NEW YORK - Ralph Lauren Corporation (NYSE: NYSE:RL) announced today the appointment of Justin Picicci as the new Chief Financial Officer (CFO), effective immediately. The seasoned executive steps into the role as part of a strategic succession plan following Jane Nielsen's tenure as CFO since 2016.
Nielsen, who also became Chief Operating Officer (COO) in 2019, will continue her tenure as COO through the end of Fiscal 2025, focusing on the company's operational and strategic functions.
Picicci, who joined Ralph Lauren in 2006, has held various senior finance leadership positions within the company, including Enterprise CFO, Asia Pacific CFO, and North America CFO. His extensive experience across corporate and commercial functions is expected to drive the company's financial strategy towards sustainable profitable growth and value creation.
Under Nielsen's financial leadership, Ralph Lauren has seen a significant elevation of its brand and transformation of its business, achieving more than a 70% increase in average unit retail (AUR), a repositioned e-commerce business, and a 10-point improvement in direct-to-consumer penetration. These strategic moves have resulted in over 20% growth in adjusted operating income and an 80% increase in adjusted earnings per share (EPS).
The company's President and CEO, Patrice Louvet, expressed his confidence in the new CFO, stating that Picicci's deep understanding of Ralph Lauren's global business will continue to deliver on the company's strategic plans. Picicci himself emphasized the strength of the brand and his commitment to the company's ongoing strategy and vision.
Picicci's appointment is part of Ralph Lauren's multi-year succession planning process, ensuring a smooth transition in financial leadership. He will remain a member of the company's enterprise leadership team and report to Nielsen until the conclusion of Fiscal 2025.
This announcement is based on a press release statement from Ralph Lauren Corporation.
InvestingPro Insights
Ralph Lauren Corporation's (NYSE: RL) recent executive transition comes at a time when the company is exhibiting strong financial health, as reflected by several key metrics from InvestingPro. With a market capitalization of $10.5 billion, Ralph Lauren stands as a significant player in the fashion industry.
The company's commitment to sustainable profitable growth and value creation aligns with its impressive gross profit margins, which were at 65.66% over the last twelve months as of Q3 2024. This indicator of operational efficiency is crucial as Justin Picicci takes over the CFO role with the objective of driving the company's financial strategy.
InvestingPro Tips highlight Ralph Lauren's perfect Piotroski Score of 9, which suggests strong financial health and is a positive sign for investors looking for stable returns. The company has demonstrated a commitment to shareholder returns, having raised its dividend for 3 consecutive years, and maintained dividend payments for 22 consecutive years, with a current dividend yield of 1.83%.
On the valuation front, Ralph Lauren's P/E ratio stands at 18.3, and it is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 16.67 for the last twelve months as of Q3 2024. This could indicate that the stock is attractively priced considering its earnings potential. Moreover, the company has seen a large price uptick over the last six months, with a 35.1% return, reflecting investor confidence and market momentum.
For readers looking to delve deeper into Ralph Lauren's financials and future prospects, InvestingPro provides additional insights and metrics. There are 13 additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/RL. For those interested in a subscription, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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