Creator of Stride Rite's Turnaround Plan Resigns to Pursue Other Professional Opportunities
LEXINGTON, Mass.--(BUSINESS WIRE)--Sept. 29, 1998--John Ranelli, Stride Rite Corp.'s Executive Vice President and architect of the footwear company's successful turnaround program, announced that he has resigned to pursue other professional opportunities.
Ranelli, who for more than a decade has been a leading consumer products executive, said he reached his decision after concluding he had accomplished his goals of increasing the company's sales and profits. While he had been mentioned as a leading candidate to succeed retiring Stride Rite CEO Robert Siegel, Ranelli said he learned late last week he would not be awarded the post, which he had desired, and he has opted to pursue other opportunities in the industry that have arisen due to the success of his turnaround program at Stride Rite, and previously, his brand and growth success at Timberland.
Ranelli created Stride Rite's highly successful ''On the Road Back'' turnaround plan, which increased profits in each of the eight consecutive quarters since his arrival at the company in 1996. His program was also credited with bringing sales back to analysts' projections of $540 million for Fiscal 1998. When he first joined the company, sales had slipped from a high of almost $600 million in 1992 to just under $450 million in 1996.
In 1997, Stride Rite reported a profit of 40 cents per share and analysts project a 55 cents per share profit in 1998, compared to a 17 cents per share loss in 1995. As a result, the company currently has the second highest stock multiple in the industry.
According to Mr. Ranelli, ''Stride Rite now has seven brands--four more than when I started--and just reported a 17% sales increase and a 59% earnings per share increase in this last quarter. The 'On the Road Back' plan breathed new life into Stride Rite and I was glad my program worked. I now look forward to my next challenge.''
Before joining Stride Rite, Mr. Ranelli was President of Intl, CFO and head of global operations for Timberland, where he was instrumental in repositioning the brand and establishing Timberland as the premium outdoor brand worldwide, while increasing its stock price from $7 dollars to $85 per share during his tenure.
Contact:
Sarah Compton, (212) 704-8252
Copyright © 1998 Business Wire.
I never knew this guy was in charge of the turnaround, I thought Jacobson, Siegel were the turnaround specialists. Anyway, here is some follow up info from SRR.
Clarification of Recent Press Release
LEXINGTON, Mass.--(BUSINESS WIRE)--Sept. 30, 1998--The Stride Rite Corporation (NYSE:SRR - news) wishes to clarify that a press release dealing with the departure of John R. Ranelli from the Company, which was made public yesterday evening, was not initiated by the Company. The release was the product of a New York public relations firm apparently contracted by Mr. Ranelli, who was Stride Rite's former Executive Vice President. While at Stride Rite, Mr. Ranelli was one
of eleven members of the Company's executive leadership team who collectively develops and executes the Company's business strategy under CEO Bob Siegel's direction. Stride Rite will record a charge of $295,000 (less than $.01 per share) during the fourth quarter of its 1998 fiscal year to provide for severance benefits potentially payable to Mr. Ranelli over the next twelve months if he remains unemployed. The Company will have no further comment on Mr. Ranelli's departure, but wishes him well as he pursues other career opportunities.
The Stride Rite Corporation markets the leading brand of high quality children's shoes in the United States. Other footwear products for children and adults are marketed by the Company under well-known brands names, including Keds, Sperry Top-Sider, Tommy Hilfiger, Levi's, Nine West Kids, Grasshoppers and Street Hot. |
