Ralph Lauren will evolve its product, marketing and shopping experience to increase desirability. It will reduce supply chain lead times with better sourcing and multi-channel distribution and expansion strategy. It will also right-size cost structure and have an ROI driven financial model to make more investments in the brand.
The company will incur restructuring activities' expenses of up to $400 million and of $150 million (inventory charges), which will result in cost savings of approximately $180-220 million annually.
It will also strengthen its leadership team and create a more nimble organisation by moving from an average of 9 to 6 layers.
“We have assessed every value-creating component of the company and, with our Way Forward Plan, we will build on our strengths, refocusing on our core brands and instilling a financial discipline that is highly focused on return on investment,” Stefan Larsson, president and CEO of Ralph Lauren commented.
“Our multi-year growth plan will lead Ralph Lauren – one of the few truly iconic brands in the industry – to profitable sales growth and long-term shareholder value creation,” he added. (MCJ)
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