Wednesday, 8 June 2016

Ralph Lauren to cut about 1,000 jobs and shut shops

Ralph Lauren Corp is cutting about 1,000 jobs and closing 50 stores as part of a sweeping plan to lower costs and revive sales growth at the luxury fashion brand.

Shares of Ralph Lauren, which also forecast declines in full-year and first-quarter revenue, fell as much as 10.4 percent to $86.32 in early trading on Tuesday.

The jobs being eliminated represent about 8 percent of the company's full-time jobs, spokesman Ryan Lally told Reuters.

Ralph Lauren, like some other luxury brands, has been struggling amid sluggish spending on luxury apparel and accessories. The company's margins have taken a knock as department stores discount heavily to get rid of excess inventory.

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