PH
Designer Ralph Lauren, who pioneered a luxury lifestyle look, is to step down as head of the fashion company he founded nearly 50 years ago.
Stefan Larsson, the president of the Gap-owned budget chain, Old Navy will replace him as chief executive.
Mr Lauren, known for his Polo brand, will continue to oversee the company’s look as chief designer.
Analysts say luxury brands are increasingly hiring from mass-market companies.
The iconic company has been struggling to boost profits as a stronger dollar reduces the value of sales from outside the US.
Mr Larsson is credited with reviving sales at Old Navy, where he offered the latest styles at low prices.
‘Natural progression’
Mr Lauren, who will turn 76 in October, said Mr Larsson would be in charge of growing future sales.
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.”
The announcement caused Ralph Lauren’s shares to rise 3.9% in post-trading hours.
Odeon Capital analyst Rick Snyder said the change in chief executive was “just a natural progression”.
Ralph Lauren’s Legacy
- Ralph Lauren started “Polo Fashions” in 1968 with his older brother, designing ties
- They say they chose the name “Polo” because it symbolised “power, style and intrigue”
- The brand is known for its understated but classic preppy look
- In the 1980s Lauren branched out into women’s clothing, sheets, towels and furniture
- Well-known for its polo shirts, Ralph Lauren has expanded into the restaurant trade in recent years
Mr Larsson, 41, led Old Navy from 2012 and has been credited with boosting sales, even as other Gap labels faltered. Before taking over Old Navy, he worked for the Swedish brand H&M for 15 years.
Ralph Lauren made $7.5bn (£5bn) in sales last year.
Mr Lauren said his successor was “exceptionally talented” and would bring “a fresh and exciting global perspective” to the company.
