Ralph Lauren (NYSE:RL) were trading higher in premarket trade on Wednesday, a day after the apparel company said its founder will step aside as chief executive officer and he will be replaced by Stefan Larsson, the president of Gap’s (NYSE:GPS) Old Navy division.
Shares jumped as much as 5.9% as of 7:56 a.m. in New York. The stock had lost 44% since the beginning of the year through the close of trading on Tuesday.
Founder Ralph Lauren will remain as executive chairman and chief creative officer, the New York-based company said in a statement late on Tuesday.
Larsson will join Ralph Lauren and its board in November. He is credited with reviving sales at Old Navy division, successfully applying a model of offering trendy clothes at affordable prices.
Meanwhile, shares of Gap fell as much as 6.9% in early trading after Mizuho Securities downgraded the stock to "underperform" from "neutral" on concerns about the impact of Larsson's departure.