Oct 1, 2020
Stefan Larsson to become CEO of Tommy Hilfiger and Calvin Klein owner PVH
Oct 1, 2020
As of 2021, the parent company of Tommy Hilfiger and Calvin Klein will be led by a European fast fashion veteran. PVH, which reported $9.9 billion in annual revenues in 2019, has announced that Stefan Larsson will be taking over as CEO, effective next February.
The Swedish executive joined the group, led by Emanuel Chirico since 2006, in June 2019. At 63 years old, Chirico, who will stay on at PVH as chairman of the board of directors, has therefore found his successor in this former H&M manager currently serving in the recently created role of president. After roughly a year and a half of observation of PVH's activities and of discussions between the two executives about short and mid-term strategies, Larsson's appointment as the company's future CEO has now been confirmed.
His CV isn't without its rough spots, however. After some 15 years at H&M, Larsson crossed the Atlantic to become head of Gap-owned Old Navy. With proven experience in brand development, particularly in Asia, the executive also attracted the interest of a number of other large American groups.
Notably, New York-based Ralph Lauren Corporation and its board of directors fell under his charm. Recruited by the American ready-to-wear giant to revolutionize its organization, reshape its supply chain and develop its offering in 2015, the manager never really found his footing. After only 18 months at the company he therefore stepped down from his role due to "different views on how to evolve the creative and consumer-facing parts of the business," according to an official statement from Ralph Lauren.
His viewpoint should therefore be more in line with that of the current management of PVH, which also saw the CEO of its European business, Daniel Grieder, step down from his role earlier this year. Grieder will take over as CEO of Hugo Boss in early 2021.
Nonetheless, Larsson will have a number of challenges to face up to in his new position. Due to the Covid-19 pandemic and the sanitary measures taken to slow its spread, PVH reported a 33% year-over-year decline in its second-quarter revenues and is expecting a 25% decrease in the second half of the year. The group will therefore have to adapt to the new context and manage the large stocks of product left over from the summer. The company has also announced its intention to exit its heritage brands business, which includes the Izod and Van Heussen labels.
"With Stefan as our next CEO, we are well-positioned to navigate the rapidly changing retail landscape, drive brand relevance and meet the needs of our consumers, while positioning the company for long-term growth," said Chirico in a release. "Stefan’s global experience, consumer focus, and high-performance track record – especially in this unprecedented time of disruption – are unparalleled assets for PVH to succeed in the ‘new normal’ that is taking shape across our industry."
PVH employs more than 40,000 people around the world.
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