Ralph Lauren Corporation RL announced measures to accelerate its “Next Great Chapter plan”, which includes creating a simplified global organizational structure and rolling out improved technological capabilities. Well, the company’s share price increased 5.4% during trading session on Sep 22.

Ralph Lauren unveiled its plans to curtail its global workforce by the end of fiscal 2021 under its “Fiscal 2021 Strategic Realignment Plan”. By reducing its workforce it expects to see gross annualized pre-tax expense savings between $180 million to $200 million. These savings are anticipated to be realized mainly from the start of fiscal 2022. However, management is likely to incur total pre-tax charges in the range of $120-$160 million in this process.

Under the company’s Simplified Organizational Structure initiative, it plans to consolidate its global Marketing and Branding functions. Also, Ralph Lauren will create a Consumer Intelligence and Experience (CIX) platform which will leverage consumer insights and predictive

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Pedestrians walk past a Ralph Lauren Corp. store in the Central district of Hong Kong, China, on Sunday, Oct. 27, 2019.

Paul Yeung | Bloomberg | Getty Images

Luxury apparel maker Ralph Lauren will cut 15% of its global workforce by the end of its fiscal year in a company-wide restructuring to lower costs and move more of its business online, it said on Tuesday.

The company had a total workforce of 24,900 as of March end and based on that, the plan could impact more than 3,700 jobs.

The COVID-19 health crisis has hammered demand for high-end handbags, apparel and accessories in retail stores, forcing luxury goods companies to slash costs and slow brick-and-mortar expansion plans.

However, their e-commerce sales have surged. Ralph Lauren said it would invest in digital platforms to support e-commerce operations, expand product personalization and add new features like augmented reality.

It will also move

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Ralph Lauren is taking steps to accelerate its Next Great Chapter plan to deliver long-term growth and value creation. Among them is a 15 percent reduction in its 24,000-member workforce in an effort to establish a simpler global organizational structure and the rolling out of enhanced technology platforms.

As reported last month, the $6.2 billion company began a strategic review to support future growth and profitability and create a sustainable cost structure. The review included three initiatives: The evaluation of team structures and ways of working; real estate footprint and related costs across distribution centers, corporate offices, and direct-to-consumer retail and wholesale doors, and the group’s brand portfolio.

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As part of the review of its headcount, Ralph Lauren plans to cut its global workforce by about 3,600 employees by the end of fiscal 2021, which is expected to result in a gross annualized pre-tax expense swing of

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Dive Brief:

  • Ralph Lauren has only grown its North American digital sales by 3% since the first quarter of this year, a large concern considering that is far less growth than its peers, according to a new Credit Suisse report emailed to Retail Dive. 

  • As part of the process to clean up its North American business, Ralph Lauren is trying to limit “daigou” sales, a form of cross-border exporting in the luxury industry. Credit Suisse describes these consumers as Asian buyers that purchase items via a U.S. website promotion and transport them to China or Korea. It may take a few quarters before the problem is resolved and North American digital sales can increase, according to Credit Suisse. North American domestic sales, however, were up year over year in the high teens.

  • The brand also noted in its meetings with Credit Suisse that it plans to take the pandemic as

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