American designer Ralph Lauren announced on Tuesday that he will step down as the CEO of his fashion empire that he founded about 50 years ago. His successor will be a Stefan Larsson, a former H&M executive and current president of Old Navy, Gap’s lower market brand. Mr. Larsson is responsible for the revival of Old Navy making him an ideal executive in the retail industry.
The change may be a move for Ralph Lauren to reorganize its financial house, Larsson seems like the perfect guy for the job with his track record. The reason behind this change may be a move to is to increase Ralph Lauren yearly earnings, in the recent past years revenue dropped by 5.3% and the company’s share price has lowered in recent years. Although Ralph Lauren has decided to step down he will remain executive chairman and head the design team. The change will be effective in November.
With Mr.Larsson’s past experience in “fast fashion” such as H&M and Old Navy how will this influence the aesthetic of Ralph Lauren?