Ralph Lauren CEO to depart, shares down 10%

Shares of Ralph Lauren Corp. fell 10% Thursday as the fashion company announced its CEO would depart in three months.

Stefan Larsson, the former global president of Old Navy, in November 2015 took over as CEO for Ralph Lauren, who remained as executive chairman and chief creative officer. But the company said a difference of opinion with Lauren himself over the company's direction will result in Larsson leaving May 1.

Chief Financial Officer Jane Nielsen will step in during a CEO search, the company said. “Stefan and I share a love and respect for the DNA of this great brand, and we both recognize the need to evolve," Lauren said in a statement. "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. "

Ralph Lauren to close 50 stores, cut jobs in bid for profitability

Last year, the company began a refocusing plan to enhance the brand. "That plan is on track -- I am proud of the progress the whole team has made and I am committed to ensuring its uninterrupted execution," Larsson said in a statement. "Ralph will always be an inspiration to me, and I am grateful to have had this experience.”

Ralph Lauren (RL) shares were down more than 11% Thursday to dip to $77.39. Shares had been down about 6% over the past six months.

With Larsson leaving "seemingly abruptly, equity analyst Tuna Amobi at CFRA Research reduced his position on Lauren stock from "Hold" to "Sell" and cut the 12-month target price by $32 to $78 per share. "We see some uncertainties amid the execution of the 'Way Forward' restructuring plan," he wrote in a note to investors Thursday.

Ralph Lauren released its third-quarter earnings before the market opened. Adjusted earnings of $1.86 per share, beat expectations of $1.64 per share, based on analyst polled by S&P Global Market Intelligence.

Ralph Lauren reported net income of $155 million, compared to $121 million, compared with $193 million from the same period a year ago. Analysts had expected $136.2 million.

Revenue fell 12% to $1.71 million, surpassed analysts' expectations of $1.7 million.

As part of its restructuring plan, the company during the quarter lowered inventory levels, reduced items brought to market and closed 12 underperforming stores. It also hired as creative director, Kevin Carrigan, formerly with Calvin Klein.

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.