NEW YORK — In an interview in his luxurious wood-paneled office in Midtown Manhattan on Tuesday, iconic 75-year-old designer Ralph Lauren said that in handing off his title of CEO to a new person, he’s not slowing down — but, rather, he sees Stefan Larsson, 41, as a partner as the company spearheads future sales growth.
“I am here, and I am not leaving,” said Lauren. “Stefan is coming to the company because I really believe he’s going to be an interesting addition.”
Asked whether he chose Larsson, global president of Gap’s low-price Old Navy chain, because of his success in fast fashion, Lauren acknowledged he is a good businessman, but, more importantly, they share a common vision.
“He understands what dreams are,” Lauren said. “In this business, it’s about dreams because you are dreaming ahead and you’re about progress and change and newness.”
Lauren knows all about dreams. Lauren, who started the company 48 years ago selling ties, has built a vast empire that includes women’s, men’s and children’s clothing, home decor, accessories and now restaurants.
The designer has long loved the American West, incorporating Western motifs in his fashion and home collections, and has a ranch near Telluride. “I have other houses, in New York and Jamaica, and I love them, but the ranch makes me aware of the natural world — it puts everything into perspective,” Lauren said in a September interview with House & Garden UK magazine.
After years of surging growth, the brand has seen its revenue slow down. In the latest fiscal year ended in March, Ralph Lauren Corp. generated sales of $7.5 billion, but that represented just a 2.3 percent increase from the previous year.
To pump up sales, Ralph Lauren has added three new brands over the past two years: Polo for Women, Polo Sport and Denim & Supply. The company has also been beefing up its online presence.
Lauren and Larsson said they are looking for more growth opportunities in China and Europe, as well as pushing for more growth in the e-commerce business. They also noted there’s a lot of room to grow with the three new brands.
“What attracted me to take on this role was Ralph himself and his vision,” Larsson said. “So my job is to work side by side with Ralph, refine it and grow the company into the future.”
Lauren said consumers are even more interested in high-quality clothing as people have a lot of clothes.
“Luxury is an exciting area,” Lauren said. “Consumers want specialness. They want quality. There’s a lot of mediocracy out there. And that’s not selling. What’s selling is specialness, quality and uniqueness. One of a kind. And that’s what I stand for.”
As of late June, Ralph Lauren operated 467 company-owned stores, including Club Monaco and Polo Factory stores. The company also operated 558 concession shops worldwide. In addition, international licensing partners operate more than 200 other locations.
Meanwhile, Gap Inc., based in San Francisco, said Larsson will step down Friday and Jill Stanton will lead Old Navy in the interim while it searches for a permanent replacement. Stanton is currently executive vice president of global product at Old Navy. Gap noted in a release that Stanton is a “proven industry veteran” with more than 25 years of retail experience, including almost 14 years as vice president and general manager of global apparel at Nike.
Ralph Lauren’s shares slipped 83 cents to close at $104.05, but rose nearly 4 percent, or $4.07 to $108.12 in after-hours trading when the news was announced. Gap’s shares slipped 3 percent, or 92 cents, to $29.30 in after-hours trading, after closing up 9 cents to $30.22.
