Ralph Lauren Corp. (NYSE: RL) Ralph Lauren Group’s new CEO Stefan Larsson “Wall Street Journal” on a large scale before the visit revealed that closed shop and thousands of layoffs in the report published on Monday, disc Group shares today trading session plunge more than 10%. With the Group’s restructuring plan in detail in today’s first Investor Day after shares fell gradually narrowed to 2.49% midday.
Ralph Lauren Corp. warned today following the fiscal year 2016 recorded a 2.8% revenue decline in the current fiscal year 2017 revenue will decrease because the department store distribution, closed part of the self-stores, discounts and reduced passenger to shop continued weakness in the further sharp drop of 11% -13%, far exceeding market expectations fell 4%.
Late last year took over as CEO from founder Ralph Lauren Ralph Lauren in the hands of Stefan Larsson pointed out that while the Group of 7 per cent over the past three years, revenue growth, but the performance is not matched with a strong brand, and even cause Disappointed. To this end the Group in the restructuring plan on the basis of the previous deepening reform, named “Way Forward” restructuring plan contains closed more than 50 retail stores, cut about 1,000 jobs (accounting for about 8% of the total number of full-time employees), to get rid of three layer management, refocus luxury product line Ralph Lauren and two lower-end brands and Lauren Polo and other measures, is expected to generate $ 400 million of restructuring charges, plus $ 150 million of inventory write-downs.
As of April 2 2016 fiscal year end, the group had 493 directly managed retail stores and about 26,000 employees, of which 15 000 full-time employees.
Stefan Larsson will use its belonging to the world’s second-largest clothing retailer Hennes & Mauritz AB (HMb.ST) fast fashion brand H & M and successful fast fashion of Gap Inc. (NYSE: GPS) Gap Inc. Group brands Old Navy old Navy’s expertise and experience to promote Ralph Lauren Ralph Lauren Corp. Group to speed up the production cycle (from 15 months to nine months) and attracting younger consumers, hoping to solve the customer aging, and this resistance to the retail industry’s overall decline.