The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Ralph Lauren Corp., reeling from tumbling sales and profit, will close its flagship Polo store on Fifth Avenue, revamp its e-commerce operations and cut jobs in a $370 million shake-up.
As part of the changes, Ralph Lauren will shift its digital operations to a platform run by Salesforce.com Inc.’s Commerce Cloud, the company said on Tuesday. It’s also streamlining its organisation and shuttering other offices and stores.
The move follows the abrupt announcement in February that chief executive officer Stefan Larsson was leaving the fashion house. He had been tasked with leading the company's turnaround, but clashed with eponymous founder over creative differences. Chief financial officer Jane Nielsen, a former Coach Inc. executive, is taking the reins as acting CEO while Ralph Lauren searches for a new leader.
“We continue to review our store footprint in each market to ensure we have the right distribution and customer experience in place,” she said in a statement Tuesday.
The restructuring plan will bring cash expenses of $185 million and a similar amount of non-cash charges, the company said. The changes are expected to save $140 million a year by their completion, which is slated for the end of the next fiscal year in March. Ralph Lauren declined to say how many jobs were affected.
The Polo store, which is closing April 15, has been one of Ralph Lauren’s highest-profile locations in its hometown of New York. The company still has seven other stores — along with its Polo Bar restaurant — in the city.
The shares have fallen 9.9 percent this year through Monday’s close. They were down an additional 1.2 percent to $80.42 as of 9:31 am on Tuesday.
The recent banking drama, starting with Silicon Valley Bank earlier in the month and spreading to Credit Suisse Group AG last week, has roiled markets, sparking fears of further contagion.
His redefinition of contemporary portraiture is just one facet of the young photographer’s stunning body of work, writes Tim Blanks.
Traditional auction houses like Christie’s, Sotheby’s and Philips — known for selling Warhols, Picassos and antiques — are using Birkins and Jordans to cultivate their next generation of collectors.
With the UK no longer offering tax breaks to international shoppers, customers are instead flocking to Paris and Milan.