He was supposed to usher in a new era of frugality at Ralph Lauren, do away with the old man’s pet projects — but now he’s gone.
Ralph Lifshitz aka Ralph Lauren issued a statement this morning to inform people that his CEO, Stefan Larsson, was leaving the company — due to differences over the direction of the company. This is a highly unusual departure for a CEO — akin to being ousted.
Larsson had just implemented a new strategy to remove the Ralph Lauren brand from the discount racks, in an attempt to firm up margins and reinvigorate the brand. Obviously, Lifshitz did not agree.
“Stefan and I share a love and respect for the DNA of this great brand, and we both recognize the need to evolve,” Ralph Lauren, executive chairman and chief creative officer, said in a statement on Thursday.
“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. I am grateful for what Stefan has contributed during his time with us, setting us in the right direction with the Way Forward Plan,” he said.
Shares have been in a freefall for several years now, amidst tumultuous declines in earnings.
Shares are plunging by 10% on this news.
Has Ballsachs removed them from their conviction buy list yet? I suspect they were able to unload their shares already!