Mulberry's creative director is preparing to leave the company after a series of high-level disagreements.
Emma Hill, the woman credited with turning the British handbag maker into a globally recognised high-fashion brand, will step down after six years.
During her tenure, the designer, who has worked at Burberry, Marc Jacobs and Gap, courted a number of celebrity endorsements and also created the hit Alexa and Del Rey bags, named after TV presenter Alexa Chung and American singer Lana Del Rey.
Mulberry's' shares fell 9% after the label confirmed news of Hill's departure.
"Mulberry confirms that Emma has informed the company that she wishes to leave after a very successful period during which she has built a strong and talented creative team working for her," the company said.
"The main spring/summer 2014 collection has been completed and Emma continues to work in the business finalising the London Fashion Week collection which will be launched on September 15.
"The timing of her departure is under discussion and has yet to be finalised."
It has been suggested that Hill's exit follows "disagreements with management over creative and operational strategy". She is believed to have clashed with new chief executive Bruno Guillon, who joined in March 2012 from French brand Hermès, over his desire to make the brand even more expensive.
It has also been claimed that Hill is to take over from Reed Krakoff as president and executive creative director of US accessories brand Coach.
A spokeswoman for Coach declined to comment.