Ralph Lauren has announced that its president and chief executive officer Stefan Larsson will leave the company on May 1, after deciding to part ways following disagreements over its turnaround strategy.
The announcement was made as the company reported a disappointing set of results for the third quarter, which showed net revenues fell by 12 percent compared to the same period last year, causing its shares to fall by more than 11 percent. International net revenue fell by 6 percent, while North America revenue was down 15 percent.
The company said it would continue forward with its longer-term strategy laid out by Larsson in June, with chief financial officer Jane Nielsen leading the execution of the company’s turnaround plan in the interim. A search for a new chief executive will commence shortly.
Larsson’s departure will come as a surprise to many, at a time when the company is attempting to inject more excitement around its clothing and products, known for their preppy styles, to attract younger consumers and move away from its reliance on wholesale and heavy discounting.