Clothing company Ralph Lauren Corp. (NYSE: RL) will shutter its flagship store on New York’s Fifth Avenue and take steps to lower costs. The company has struggled with revenue and same-store sales recently. Ralph Lauren said it would boost its e-commerce efforts as well.
Ralph Lauren reported that it would alter its Way Forward Plan “to return the company to sustainable, profitable growth and continue to move its business and iconic brand forward.” The plan is a longer term initiative to improve corporate performance.
The flagship store is located at 711 Fifth Avenue. The company will consolidate this location with the company’s Ralph Lauren Men’s and Women’s flagship stores on Madison Avenue. Additionally, some of the sales effort of the flagship will be moved further downtown in Manhattan.
The company also said there may be future “reviews of store footprints” and indicated that more stores may be closed.
Ralph Lauren has stated as well that it will enter a partnership with sales software firm SalesForce’s Commerce Cloud. This move is expected to deliver “more consistent customer experience across the global digital ecosystem …”
The company said the current restructuring will save $140 million per year. This is in addition to another $180 million to $220 million in savings that it announced last June 7. Total restructuring charges against earnings are expected to be $370 million.
On February 2, Ralph Lauren announced fourth-quarter earnings for the period that ended December 31. Revenue fell to $1.71 billion from $1.9 billion in the same quarter the year before. For the period, net income was $82 million, down from $131 million in the year-ago period. As it announced earnings, the company also said Stefan Larsson, president and chief executive officer, would leave, effective May 1.