Rafaelian keeps ‘dream job’ as Alex and Ani chief

It has been a tumultuous year for Cranston-based jewelry maker Alex and Ani and its founder, Carolyn Rafaelian.
A March ouster of CEO Giovanni Feroce was followed by a companywide shakeup, with at least 40 Rhode Island workers losing their jobs, including several executives. In June the company dissolved its Seven Swords Media subsidiary. The move last month led to a lawsuit from GoGo Media Inc., which claims Alex and Ani broke a promise to sell the marketing subsidiary.
Throughout the upheaval, the company and Rafaelian have publicly signaled a “business as usual” approach. The firm this year did continue its climb up Inc. magazine’s top 100 fastest-growing private companies list. And last month the company expanded its offerings with the launch of a leather-goods line called The Gabriel Collection.
But the biggest changes may be in what’s not happening.
Rafaelian took over as interim CEO after Feroce left. Instead of hiring a new CEO, as was expected, she told Providence Business News she has her “dream job” and will continue in that role. A company president is expected to be hired by early next year.
And despite reports of the company exploring plans for an IPO for more than year, she said, “There are no plans to go public.”

PBN: Has the extreme sales growth Alex and Ani produced in recent years slowed?
RAFAELIAN: Alex and Ani continues to experience tremendous sales growth, and the future looks bright. In fact, Inc. magazine just recognized our extraordinary growth by naming us to the Inc. 500 list of fastest-growing privately held companies. We jumped to No. 53 on the list from No. 94 in 2013 and No. 194 in 2012. Our growth continues to be strong. We are exceeding our projections this year, which is an incredible accomplishment, all due to the diligence, determination and positive energy of every person on our team. Our retail footprint continues to grow. It’s been exciting to see our retail growth from our original flagship store in Newport to over 40 retail locations on Main Streets across America with stores continuing to open throughout 2014. For 2015, our retail expansion plan remains focused on strong and strategic growth.
In addition, our wholesale presence is growing as well. Currently Alex and Ani has over 1,400 points of wholesale distribution through national department stores, including Bloomingdale’s and Nordstrom, and we are adding new accounts daily. We also have developed wonderful products through licenses with companies like Walt Disney and Hasbro.
Internationally, we have over 500 international retail locations in 10 countries and 11 Caribbean islands. Our efforts to export quality, made-in-America products have earned us recognition from the U.S. Commerce Department. In fact, in 2014 Alex and Ani received the President’s E Award for achievement in increasing U.S. exports.

PBN: Where specifically do you see growth coming from going forward? RAFAELIAN: We continue to grow organically through strong customer advocacy and word-of-mouth. Furthermore, we are excited about our new product lineup for the holidays. As a brand, we like to celebrate each individual’s uniqueness and authenticity. … We have a new line of precious jewelry consisting of necklaces, earrings, rings, and bracelets that have a unique functionality and a delicate aesthetic that is unlike any of our other signature pieces. We are also launching a new line of small leather goods, which we view as a natural extension of our brand. They will be in stores for the holiday.
In addition, we are very excited about some new Charity by Design partnerships. Empowering nonprofits to share the power of positive energy is something I’m very passionate about. I’m very proud that we have given back more than $11 million to 37 nonprofit partners over the last three and a half years that focus on the environment, community development and wellness.

PBN: You’ve utilized Rhode Island suppliers and labor to a large degree through the company’s growth, but does the industry and workforce here have the capacity to meet your needs going forward?
RAFAELIAN: We are committed to Rhode Island. The labor force in the Ocean State is second to none and we will continue to expand here. At this time, there are no plans to expand elsewhere.

PBN: Former CEO Giovanni Feroce said he left the company because of a disagreement with you about how fast the company should expand into new products. Is that accurate?
RAFAELIAN: The specific details regarding Giovanni’s departure are bound by a mutual confidentiality clause. As I mentioned earlier, we are excited about continued organic growth and the recent launch of our small-leather-goods line, which we see as a natural extension of the Alex and Ani brand.

PBN: Did investors play any part in the CEO change?
RAFAELIAN: In every company, the board of directors has the ultimate responsibility for setting the strategic direction … and choosing the right individuals to execute on that strategy. For the last several months we have been identifying opportunities to strengthen our existing business and build a strong team for the future. We have made several key appointments recently of highly successful and qualified individuals with proven track records of building strong lifestyle brands.

PBN: Former employees have said as many as 40 employees were laid off after Mr. Feroce left. Can you confirm how many people have been laid off?
RAFAELIAN: As I mentioned, over the last six months, we have been evaluating the company from top to bottom with an eye toward making sure the infrastructure and personnel in place would continue to support our operations and help us sustain growth. While we have made several personnel changes, we have strengthened our business by bringing on individuals who have the experience to lead, educate and mentor the amazing people who have gotten us to the point where we are today.

PBN: The company in June announced plans to add 70 new employees to the Cranston corporate headquarters, and another 180 in stores across the country by the end of the year. How many of those new employees have been hired, and of those, how many replaced laid off workers?
RAFAELIAN: We are well on our way to fulfilling our hiring plans and are on track to exceed these estimates by the end of the year. It’s a big job to recruit and hire so many people, but our brand and dynamic workplace attracts a stream of top talent so we can staff appropriately to support our continued growth. Given that growth, and need for more personnel at corporate headquarters, we are literally bursting at the seams. To that end, we are increasing our space in our headquarters building in Cranston to accommodate our growing team.

PBN: Is Alex and Ani still being built as a “multibillion-dollar business,” as Mr. Feroce described, stretching into areas well outside jewelry, or are you focusing more on core products?
RAFAELIAN: We are in business to grow, just like every business in America. I built this business thinking that the sky is the limit if we continue to stay true to our core ideals of empowering consumers through individual expression, being conscious of the environment and giving back to nonprofit organizations.

PBN: Was consolidating Seven Swords Media an example of reining in noncore business? Why was Seven Swords consolidated and not sold?
RAFAELIAN: Seven Swords Media was absorbed into the company to be an in-house department that solely supports Alex and Ani and our core products as we continue to grow. It simply didn’t make sense for us to be servicing outside clients any longer, given the great in-house demand Alex and Ani has for production services.

PBN: What is your vision for the company 20 years from now?
RAFAELIAN: If I can look back in 20 years and say Alex and Ani has contributed to a new way of thinking and acting that considers the well-being of the planet, our communities and our individual paths, then we will have been a success. That means maintaining a commitment to quality products and using sustainable materials. It means supporting the local economies where our stores are located; giving back to nonprofit organizations that share our goals and igniting a meaningful consciousness amongst our customers every time they wear or purchase one of our products.

PBN: Do you plan to take Alex and Ani public? If so, when?
RAFAELIAN: There are no plans to go public at this time.

PBN: You’ve invested a lot in pieces of Rhode Island outside Alex and Ani – such as Belcourt Castle and Sakonnet Vineyard – do you intend to make more purchases like that? RAFAELIAN: I am a Rhode Islander, and committed to Rhode Island. I never thought I would own a vineyard or a historic mansion, but I bought them to share with Rhode Islanders. The vineyard, one of Rhode Island’s crown jewels, was in danger of being sold for development. The land is one of the sacred places in our state that was once the home of the Sakonnet people, and I wanted to maintain the beauty of the land for generations of Rhode Islanders to continue to enjoy as a special place. Belcourt too plays an important role in the history of Rhode Island’s Gilded Age and should also be a special place for all of us to create memories and life moments. Both investments are in keeping with my commitment to finding ways to actively create the world we want to live in.

PBN: Do you enjoy being CEO again?
RAFAELIAN: I have my dream job! Being CEO allows me to combine my passion for creative design with building a business, supporting Rhode Island and America and for helping people to create meaningful conversations.

PBN: How is the job different from the way it was in 2009?
RAFAELIAN: Of course, being CEO today is much different than when I first started. The priorities have changed as we have grown. Now, I am dealing with things such as market expansion and international growth – things that were not as much of an issue when we had lower revenue. I am excited to get up and come to the office every day. I am and always have been involved in setting the strategy and direction of every facet of the business and that will continue.

PBN: Had you expected to hire a new permanent CEO by now? Why has it taken longer than expected?
RAFAELIAN: We have spent some time over the last several months building a core management team that is experienced with retail and lifestyle brands. This team gives us expanded perspective, insights and a breadth of business knowledge and experience as we expand our brand. As that team has come together, I am going to continue as CEO, but we do intend to hire a company president by early 2015. It is more important to find the right person for the job than to make a fast decision. As we grow we are continuing to review the entire business to make sure we have the right people in the right places.
I have been extremely hands-on in this business, I have made every single decision that we need to make from the start and I have had some wonderful moments over the years. … As the leader of Alex and Ani, it is up to me to set the course and direction for this company, so that when it takes on a life above and beyond my existence it will always hold the integrity, vision, human connection and empowerment that we have strived so hard to achieve. I will always continue to lead the company in that way. •