Ralph Lauren posts quarterly loss a day after naming new CEO
- Author: Zachary Reyes May 19, 2017,
May 19, 2017, 9:16
Ralph Lauren Corp RL.N reported its ninth straight fall in quarterly sales at established stores as fewer customers visited its stores, sending the company's shares down 3 percent to levels last seen during the financial recession.
Louvet will take up his position as president and chief executive officer on July 17, the fashion company announced from its NY headquarters.
"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", Lauren said in a statement. He is also joining the company's board and will report to executive chairman and founder Ralph Lauren.
During his 25 years at P&G, Louvet controlled numerous market-leading brands, including Gillette, Gucci and Hugo Boss.
He will replace Stefan Larsson, who announced in February that he would leave the New York-based company after less than two years in the job.
Ralph Lauren Corp.is taking another stab at having someone other than its eponymous founder and longtime leader run the organization. Retail revenue in the fourth quarter fell 16 percent, driven by a decline in revenue at established stores that were hurt by weak customer traffic and a lower average transaction total.
Louvet will be shipped in from Procter & Gamble, a general goods manufacturer, where he now manages a huge global division of beauty products.
At some point, we're going to recognize that Ralph Lauren is still an iconic brand with value and realize something good can happen for the company, Cramer said.
The company has been trying to reduce costs by cutting jobs and shuttering stores, including its flagship Fifth Avenue store in NY. Upon his sudden resignation in February 2017, just 15 months into the job, Lauren also said: "We have different views on how to evolve the creative and consumer-facing parts of the business".
He reasoned that Louvet and Executive Chairman Ralph Lauren could make for a great pair.
The veteran designer said Louvet s business skills, 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".
Ralph Lauren Corp (NYSE:RL) traded down 1.88% on Thursday, hitting $71.38. The company had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.56 billion.