Ralph Lauren stock soared and Gap shares took a hit a day after news that a top Gap executive would take over for the retiring Ralph Lauren. Bobbi Rebell reports.
American design legend Ralph Lauren is stepping down as CEO of the preppy apparel giant that bears his name. Stepping into the role - Stefan Larsson - global president of Gap's Old Navy division. Larsson is credited with reviving sales at Old Navy hitting just the right mix of trendy clothes at low prices. Jharonne Martis, Director of Consumer Research, at Thomson Reuters: SOUNDBITE: JHARRONE MARTIS, DIRECTOR OF CONSUMER RESEARCH, THOMSON REUTERS (ENGLISH) SAYING: "He understands that times have changed and that consumers really want the latest runway fashions quickly and at a value price, and he delivers this. He understands inventory at a global scale. So, the first changes that we are going to see at Ralph Lauren are probably in the omni channel strategy which is going to be key for a company, like Ralph Lauren with its global scale. " Larrson is known as an operations guy who also can execute on style in part because of his background in fast fashion at H&M. That experience translates well in today's retail environment says PwC Retail and consumer leader Steve Barr. SOUNDBITE: STEVE BARR, RETAIL AND CONSUMER LEADER, PWC (ENGLISH) SAYING: "I think, it is less about that particular transaction and what it says about retail today. Retailers have to have a clear identity whether it is brand or value and they have to execute flawlessly on the operations side. This is a marriage of both. " Ralph Lauren investors bought into the news on Wednesday, sending shares higher. Gap shares fell. The moves will take place in November.