The fashion house said it was ready to close up to ten brand stores in the short term.
The iconic American brand Ralph Lauren, which has been producing luxury clothing, shoes, and perfumes for more than fifty years, has run into financial difficulties amid a pandemic and restrictions on operations worldwide.
The company announced a series of measures that will be taken soon to improve financial and operational performance. In particular, it will consolidate corporate real estate in the U.S. and Canada from the company's portfolio, Interfax news agency writes.
Ralph Lauren will also have to abandon some European and Asian markets: the brand plans to reduce retail spaces and close several stores. Due to the latest press-release, the fashion house declared its readiness to close up to ten brand stores worldwide in the short term.
It is expected that the measures taken will allow the company to improve business efficiency in the conditions of reduced demand. As expected, Ralph Lauren will reduce annual costs due to business optimization by $200-240 million.
Earlier it became known that the fashion house's revenue in the third fiscal quarter was $1.43 billion compared to $1.75 billion a year earlier, which was lower than analysts' forecasts. Growth in sales through online channels was about 20%. Ralph Lauren opened Virtual Store Experiences in New York, Los Angeles, and Paris last year. The brand also opened the first online store Ralph Lauren Vintage, which specializes in selling exclusive items created in a single copy.
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