Business Of Fashion: Tory Burch Hires Fashion Vet, Roger Farah
Who said you can’t have it all? Certainly not Tory Burch. The designer most recently hired ex-Ralph Lauren fashion legend, Roger Farah as co-CEO to spearhead her vision to turn her brand and business into a global fashion empire. Ms. Burch herself plans to step down from CEO to co-CEO, alongside Farah, to strategize as well as capitalize on an ever popular trend taking the fashion industry by storm—flipping affordable luxury brands for higher profit margins.
While employed at Ralph Lauren, Farah assisted in quadrupling sales to $7.5 billion just last year, from only $2 billion recorded in 2000 by improving technology and distribution capabilities. Because of Farah’s great success at Ralph Lauren many designers hypothesized his next move- well, this is it!
Are Burch’s plans simply to take over the world, or could she have more tricks up her sleeve? This move has caused speculation amongst retailers and designers that she could be organizing a potential initial public offering (IPO); however both Farah and Burch denied any such plans. Farah commented on his decision to take on the business by stating, “Tory Burch has been pressure-tested over the last 10 years. This isn’t about problem-solving or fixing things. It’s about coming to a well-built business model and executing that globally.”
Last year Burch generated sales of more than $1 billion and has been growing significantly with no plans of slowing down soon. Products are currently sold in 136 Tory Burch boutiques and 3,000 specialty stores worldwide. Plans to increase their brick-and-mortar retail stores have been discussed with the brand targeting to open additional stores over the next year in Paris, Milan and New York.
Source reference via Wall Street Journal