Ralph Lauren Steps Down As CEO, To Continue As Chairman

(RTTNews) - Apparel maker Ralph Lauren Corp (RL) on Tuesday said its eponymous founder will hand over the CEO role to Gap executive Stefan Larsson in November, while continuing to retain the position of executive chairman and chief creative officer. Following the announcement, Ralph Lauren shares gained more than 4 percent in after-hours trade on the New York Stock Exchange.

"My job is to think always about the future of our company and how to move it forward. Stefan Larsson is exceptionally talented, and he will bring our company a fresh and exciting global perspective," Ralph Lauren said in a statement.

Larsson, who will also join the Ralph Lauren board, most recently served as the global president of Old Navy, a division of fashion retailer Gap Inc (GAP). Previously, Larrson was with Swedish retailer Hennes & Mauritz for 15 years.

Ralph Lauren, CEO of the company since he founded it in 1967, had been mulling a management change for the past few years. The announcement comes as Ralph Lauren strives to boost growth and revive its stock price that has been under pressure.

In August, Ralph Lauren reported a plunge in first-quarter profit, hurt by lower revenues and charges. To spur growth, Ralph Lauren expanded its luxury business and added three new brands to its portfolio. The company is known for brands such as Polo Ralph Lauren, Black Label, and American Living, among others.

The company also announced that Jackwyn Nemerov, president and chief operating officer, will retire in November, at which time she will become an advisor to the company.

Meanwhile, at Old Navy, Larsson will be replaced by Jill Stanton, executive vice president of global product at Old Navy, who will lead the division in the interim. A search for a new global brand president is under way.

RL closed Tuesday at $104.05, down $0.83 or 0.79%, on the NYSE. In after hours, the stock gained $4.87 or 4.68%.