Ralph Lauren closing flagship Manhattan store and other locations

Tabitha Dunn
April 5, 2017

Ralph Lauren Corp RL.N 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.

Despite cutting costs, Ralph Lauren reportedly has plans to explore "new retail formats", including the expansion of Ralph's Coffee. Items from the store will be moved to its other NY stores. Larsson will is scheduled to exit next month. During the fiscal year ending on March 31, the company had already closed 50 stores.

How that affects the Polo Ralph Lauren Factory Store at Williamsburg Premium Outlets, if at all, is not clear. The closures in NY represent the next step in that turnaround, CFO Jane Nielsen said in a statement Tuesday, indicating that the company can't ignore the pull of e-commerce.

Ralph Lauren's three-story Fifth Avenue store was opened in late 2014 as a home for the Polo brand clothing. "We are looking carefully at the way consumers are shopping online and believe that shifting to the Salesforce Commerce Cloud platform will allow us to create a best-in-class solution more efficiently in all of our markets around the world".

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"The Polo brand remains strong, and we expect it to further strengthen as we continue to evolve the Polo product and marketing".

Shares of Ralph Lauren fell $4.18, or 5 per cent, to $77.19 Tuesday afternoon, following the news.

"These are important actions we are taking to continue our evolution and deliver on the Way Forward commitments we made in June", says CFO Jane Nielsen. What's more, the once top-of-class retailer reported early this year that net revenue for the quarter ended December 31, which included the holiday shopping season, fell 11.9% to $1.7 billion, while profit collapsed 37.4% to $82 million.

Other reports by Guamnewswatch

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