Ralph Lauren, the US designer who built a $9bn fashion empire, will step down as chief executive from the company that bears his name as the peddler of pony-emblazoned polos charts a future beyond its founder.
The company, which brought preppy sportswear to the masses, revealed Stefan Larsson, global president of Gap division Old Navy, will take the helm in November.
Mr Larsson is credited with restoring Old Navy’s fortunes and turning it into Gap’s largest brand, accounting for $6.6bn of the group’s $16.4bn in revenues in its latest fiscal year.
Mr Lauren, who showed his latest collection in New York this September, will remain executive chairman and creative chief.
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“My job is to think always about the future of our company and how to move it forward,” he said. “We have had tremendous success expanding the Ralph Lauren brands around the world and creating a great management team. Now, all the pieces are in place to position our business for continued growth.”
The appointment of Mr Larsson, who spent 15 years at Swedish retailer Hennes & Mauritz, follows a tumultuous journey for most US retailers, including Ralph Lauren Corporation.
The retailer has reported three consecutive quarters of same-store sales declines, as currency swings and lacklustre economic activity damped its results. Investors have sliced $7.5bn off the market valuation of Ralph Lauren since the end of 2014, when the company was worth $16.3bn.
The appointment buoyed investor enthusiasm that Mr Larsson might be able to invigorate sales: shares rose 5 per cent in after-hours trading to $108.80.
So-called fast fashion retailers have thrived in the current climate, with Zara and H&M continuously updating merchandise to keep up with consumer trends. US retailer J. Crew, which has a similar design line to Ralph Lauren, has also struggled, while teen retailers such as American Apparel, Abercrombie & Fitch and Aéropostalehave failed to drum up stronger sales.
While Mr Lauren will remain active at the eponymous label, the shuffle is the latest of several departures in the retail sector. Donna Karan stepped down at the label that bore her name this summer, while Diane von Furstenberg appointed a new chief executive at the company famous for her distinctive wrap dresses.
Date: September 29, 2015