about dreams because you are dreaming ahead and you’re about progress and change and newness.”
Now, the company’s shares have been rising more than 11% on Wednesday following Tuesday’s announcement.
Odeon Capital analyst Rick Snyder said the change in chief executive was “positive” and “just a natural progression.”
He thinks Mr Larsson’s background will help the Ralph Lauren brand to reorganize and create greater efficiencies in their supply chain.
Lauren’s fashion empire includes some 25 brands including Polo, Club Monaco and Denim & Supply.
The company makes clothing, accessories, furniture, home decor items and footwear under its labels.
Let me remind you that Ralph Lauren started the Polo brand in 1968, and started by designing ties. Then in 1972 he made his signature short-sleeved shirts with the logo of a polo player.
Later, Ralph Lauren has expanded into women’s clothing, sheets, towels and furniture, and now they also have restaurants.
You think that Ralph did a good thing by stepping down as the CEO?