Tory Burch: member of the billionaire ladies club

Tory Burch has quickly turned herself into a household name, and one of the most desirable entry-level luxury brands in America. It’s hard not to walk down the streets of any major U.S. city and see at least one person with the iconic Tory Burch emblem emblazoned on their purse, heels, or sunglasses. It’s no secret that Tory Burch is a brilliant businesswoman either, having catapulted her line from a venture with a small retail store in Manhattan to the growing conglomerate it is today.

Burch’s life might seem like a fairytale. Her father was a wealthy investor, and her mother was an actress who had dated high profile men in Hollywood, such as Marlon Brando and Steve McQueen. She went on to attend the Ivy League institution, The University of Pennsylvania. After graduating she worked for Zoran, a Yugoslavian designer, followed by a stint at Harper’s Bazaar. She then transitioned into the advertising and public relations side of fashion with positions at Vera Wang, Polo Ralph Lauren, and Loewe.

When Burch launched her line she practically became an overnight success. Inventory at the small retail store carrying her line sold out within the first day. She would quickly go on to be endorsed by Oprah, who referred to Burch as “the next big thing in fashion,” and as the world knows, Oprah loves to shop, so if she is endorsing someone their product is worth buying. It’s been ten years since Oprah has sung Burch’s praises, and it seems like she is still living a fairytale come true, because as of 2015, Burch’s company is worth 3.5 billion dollars.

The arrival of Burch’s billionaire status was not solely from her eternally impressive sales alone, but also came from a round of share swaps that allowed the company’s early investors to cash out and profit on their returns. The brands value has increased by 1.25 billion over the last two years, a number that is virtually impossible to scoff at. In the recent stock swap over 200 million of the company’s shares traded hands.

One of the behind-the-scenes secrets of the posh and stylish businesswoman’s success is the hiring of her co-CEO, Roger Farah, formerly President of Ralph Lauren Co. Farah was hired last year in September to help further Tory Burch’s position as a global luxury brand. Who better to recruit than the man who was veteran supreme of one of the world’s best known lifestyle labels.

Farah’s most impressive skill on his resume would have to be quadrupling sales revenue over 14 years. While at Ralph Lauren he took the company’s revenue from 2 billion in 2000 to over 7.5 billion in 2014. His secret to success was investing in better technology and supply chain and distribution capabilities. Farah left Ralph Lauren in May, and at 61 he has a while to go before anyone expects him to retire, so, people were dying to know where he would land.

Tory Burch was the lucky lady of the hour when Farah agreed to be her co-CEO. In regard to his new position at Tory Burch, Farah was quoted in the Wall Street Journal saying, “This isn’t about problem-solving or fixing things. This is about coming to a well built business model and executing that globally.”

Despite how thirsty stock brokers on Wall Street might be for it to happen, both Burch and Farah have made it clear that Tory Burch has no intentions of an IPO anytime soon. Being such a powerful force in fashion, it makes sense that Burch has no plans on having to answer to the public anytime soon. For those hoping to capitalize on the success of Tory Burch’s billion dollar enterprise they will have to hold their breath for that IPO a little longer, but until then Burch and Farah will continue to expand on their billion dollar empire.