How the market reacted to Ralph Lauren hiring Old Navy’s CEO
Investors are nervous about what the recent management shake up at Old Navy will mean for the Gap Inc. owned company, which was apparent when its stock declined by 6% on Wednesday while Ralph Lauren’s went up by 12%, CNN Money reports.
Stefan Larsson just left his role as president of Old Navy to become the new CEO of Ralph Lauren after the company’s namesake stepped down (or, according to Lauren himself, stepped up) from the position.
Old Navy was the only Gap Inc. brand that saw growth in sales last year with a 5% increase. Banana Republic, also owned by Gap Inc., had sales remain flat while Gap’s fell by 5%. So far, in the first nine months of 2015, Old Navy’s sales have gone up by 3%; Banana Republic and Gap have seen steep declines of 7% and 8%.
Gap Inc. named Jill Stanton the new president of Old Navy, a step up from her previous position as the global product chief. Susan Anderson, FBR & Co. retail analyst, believes that this was a strategic move for the company. Stanton has been with Old Navy since 2012 and has been integral to the growth of the brand’s sales alongside Larsson.
Before Old Navy, she worked at Nike. Her experience from the sportswear retailer has contributed to helping make Old Navy’s athletic apparel more competitive in the market.