Luxury Brand Ralph Lauren New CEO Wants To Pform Survival Machine

According to US media reports, under the leadership of CEO Stefan Larsson, Ralph Lauren will be pformed into

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The CEO was an executive at fast fashion H&M and Old Navy, and joined in October last year.

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Ralph Lauren has declined in every quarter since its 2016 fiscal year, resulting in a year-round drop of nearly 3% in sales.

The company official revealed that the negative impact of the closing stores, inventory backlog and the weak flow of physical stores, business is expected to be more difficult this year, and net revenue will double digits.

As of April 2nd,

Net profit in 2015 dropped 43.6% to $396 million, and total revenue decreased by 2.8% to $7 billion 410 million.

Ralph Lauren's share price fell 30% last year, and its share price fell further to 2% US $94.38 as of Tuesday afternoon.

The company has not disclosed the number of layoffs and the number of closed stores, but according to the analysis of the Wall Street journal, the company will lay off 1000 employees and close 50 high-end consumer shops.

At present, the company has 493 direct retail stores. By the end of April 2nd, the total number of employees was 26 thousand.

Some analysts believe that the layoffs are only

Streamlining part of the plan, due to the cumbersome production and operation mechanism, so that Ralph Lauren product design and production cycle for more than a year, in today's most fashionable fashion industry is outdated.

Stefan Larsson explained that the company hopes to simplify the operation management mechanism and make Ralph Lauren a more modern clothing brand.

The reform, named "forward plan", was led by CEO Stefan Larsson. He said that the company needed a new business mode to regain the market share, that is, the pformation of the company's business mode to fast fashion. The company expects that the restructuring cost will reach 400 million dollars, and the related cost of cleaning up inventory will reach US $150 million, but the company expects to save 180 million to 220 million dollars a year for the company after the reorganization is completed.

Stefan Larsson said last month in the financial report conference call.

We should return to the core business and make a comprehensive review of the company's structure. He pointed out that the company's "forward plan" will further contact with consumers. He also stressed that only a streamlined and efficient corporate structure can make Ralph Lauren's classic style and quality products reborn.

Stefan Larsson, 42, has been holding parity in the US GAP group for the past 3 years.

Brand OLD NAVY global president, led the company's revenue growth of 8% in 2014, reaching 6 billion 620 million dollars, ranking the most profitable brand of GAP group.

Before that, he was par in Sweden.

H&M has been in office for 15 years to help companies expand their global business to 44 countries, with annual turnover increasing 5 times to 17 billion dollars.

In recent months,

Industry sales have almost declined, and Ralph Lauren has been faced with large numbers.

And accessories inventory challenges.

Stefan Larsson said in an interview that the company will focus on developing its three main classic brands: Ralph Lauren, Polo and Lauren.

In fact, the organizational change of Ralph Lauren started in February last year. At that time, the company said that the new brand management and operation mode would save $100 million a year for the company. Due to the pformation of the company's operation mode, Ralph Lauren had laid off 750 people in May last year.