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Ralph Lauren gets new chief executive | Ralph Lauren gets new chief executive |
(about 3 hours later) | |
Designer Ralph Lauren, who pioneered a luxury lifestyle look, has stepped down as chief executive of the fashion company he founded nearly 50 years ago. | Designer Ralph Lauren, who pioneered a luxury lifestyle look, has stepped down as chief executive of the fashion company he founded nearly 50 years ago. |
Mr Lauren has given the role to Stefan Larsson, the president of the Gap-owned budget chain, Old Navy. | Mr Lauren has given the role to Stefan Larsson, the president of the Gap-owned budget chain, Old Navy. |
Mr Larsson will report to the designer who will continue to oversee the company's creative look and strategy. | Mr Larsson will report to the designer who will continue to oversee the company's creative look and strategy. |
Analysts say luxury brands are increasingly hiring from mass-market firms. | Analysts say luxury brands are increasingly hiring from mass-market firms. |
The iconic company has been struggling to boost profits as a stronger dollar reduces the value of sales from outside the US. | 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. | Mr Larsson is credited with reviving sales at Old Navy, where he offered the latest styles at low prices. |
Annual sales under Mr Larsson's leadership rose 8% in 2014 and became Gap's biggest business. | Annual sales under Mr Larsson's leadership rose 8% in 2014 and became Gap's biggest business. |
'Natural progression' | 'Natural progression' |
Mr Lauren, who will turn 76 in October, said Mr Larsson would be in charge of growing future sales. | 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." | 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." |
Ralph Lauren's shares rose more than 11% on Wednesday following Tuesday's announcement. | |
Odeon Capital analyst Rick Snyder said the change in chief executive was "positive" and "just a natural progression." | Odeon Capital analyst Rick Snyder said the change in chief executive was "positive" and "just a natural progression." |
He thinks Mr Larsson's background will help the Ralph Lauren brand to reorganise and create greater efficiencies in their supply chain. | He thinks Mr Larsson's background will help the Ralph Lauren brand to reorganise and create greater efficiencies in their supply chain. |
Lauren's fashion empire includes some 25 brands including Polo, Club Monaco and Denim & Supply. The company makes clothing, accessories, furniture, home decor items and footwear under its labels. | Lauren's fashion empire includes some 25 brands including Polo, Club Monaco and Denim & Supply. The company makes clothing, accessories, furniture, home decor items and footwear under its labels. |
Ralph Lauren's Legacy | Ralph Lauren's Legacy |
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. | 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. | 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. | Mr Lauren said his successor was "exceptionally talented" and would bring "a fresh and exciting global perspective" to the company. |