Ralph Lauren's New CEO Wants To Change Every Aspect Of The Company

Based on its stock performance, Ralph Lauren Corp RL's business is in trouble. Shares have lost 15 percent since the start of 2016 and more than 30 percent over the past year.

Ralph Lauren's stock was also under heavy selling pressure on Tuesday and hit an intra-day low of $86.25 - within striking distance of a multi-year low of $82.15. The catalyst for the decline was management's lower than expected outlook it offered during an investor presentation.

According to The Washington Post, Ralph Lauren's new CEO Stefan Larsson's presentation represents a "sweeping plan" to fix the business. The executive's strategy involves "shakeups" in "virtually every corner" of the business.

Larsson took over the top ranks from Ralph Lauren, the brand's founder last year.

Larsson said he plans on closing 50 underperforming stores representing around 10 percent of the fleet. A restructuring program will also result in the elimination of around 1,000 jobs and yield $220 million in annualized savings.

"My goal is to focus in on the core of what made us great," Larsson said.

One of the core aspects that make the brand great is its high-end products that account for 70 percent of sales. In other words, the company may be looking to get rid of unproductive brands and products that aren't considered to be in the high-end.

Larsson will also be looking to use his 15 years of experience as an executive at H&M as the fast-fashion giant is doing just fine in the current slumping apparel and retail market.

For example, he will introduce methods of production which calls for buying large volumes of cloth and designers can decide later on what to make from it. He previously used this strategy at his last job as global president of Old Navy and is widely credited with jolting the brand.