Since 1967, Ralph Lauren has established his fashion empire as one of the top American luxury brands in the world. Now at 75, the fashion designer has decided to step down as the CEO of his namesake company.

New York Times reports Lauren appointed Old Navy President Stefan Larsson to take over. The 41-year-old head of the mass-retailing company, who was initially considered as an unlikely choice, will take the chief executive seat of the Ralph Lauren Corporation in November.

Although this seems like Lauren is retiring, the multi-billionaire clarifies this is just a start of a new "partnership" and will still remain active as executive chairman and chief creative officer of the company.

"When they start designing things I can't understand, I'll quit," he said. "But I don't feel like I'm stepping back now."

When asked if Larsson would be a good successor, Lauren said, "I would say so."

He added he didn't think Larsson was fit for the job when a board member recommended him at first.

"So I said, 'Where is he from?' And they told me: 'Old Navy and H&M.' I said: 'Why would I be looking for that? We're building a great luxury company,'" he recalled.

Even before they met for a private dinner in New York, Lauren never imagined he'd actually hire him. "I was thinking to myself: 'Why am I here? It's a waste of time."

Larsson shared he thought meeting with the luxury brand magnate was odd, too. "I was hesitating," he said. "Why was he interested in speaking with me?"

But now it looks like the two of them had a great talk.

"I interviewed lots of people who were in luxury. But Stefan has a great quality that made me say: 'You can be my new C.E.O.,'" Lauren explained. "He's unique as a man, a man who's capable of building businesses and growing companies, but at the same time he's sensitive to people's feelings."

The fashion tycoon added he thinks he could learn from the H&M and Old Navy president as well. "If I thought there was nothing I could learn from Stefan, he would not be here."

According to Forbes, Ralph Lauren's net worth is currently at $6 Billion.