Ralph Lauren shares plummet after departure of CEO

Clothing firm Ralph Lauren was down over 11% after the announcement that its chief executive Stefan Larsson was leaving the company over creative differences with its namesake, founder Ralph Lauren.

The split was announced on Thursday following poor performance from the clothing brand in recent years, after being affected by the rise of e-commerce and an over reliance on department stores.

Larsson and Lauren disagreed on which direction the business should go in the future, and have agreed to part ways, causing the stock to plummet 11.66% as of 15:35 GMT.

"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 a statement. "After many conversations with one another, and our board of directors, we have agreed to part ways."

Ralph Lauren's share price was already down 22% in the last 12 months as investors showed a lack of confidence in its ability to reform to fit modern customers.

Larsson took over from Lauren as CEO of the company little more than a year ago, and had made attempts to sway away from its luxury image by shortening its supply chain significantly, mimicking the likes of H&M and Zara.

Namesake founder Lauren said that the business would continue with its plan to reshape the business.

"The board and I are committed to the execution of the Way Forward Plan and continuing to move our business and iconic brand forward," Lauren said.