Ralph Lauren to work on finance related aspects

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)

Fibre2Fashion News Desk - India