Ralph Lauren, who managed to create the fashion empire with the same name, gave up the chief executive position in the company.
Stefan Larsson will take his place as the CEO of the company. He has a strong experience in retail, as he had been a former executive for H&M and the president of Old Navy, Gap. His reputation as a skilled executive increased after he managed to improve Gap’s sales, which faced a consistent decrease in the last period, after taking it over in 2012.
“If he comes from a place like H&M, he understands global supply chains and that’s one of the things that Ralph Lauren is trying to implement right now,” declared Rick Snyder, a financial analyst.
This change is a strategic one, as it represents a good opportunity for Ralph Lauren to improve his sales and to put his financial plans in order. Over the past years, the company struggled to increase profits during a time when dollar’s value reduced sales.
Describing his relationship with Larsson as a partnership, Lauren declared that he still remains active in the company, but on different positions, such as executive chairman and chief creative officer. Instead, Larsson will give a detailed account of his activity in the company.
The American designer, aged 75, stated that he is going to quit only when the designers would create pieces he doesn’t understand.
However, he also stated that he doesn’t feel like stepping down.
Stefan Larsson is going to take the helm of a big fashion house that over the years managed to transform America into a fashionable country, along with Donna Karan and Calvin Klein. The two also gave up to their CEO positions: Karan, this year, and Klein, back in 2002.
Rick Snyder stated that the company has reached a size that needs more control, so this change is natural and welcomed.
Larsson will come on board in November as the CEO of the Ralph Lauren Company. Answered why he had accepted to join the company, Larsson expressed his appreciation for Ralph and stated that it would be an honor for him to work with Lauren.
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