Mercedes Abramo
RALPH LAURENAbout Mercedes Abramo
Mercedes Abramo is Regional Chief Executive Officer, North America at Ralph Lauren, appointed to join on March 1, 2025, and reporting to CEO Patrice Louvet; she previously served at Cartier S.A. as Deputy Chief Commercial Officer after roles as Director of Cartier’s Fifth Avenue flagship, Vice President of Retail, and President & CEO of Cartier North America . In RL’s FY2025, North America revenue reached $3,050.1 million, up 3% year-over-year, with Q4 FY2025 North America revenue of $704.7 million (+5.5%) and operating margin of 19.1% (up 210 bps), providing regional performance context that overlaps with the start of her tenure . Company-wide incentive design emphasizes Total Company Revenue and Adjusted Operating Profit Margin in annual bonuses, and three-year Adjusted ROIC and relative TSR in PSUs; RL applies stock ownership guidelines (one to six times salary by role), double‑trigger vesting on change‑of‑control, and robust clawbacks—key alignment mechanisms relevant to senior executives like Abramo .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cartier S.A. | Deputy Chief Commercial Officer | — | Senior commercial leadership at global luxury brand |
| Cartier North America | President & CEO | — | Led North America operations; recognized for luxury retail and people leadership |
| Cartier | Vice President of Retail | — | Retail leadership progression |
| Cartier Fifth Avenue Flagship | Director | — | Store leadership foundation in New York |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | None disclosed in RL filings reviewed |
Fixed Compensation
- RL’s January 21, 2025 8‑K announced Abramo’s appointment but did not disclose her compensation terms; the filing included an employment agreement for Robert Ranftl only .
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Bonus (EIP) | Total Company Revenue | Not disclosed | Not disclosed | Not disclosed | Not disclosed | Annual cash bonus framework |
| Annual Bonus (EIP) | Adjusted Operating Profit Margin | Not disclosed | Not disclosed | Not disclosed | Not disclosed | Annual cash bonus framework |
| Annual Bonus (EIP) | Strategic growth drivers revenue (Women’s Apparel, Outerwear, Handbags & Small Leather Goods) | Not disclosed | Not disclosed | Not disclosed | Not disclosed | Annual cash bonus framework |
| Annual Bonus (EIP) | Adjusted SG&A Expense | Not disclosed | Not disclosed | Not disclosed | Not disclosed | Annual cash bonus framework |
| Annual Bonus (EIP) | Citizenship & Sustainability metrics | Not disclosed | Not disclosed | Not disclosed | Not disclosed | Annual cash bonus framework |
| Long-Term PSUs | Cumulative 3‑year Adjusted ROIC | Not disclosed | Not disclosed | Not disclosed | Not disclosed | PSU cycles over three years; capped payouts |
| Long-Term PSUs | Relative Total Shareholder Return (comparator group) | Not disclosed | Not disclosed | Not disclosed | Not disclosed | PSU cycles over three years; capped payouts |
RL caps payouts on both annual bonuses and PSUs; equity awards emphasize multi‑year retention and performance alignment .
Equity Ownership & Alignment
| Policy/Practice | Detail |
|---|---|
| Executive Stock Ownership Guidelines | Require NEOs and select senior leaders to own a meaningful amount of stock; multiples range from one to six times base salary by position |
| Holding Requirement | If below guideline, must retain 50% of net shares from RSUs/PSUs and 50% of net shares from option exercises until compliant |
| Anti‑Hedging/Pledging | Directors, officers, and employees are prohibited from hedging and pledging Company stock; short selling also prohibited |
| Clawback Policies | Dodd‑Frank compliant mandatory recoupment for accounting restatements, plus pre‑existing clawbacks tied to misconduct/gross negligence under incentive plans |
| Governance-Driven Pay Mix | Significant portion of executive pay is at‑risk and delivered in equity with multi‑year vesting to emphasize long‑term value creation |
Employment Terms
| Item | Disclosure |
|---|---|
| Appointment | Announced January 21, 2025; Abramo to join March 1 as Regional CEO, North America |
| Reporting Line | Member of enterprise leadership team, reporting to CEO Patrice Louvet |
| Change‑in‑Control Policy | For NEOs, cash severance only upon actual termination; equity awards use double‑trigger vesting upon termination in connection with a change‑in‑control; no excise tax gross‑ups |
| Ownership & Conduct Policies | Subject to executive stock ownership guidelines and anti‑hedging/pledging policies; robust clawbacks |
North America Performance Context
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| North America Net Revenues ($MM) | $2,950.5 | $3,050.1 |
| North America Operating Income ($MM) | $548.9 | $640.1 |
| Metric | Q4 FY 2024 | Q4 FY 2025 |
|---|---|---|
| North America Net Revenues ($MM) | $667.7 | $704.7 |
| North America Operating Margin (%) | 17.0 (derived from $113.5/$667.7) — not disclosed by RL | 19.1 (disclosed) |
In Q4 FY2025, North America comparable store sales rose 9%, with brick‑and‑mortar +9% and digital +8% . RL emphasized DTC‑led growth, AUR expansion, and disciplined wholesale repositioning as key drivers .
Execution Themes from Investor Day (North America)
- Abramo outlined a consumer‑centric plan emphasizing DTC, disciplined full‑price store expansion (~15 new stores over three years), elevated outlet segmentation, and targeted wholesale share gains; she flagged bold ambitions for Los Angeles and broader white space in the U.S. and Canada .
- She highlighted positive comps in seven of the last eight quarters and AUR growth of ~20% since 2022 in outlets; wholesale promotions down ~50% vs. pre‑pandemic and AUR up ~30%, reflecting quality of sale improvements .
Say‑on‑Pay & Compensation Governance
- RL received 97% support on Say‑on‑Pay at the 2024 Annual Meeting; the Talent Committee engages regularly with top institutional investors and uses an independent compensation consultant .
- Compensation practices include at‑risk pay emphasis, stock ownership guidelines, double‑trigger vesting, caps on incentives, and fixed share authorization without an evergreen feature .
Investment Implications
- Alignment: RL’s ownership guidelines, anti‑hedging/pledging, double‑trigger vesting, and clawbacks reduce misalignment and mitigate hedging/pledging‑related selling risk; the multi‑year equity structure supports retention and long‑term focus .
- Execution Signal: Abramo’s Cartier background and Investor Day plan focused on DTC, key city ecosystems, and outlet segmentation align with RL’s proven growth vectors (new customer recruitment, AUR expansion, select unit growth), supporting North America margin and revenue sustainability .
- Watch‑Items: Specific compensation terms (salary, bonus targets, initial equity grants) for Abramo have not been disclosed in the January 21, 2025 filing—monitor the next proxy and any 8‑K/Forms 3/4 for grant details and vesting schedules that could indicate future selling windows or retention hooks .
- Regional KPIs: FY2025 North America revenue and operating income growth provide a constructive backdrop; continued DTC execution, disciplined wholesale, and store pipeline in LA and top cities are key levers under Abramo’s remit .