NEW YORK ( TheStreet) -- Procter & Gamble ( PG) announced it is replacing Chairman and CEO Bob McDonald with former chief A.G. Lafley. The consumer products company announced that McDonald is leaving the company, effective immediately. The move comes after activist hedge fund manager Bill Ackman has continued to publicly criticize McDonald's performance. Ackman is head of Pershing Square Capital Management, which has a 1% stake in Procter & Gamble. Lafley, who will also assume the roles of president and chairman, was CEO of Procter & Gamble from 2000 to 2009. He was credited with helping to lift P&G through focusing on the consumer and making acquisitions like its buyout of Gillette in 2005. Lafley said he plans to continue the turnaround plan begun by McDonald last year, which includes a goal to cut $10 billion in costs through 2016. P&G has lost market share in some of its established businesses due to competition from rivals like Unilever, which offers competing products at often lower prices. Abercrombie & Fitch ( ANF) reported a bigger-than-expected drop in same-store sales for the fiscal first quarter and issued a full-year earnings outlook below analyst estimates. Abercrombie reported an 8.9% dip in sales to $838.8 million, short of Wall Street's expectations of $941 million. Same-store sales fell by 15%. The teen apparel retailer said it lost $7.2 million, or 9 cents a share, in the quarter, compared with a year-earlier loss of $21.3 million, or 25 cents a share. Analysts had expected a loss of 5 cents a share. CEO Mike Jeffries attributed the weaker-than-expected results to "more significant inventory shortage issues than anticipated, added to by external pressures." Jeffries said that the merchandise shortage problem was "largely" resolved. Jeffries has come under fire as of late after comments he made in an interview with Salon.com seven years ago resurfaced, in which he referred to the "exclusionary" nature of the brand and how the company wanted only "cool" and "good-looking" kids to wear its clothes. Looking ahead, the company forecast earnings per share of 28 cents to 33 cents for the current quarter, in line with the Street's expectations of 31 cents.