Ralph Lauren Steps Down As CEO
The Ralph Lauren Corporation has recently announced that its mentor, founder and Chief Executive Officer, Ralph Lauren, will soon be stepping down from his position. Come November, the legendary designer whose creations are worn by celebrity elites such as Beyonce Knowles, Johnny Depp, Gwyneth Paltrow and Angelina Jolie, will step down from his current role while continuing with the company as Ralph Lauren’s Executive Chairman and Chief Creative Officer.
In his place, Stefan Larsson will take on the role as Ralph Lauren Corporation’s new CEO. Recently, he was the Global President of Old Navy, a division of Gap Inc. Under his direction, the brand enjoyed profitable growth for three consecutive years. Moreover, he brought $1 billion in sales for Old Navy. Meanwhile, Larsson had also previously served a strategic role with Swedish brand Hennes & Mauritz (H&M). Here, he worked with a team in bringing in sales from $3 billion to $17 billion. Moreover, he also helped the brand expand company operations from 12 to 44 countries.
Ralph Lauren believes that he and Stefan “share a vision for the future of Ralph Lauren.” And if the future is anything reflective of the company’s $7.5 billion in sales back in 2014, Ralph Lauren’s corporate future continues to burn bright.
The future, however, is not going to be without challenges. During the first quarter for fiscal year 2016, Ralph Lauren Corporation reported that its revenues actually decreased slightly by 5% to $1.6 billion. This is partly because of foreign currency headwinds. In addition, the same thing was experienced by its wholesale sales, which reported a decline of 6% in constant currency.
Meanwhile, Ralph Lauren managed to enjoy a 3% sales increase when it came to retail sales. This is said to be mostly due to the opening of new stores as well as the expansion of the fashion empire on e-commerce. At the same time, licensing revenues was also up by 3% on a reported basis to $41 million. This is mostly due to higher royalties from the increase in sales of various Ralph Lauren, Polo and Lauren products around the world.
For the rest of fiscal 2016, the company expects a consolidated net revenues increase in mid-single digits in constant currency. Following some restructuring undertaken by the organization recently, Ralph Lauren also expects charges of $70 to $100 million throughout the said fiscal year.