Ralph Lauren Taps P&G Executive as CEO -- Update
18 May 2017 - 12:41AM
Dow Jones News
By Bowdeya Tweh
Ralph Lauren Corp. is taking another chance on bringing in an
outsider to run the company, this time tapping Procter & Gamble
Co.'s top beauty executive to be its next chief.
The company said Wednesday that Patrice Louvet will become
president and chief executive officer on July 17. He is also
joining the company's board and will report to executive chairman
and founder Ralph Lauren.
Mr. Louvet, 52 years old, is the second external pick to lead
the company after Mr. Lauren stepped aside as chief executive in
2015. The designer-founder, whose family remains the company's
largest shareholder, maintained titles as executive chairman and
chief creative officer.
Stefan Larsson, who had been named Mr. Lauren's successor after
spending time at Gap Inc. and Hennes & Mauritz AB, left the
company after less than two years at the helm after clashes with
Mr. Lauren over creative control. Mr. Lauren founded the fashion
label in 1967.
Mr. Louvet is group president of global beauty at P&G, a
division with brands such as Head & Shoulders, Olay and Old
Spice. The company's 12 brands generated about $11.5 billion in
revenue in 2016.
Mr. Louvet has spent more than 27 years with P&G. Before
overseeing P&G's beauty business, he was president of Gillette
and of its Global Prestige business, which featured fragrances such
as Hugo Boss, Lacoste, Dolce & Gabbana and Gucci.
At Ralph Lauren, Mr. Louvet will earn a base salary of $1.25
million, according to a company filing. He will also receive annual
equity awards in addition to performance-based bonuses and other
benefits.
"He's an enormously skilled business leader with a deep passion
for the consumer and a sophisticated understanding of building
global brands," Mr. Lauren said in a statement.
The new CEO announcement comes one day before the company is
slated to report its fourth quarter and full-year financial
results. Analysts expect the company to report a quarterly decline
in adjusted earnings and a 17% fall in revenue, according to
Thomson Reuters.
Mr. Louvet will take the reins at Ralph Lauren one year after
the announcement of a plan aimed at cutting costs by closing
underperforming stores, reducing staff to help streamline the
organization and increasing its speed in bringing products to
market.
Earlier this year, the company said the plan has resulted in
about $400 million of restructuring charges and $150 million of
inventory write-downs and severance payments to Mr. Larsson.
Write to Bowdeya Tweh at Bowdeya.Tweh@wsj.com
(END) Dow Jones Newswires
May 17, 2017 10:26 ET (14:26 GMT)
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