Ralph Lauren Corp. announced today that Chief Executive Officer Stefan Larsson, 42, is leaving after less than two years as CEO, according to the Chicago Tribune.
Larsson was brought on board to implement a new creative vision, but reportedly he and Ralph Lauren, 77, disagreed on how to revive the brand.
Shares are down 11 percent to $75.50 on news of the creative duo’s split circulated.
“We both recognize the need to evolve. However, we have found that we have different views on how to evolve the creative and consumer-facing parts of the business,” Lauren said in the statement. He continued, “After many conversations with one another, and our board of directors, we have agreed to part ways.”
Larsson previously worked for H&M and Old Navy, chain stores that are tailored to a different demographic than Lauren’s upscale clothing.
“When you bring in an executive from a company that’s primarily a mass discounter, when you’re participating in the high end and the premium market, you’re not going to get a good fit,” said Milton Pedraza, the head of Luxury Institute.
Ralph Lauren Corp. will pay Larsson $10 million in severance and health benefits over the next two years.