Ralph Lauren is to step down as the chief executive of the luxury fashion house he founded 48 years ago.

The designer will be replaced in November by Stefan Larsson, president of Old Navy, the low-price clothes brand owned by Gap Inc.

Ralph Lauren, who will turn 76 in October, plans to stay on as the chief designer for the label.

The news caused Ralph Lauren’s shares to rise 3.9% in post-trading hours. Shares in Gap fell by 3.4%.

Speaking of his replacement, Ralph Lauren said: “He understands what dreams are. In this business, it’s about dreams because you are dreaming ahead and you’re about progress and change and newness.”

Ralph Lauren corporation – well-known for its polo shirts – has expanded from selling clothes into the restaurant trade in recent years.

Stefan Larsson, 41, led Old Navy from 2012 and has been credited with boosting sales, even as other Gap labels faltered. Before taking over Old Navy, he worked for the Swedish brand H&M for 15 years.

Ralph Lauren fashion house made $7.5 billion in sales in 2014.

Ralph Lauren said his successor was “exceptionally talented” and would bring “a fresh and exciting global perspective” to the company.