Ralph Lauren has announced that Patrice Louvet is the brand’s new CEO, replacing Stefan Larsson.
According to an article on Fortune, Ralph Lauren has announced that Patrice Louvet is the brand’s new CEO. Louvet replaces Stefan Larsson, who announced his resignation in February after about a year and a half with the brand.
Louvet will, as Larsson did, report to Ralph Lauren. Louvet also replaces Larsson, who announced in February that he’d be resigning as CEO of the brand on May 1st. Larsson reportedly resigned because of differences he had with Lauren.
Larrson was the first person to be CEO of the brand other than Lauren. He had previously worked at Old Navy and H&M. When he announced his resignation, Ralph Ralph Lauren’s stocks declined but 11% to $77.50.
Lauren released a statement saying,
“finding the right partner to work with me to take us forward in our evolution has been my primary focus over the last several months and I am thrilled that Patrice is joining our talented team. He’s an enormously skilled business leader with a deep passion for the consumer and a sophisticated understanding of building global brands. This, combined with his collaborative working style, transformation experience and intense focus on results, will put us in a stronger position as we move toward the future.”
Louvet release a statement saying,
“Ralph is one of the world’s greatest fashion icons and someone I have admired for many years, and it’s an incredible opportunity to partner with him to continue to build on 50 years of heritage and innovation. The brand holds tremendous potential around the world and I could not be more excited to lead the next phase of development for this great company with Ralph and the team.”
This is just the latest in the brand’s plans to increase sales and profits. The plan includes a few ways to lower debt and cut costs as well as lowering the cost of the brand’s website and corporate job cuts.
The plan will also cost the brand $370 million due to employee severance pays, lease termination fees, and inventory costs. It will, however, save the brand about $140 million annually.
The brand most recently closed its Polo store on 5th Avenue in New York. The brand opened the store about 3 years ago after signing a for a 15 year term that set annual rent at $25 million.
Sales at Ralph Lauren had been reported to be declining because of department store discounting. The brand, as well as Michael Kors, were two of the most discounted at upscale retail stores, according to Edited, a company that analyzes data for the fashion industry.
Last year in June, the brand announced that it would be closing stores and cutting jobs. The brand did not say exactly how many stores it would be closing or how many jobs it would cut but it was said to be closing about 50 and cutting about 1,000 jobs, according to an article on Reuters.
Louvet will begin working on July 17th.
So, what’s do you think? Will Patrice Louvet do well at Ralph Lauren? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me in Facebook, Instagram, and Snapchat.
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