RALPH ABDICATES

Lauren to cede CEO title to fast-fashion exec

After 48 years of leading his apparel company from a small necktie maker into an international fashion giant, Ralph Lauren is stepping down as chief executive.

The 75yearold Bronx native is handing over the reins to his $7.6 billionayear in sales Ralph Lauren Corp. to a fastfashion executive, the company said Tuesday.

Lauren insisted he was not retiring and that he would stay on the board and remain as the company’s chief creative officer.

Still, the change will mark the first time in the company’s long history that Lauren — or, simply, Ralph, as he has become to be known — will not lead the fashion concern.

Stefan Larsson, 41, who had most recently been global president of Old Navy and, before that, spent 15 years at H&M, will join the company in November as CEO.

Quietly, Wall Street had been clamoring for a change. Revenue in the 12 months ended March 28 edged up just 2.3 percent and profits slipped by nearly 10 percent.

Ralph Lauren shares are off 43.8 percent this year, to $104.12 as of Tuesday’s close.

In August, the company said revenue in the three months ended June 27 fell 5.3 percent while samestore sales declined 8 percent.

While Ralph’s designs continued to get great reviews, customers more and more were turning to fastfashion retailers like Zara and H&M. That put the squeeze on Lauren and other fashion brands.

“Investors have been ask ing for years about a succession plan,” said Odeon Capital analyst Rick Snyder.

“It is very difficult to find one individual who can run the creative and business end of the company,” the analyst said.

In Larsson, the company believes it has found the perfect businessman to compete against its fastfashion rivals.

The incoming CEO leapfrogs over David Lauren, Ralph’s son, an executive vice president and a member of the board, who had been whispered as a possible successor to his dad.

Larsson also jumps ahead of Jackwyn Nemerov, the company’s No. 2 as president and chief operating officer.

Nemerov will retire in November, the company said.

Larsson’s business acumen and expertise in inventory control is sorely needed, say industry experts, pointing to a yearlong leadership vacuum at the company.

Longtime president and COO Roger Farah retired last year — and then became coCEO at Tory Burch.

“Farah is a highly respected retail exec, a ‘left brain’ partner to the creative Ralph and Tory,” said Craig Johnson, president of Customer Growth Partners.

The company has been focusing on transforming its operating systems to run more efficiently, investing in inventory control software, Patel said.

While Larsson lacks luxury brand experience, that may be less important in the fashion industry today, which has to be more nimble.

“Larsson knows about efficient supply chains,” Patel said.

Lauren is not the only iconic designer to turn to new leadership.

Earlier this year, Donna Karan stepped down from the company she founded.