Feb 03, 2017 07:38 AM EST

Ralph Lauren CEO Stepping Down: Company Shares Down 10%

Ralph Lauren’s Chief Executive Officer, Stefan Larsson is set to step down on May 1. It was last November 2015 that Larsson took over as the company’s new CEO. RL’s shares fell by 10% after the company announced Larsson’s departure.

According to USA Today, Ralph Lauren’s shares were down by over 11% and hit $77.39 in New York on Thursday. Reportedly, the stocks already fell 22% over the past 12 months since investors were not certain on Larsson’s plans.

With the news about Larsson leaving, Tuna Amobi at CFRA Research decided to lower his position on Lauren’s stocks from “Hold” to “Sell.” At the same time, the target price per share was cut from $32 to $78 per share.

It seems like Larsson’s leaving the company had a huge impact on Ralph Lauren’s stock shares. With Larsson’s stepping down, here is what Ralph Lauren has to say, “Stefan and I share a love and respect for the DNA of this great brand, and we both recognize the need to evolve.”

Lauren added, "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.”

Chicago Tribune reported that the reason that Larsson will soon be leaving the company because of some creative clash issues with the brand founder. The statement that Lauren said clearly shows that they do not have the same views when it comes to the future of the fashion brand.

Larsson and Lauren’s disagreement in terms of the brand’s creative direction is not unexpected for many. Milton Pedraza, a New York-based luxury consultant, believes that one way or another, it has been foreseen that Larsson will fail given his background with budget apparel, which is the exact opposite of Lauren’s high-end image.

Meanwhile, in other fashion related news, Jobs & Hire reported that five-year-old fashion designer, Mayhem of Fashion by Mayhem is going to work closely with Project Runaway to make more amazing creations.

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