(Adds details, background, shares)
April 4 Ralph Lauren Corp said on Tuesday
it would cut jobs and shut its flagship Polo store on Fifth
Avenue in New York City, among other office and store locations,
as part of a cost-cutting plan.
The luxury retailer also said its e-commerce business would
move to Salesforce.com Inc's cheaper and more efficient
Commerce Cloud platform.
Ralph Lauren had said last year it was building an in-house
global e-commerce platform.
The New York-based retailer also said on Tuesday that it
would integrate its products from the Fifth Avenue store into
the Ralph Lauren men's and women's flagship stores on Madison
Avenue and its downtown locations. (rlauren.co/2nTdu2h)
Ralph Lauren said it expects to incur about $370 million in
charges and save about $140 million from the new measures, which
are part of a cost-cutting plan announced in June.
The retailer did not specify how many jobs it would cut.
Ralph Lauren said in June it would cut about 1,000 jobs and
close 50 stores to lower costs and revive sales growth.
Ralph Lauren, like other luxury brands, has been struggling
as Americans spend lesser on apparel and accessories, resulting
in falling sales in the last seven quarters.
The company's margins have also taken a knock as department
stores discount heavily to get rid of excess inventory.
Ralph Lauren's lower-end Polo and Lauren brands are facing
competition from fast-fashion retailers such as H&M and
Ralph Lauren's shares dipped 1.3 percent to $80.32 in early
(Reporting by Gayathree Ganesan in Bengaluru; Editing by