Dive Brief:
- DTC online rug brand Ruggable has named Nicole Otto its new chief executive officer. Otto assumed the role in January, according to her LinkedIn profile.
- Otto spent 16 years climbing the corporate ladder at Nike, eventually overseeing the brand’s North American direct-to-consumer business. In that role, Otto was responsible for the company's direct business lines, including Nike Digital, Nike Stores and Nike Factory Stores throughout the U.S. and Canada, per LinkedIn.
- Otto most recently served as global brand president for The North Face and was previously a senior advisory consultant with McKinsey & Company.
Dive Insight:
Founded by Jeneva Bell in 2017, the privately held Ruggable has been operating without a CEO for two years.
Otto replaces Nathan Baldwin, a spokesperson confirmed. Baldwin served as CEO from 2018 until 2023, according to LinkedIn. That same year, Ruggable laid off 100 corporate employees as part of an “internal restructuring.” The company did not respond to questions about whether Baldwin left as part of that restructuring and who ran the brand in the interim.
At the time, the company cited a challenging economic environment as a reason to downsize the business. A number of other DTC, venture-backed companies were experiencing the same stagnant growth and also made cuts to their staff around that time.
“The environment for DTC firms is still challenging,” Neil Saunders, GlobalData Managing Director, said in an email. “Competition is intense and consumer demand is more subdued than it was during the heyday of DTC. Firms are still having to spend a lot on marketing and customer acquisition, so profitability can be elusive. That said, a lot of surviving DTC firms have worked through some of their issues as they try to demonstrate a pathway to profitability.”
Following its cuts to employee overhead in early 2023, Ruggable expanded its product assortment and international presence. The brand added over 1,000 designs to its machine-washable rug collection and expanded the DTC online business overseas by opening its first facility in the U.K.
With the appointment of Otto, the brand is eyeing growth. Otto said in a statement she is focused on expanding the brand and strengthening connections with shoppers.
“Nicole shares our vision to redefine the future of home textiles and deliver on our mission to fill every home with design-forward, innovative products that spark joy,” Bell said in a statement. “With her global and omnichannel expansion experience, we're confident that she will successfully lead Ruggable through its next phase of growth over the coming years.”
