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NEW YORK, United States — Ralph Lauren Corp. said it's trimming its workforce as the preppy apparel maker changes its structure and accelerates plans to shift to more online sales.
The cuts are expected to be made by the end of its fiscal year, which ends in March, and the company didn’t say how many jobs will be eliminated. This will result in pretax charges of $120 million to $160 million. Annual savings, starting in the company’s next fiscal year, are seen reaching as much as $200 million.
The restructuring comes as Ralph Lauren struggles to cope with the economic fallout from the coronavirus pandemic like most clothing retailers, with sales dwindling over the past two quarters. The company has declined to give guidance for its performance amid upheaval in consumer spending.
“The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our plans to match them — including advancing our digital transformation and simplifying our team structures,” said Patrice Louvet, President and Chief Executive Officer.
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In August, Louvet said management was undertaking a review of its organization, including how it structures its teams and its corporate office real estate footprint.
Ralph Lauren shares rose as much as 4.9 percent in New York trading on Tuesday. The stock has fallen almost 40 percent this year through Monday’s close.
The company did not immediately respond to a request for more information.
By Kim Bhasin
