Ralph Lauren Closes Stores Or Layoffs

In order to achieve the annual cost reduction target of $140 million, Ralph Lauren recently decided to close its Fifth Avenue in New York.

Flagship store, at the same time, layoffs and restructuring of e-commerce business.

After the Polo flagship store opened in 2014, its products will be pferred to Madison Avenue.

Flagship stores, and other sales points in lower New York.

However, Polo Bar of New York's "net red restaurant" will continue to open.

"Fifth Avenue shops may not be profitable."

Analyst Chen Grazutis thinks, "it's just for promotion."

Visibility and influence, its rent may be the highest price in the world.

According to the world clothing and shoe net, Ralph Lauren signed a 15 year lease with the owner, with an annual rent of $25 million.

Two months ago, Ralph Lauren released its performance report for the third quarter of fiscal 2017, and its revenue was only $1 billion 710 million, down 12% from the same period last year.

Since the beginning of this year, the share price of Ralph Lauren has fallen by 9.9%.

Trapped in the sharp shrinkage of sales and profits, Ralph Lauren has announced that it will be responsible for the business of electric business to the Commerce Cloud platform of Salesforce.com Inc., an American Enterprise Cloud computing company.

The contraction plan comes from itself.

As early as the former CEO Stefan Larsson was in office, Ralph Lauren approved the "downsizing" plan in the name of reinvigorate its business.

Last June, the brand announced that it had cut 8% of its full-time employees and closed more than 50 stores including the flagship store in Tongluowan, Hongkong (according to its 2016 fiscal year report, the number of actual outlets was 43).

At the same time, Ralph Lauren also intends to reduce its brand in the department store and avoid excessive sales promotion.

Before that, consumers often saw Ralph Lauren and Tommy Hilfiger stacking on shelves in discount stores such as T. J. Maxx and Marshall.

In addition, by moving the business focus back to the core three brands, Ralph Lauren, Polo Ralph Lauren and Lauren by Ralph Lauren, the American fashion company, which is known to be popular with Polo shirts, is trying to reduce the cost of 180 million to 220 million dollars.

But then Stefan Larsson disagreed with the founder of the company.

The company announced in February this year that the CEO, less than a year and a half in office, will leave in May. The former Coach executive and chief financial officer Jane Nielsen is in charge of acting as CEO.

Thus, the brand founder Raloh Lauren, though relegated to the second tier, still has a strong voice.

Stefan Larsson (left) and Ralph Lauren

Ralph Lauren said the restructuring could generate a cost of $370 million, mainly for the payment of employees' dismissal damages.

The Ralph s Coffee will continue.

According to brand chief financial officer Jane Nielsen, the company will continue to try new retail mode, so as to keep in touch with new and old users.

According to plan, Ralph Lauren will release its fourth quarter performance report in May 11th, and the 2018 fiscal year is expected.

Wall Street now gives a forecast of $6 billion 70 million a year, down 8.7% from a year ago.

Before that, we may be able to see the new trend of Jonathan Bottomley, the first chief marketing officer in Ralph Lauren history, from the brand image level.

The new president who took office in April 3rd and former Vice Media chief strategist shoulders heavy responsibilities.

After all, Ralph Lauren has not seen an exciting brand image for a long time, except for the topic caused by the show.

More interesting reports, please pay attention to the world clothing shoes and hats net.