Ralph Lauren shops to be cut globally
US premium clothing manufacturer Ralph Lauren said it plans to cut up to 30% of its corporate real estate in North America, reduce space in Europe and Asia and close up to a dozen shops worldwide.
The company is also assessing its distribution centre situation with a view to consolidating operations to ensure sustainability and efficiency.
Combined, the company expects to reduce its gross annual pre-tax costs by about $200 million to $240 million.
The new measures are designed to improve the company's position, drive business growth and attract more young customers.
Ralph Lauren's adjusted earnings per share for its fiscal third quarter were $1.67, compared with the consensus forecast of $1.63 by analysts surveyed by FactSet. Revenue for the brand was $1.433 billion, down from last year's $1.751 billion and FactSet's forecast of $1.472 billion. Online sales were up more than 20%, the company said
CEO Patrice Louvet spoke about the online shopping tours project the company launched for flagship boutiques in Beverly Hills, New York and Paris. An online flagship boutique in Hong Kong was also launched during the quarter.
The company also launched an online Ralph Lauren Vintage shop, which sells one-of-a-kind pieces. The launch of the shop comes on the back of growing sales of second hand clothing, which is particularly popular with younger shoppers and those concerned about the environment.
Since the beginning of the year, the company's capitalisation has increased by 3.8%.