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When Lacoste brought the shirts to the U.S. in the 1950s, they were a huge hit--the perfect preppie fashion statement--and their popularity lasted through the 1960s. But General Mills (as in cereals, not woolens) acquired the brand in 1969 during one of corporate America's periodically insane conglomerate phases and decided to combine Lacoste with another brand, Izod. The company got lucky, riding the preppie fashion wave in the 1980s. Then, desperate for sales growth, Big G cheapened the shirt, reduced the price to $35, and sold it everywhere, even to low-end stores like Wal-Mart. "They ran it into the ground," says Courtney Reeser, managing director of Landor Associates, a brand-consultancy company.
To save what was left, Lacoste (which is still family owned) partnered with clothing licensor Devanlay to buy back the U.S. rights in 1992, and then got out of town. Lacoste returned to Palm Beach and Bal Harbor, Fla., three years later and attempted to reclaim its upper-class cachet. But the next six years were a struggle for the brand.
When Siegel took the reins in 2002, the vintage preppie look was hitting fashion runways. Retro street wear such as Puma sneakers and Adidas tracksuits was suddenly the rage. And no one embodied old-fashioned preppie better than the cute green croc. With Gwyneth Paltrow sporting Lacoste in the movie The Royal Tenenbaums, the brand inched back.
Siegel saw the opportunity and pounced on it as Roddick would a short second serve. Quickly Siegel redefined the product to appeal to a younger crowd. With teenage girls in mind, he and creative director Christophe Lemaire introduced the Lacoste stretch piqué polo, a Lycra-cotton shirt with a sexier, sleeker fit, in 25 vibrant shades. It's Lacoste's best-selling item for women; polos account for 30% of sales in both the men's and women's lines. "The piqué tight polos were the natural look to be paired with low-rise jeans," says Siegel. "They just took off."
The next test for the company was to avoid repeating Izod's mistakes. Retailers encouraged Siegel to slash prices to increase sales. He did the opposite, pricing the new shirt at $69 for men and $72 for women, making it the most expensive polo on the market. (Ralph Lauren's Polo retails at $65.) Siegel understands that luxury is now a mass market, but to keep up appearances, sells only to high-end department stores like Saks Fifth Avenue, Neiman Marcus and Barneys. "Our biggest challenge is to continue to grow without overextending or overexposing the crocodile," he says. This time management will make sure the crocodile holds on to the prey.