Ralph Lauren (NYSE:RL) boss Stefan Larsson has announced his intention to step down as Chief Executive, after less than two years at the helm of the fashion brand.
Mr Larsson, who previously headed Gap’s Old Navy business, has stated that he will leave his post on first of May, after persistent disagreements over the brand’s creative direction. Mr Larsson is set to receive a $10 million settlement and two years health benefits from the iconic retailer, who are traditionally known for their “preppy” clothing.
He cited disagreements with chairman Ralph Lauren as a key cause of the departure from the role, which he inherited from Mr Lauren in the latter half of 2015.
“Stefan and I share a love and respect for the DNA of this great brand,” said Mr Lauren.
“However, we have found that we have different views on how to evolve the creative and consumer-facing parts of the business.”
“After many conversations with one another, and our Board of Directors, we have agreed to part ways”, he added.
This follows weak sales across the Christmas period, with holiday quarter revenue down by 12 percent to $1.71 billion. Many retail insiders have since argued that Mr Larsson represented a poor fit from the outset for the luxury American brand, due to his experience with high-street vendors and mass retailers.
“The board and I are committed to the execution of the Way Forward Plan and continuing to move our business and iconic brand forward,” Chairman and founder Ralph Lauren commented on the matter.
Last month, the brand announced the opening of a ‘Ralph’s Coffee and Bar’ Location in its London Mayfair location. The London bar is one of four other dining locations that the clothing brand has established. These include at its flagship New York store, Paris, and Chicago.
The company has not yet determined his replacement. After the announcement, shares in Ralph Lauren plunged 11.79 percent as of 15.43 PM (GMT).