The former H&M executive has run Gap’s Old Navy, a family brand which produces low cost clothes, for the past three years.
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Ralph Lauren has taken a step back from the eponymous fashion label he founded, resigning from the chief executive role and handing the reins to industry veteran Stefan Larsson. Larsson is credited with reviving the Gap Inc.-owned Old Navy.
In the statement, Larsson expressed his excitement at taking over for the fashion mogul.
Lauren, 75, made it clear he is not leaving his company entirely, but merely giving Larsson, 41, the helm as the company aims for future sales growth. Nemerov joined Ralph Lauren in September 2004 as an executive vice president.
Murphy said, “We are maintaining our sidelines stance on RL but recognize the near-term direction of the stock will likely be higher following the unexpected announcement that Ralph Lauren himself will relinquish his reins as CEO effective in November”.
“I’ve got a business to run and a back half to deliver”, Peck said. The change in CEO “is just a natural progression”, Snyder said.
Lauren knows all about dreams.
He’s been doing that job for 48 years. In comparison, a year ago the company earned revenue of $1.99B and had a net profit of $201M. The company has been grappling with weakness in its Europe business and the overall saturation of the luxury business.
Mr. Larsson will share his vision with Mr. Lauren in expanding the brand around the world.
But overall shares have fallen 44 per cent so far this year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th.
“When they start designing things I can’t understand, I’ll quit”, Lauren told the New York Times in an interview. In the past two years, the company has added three new brands – Polo for Women, Polo Sport and Denim and Supply. What’s selling is specialness, quality and uniqueness. “I’m focused on everyone understanding the momentum we have”.
Ralph Lauren Corp (NYSE:RL) last posted its quarterly earnings results on Wednesday, August 5th.
Other research analysts have also issued research reports about the company.
San Francisco-based Gap (GPS) said Jill Stanton would lead Old Navy in the interim while it searches for a permanent replacement.
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Shares of Gap declined $2.12 to $28.10 before the markets opened.
