On Tuesday, Ralph Lauren said it would cut jobs due to shuttering store locations and corporate offices including its Polo flagship store on Fifth Avenue in New York City.
These actions are part of the Way Forward Plan of the retailer who is struggling. The plan was outlined first in June of last year and Ralph Lauren is expecting to see as much as $140 million in savings of annualized expenses from the plan.
The plan is forecasted to be finished by March 2018 the end of its fiscal year. In addition, Ralph Lauren is expecting to have $370 million in charges that are cash related which will include for the most part benefit and severance charges, though the business did not specify how many jobs would be eliminated, its closure costs, lease terminations or cost of contraction terminations.
As the Polo store on Fifth Avenue closes, Ralph Lauren said it would shift its inventory to other locations across the city as it continues operating seven locations and a bar restaurant.
The company said as well that it was investigating how to expand the retail concepts of the brands and develop new formats for stores.
Related to that, the company announced plans for the revamping of its e-commerce site through collaboration with Salesforce. Through that, it is hoping to provide more consistent experiences by customers across its in-store and the online platform of its brands.
The CFO at the company Jane Nielsen said through a prepared statement that the actions taken were important for the execution of it commitment with the Way Forward plan.
Ralph Lauren’s share price was down 4.45% at session end on Tuesday following its announcement which added to losses of over 13% during the past 12 months, 10% that came during the past quarter.
In February, officials of the company announced intentions to end relations with CEO Stefan Larsson, who had up to then, been at the helm just over one year.
The announcement of Larsson leaving followed a difference of opinion the CEO had with the founder of the brand and its namesake Ralph Lauren.
The high-end apparel brand based in the U.S. has had 9 consecutive quarters of declines in sales at same-stores but is not alone. J.Crew announced on Monday that executive director and president Jenna Lyons a member of the company for 26 years would leave the company and a replacement would not be sought.