Ralph Lauren Forecasts Painful Transition Year
- Sales will decline in the low double digits, company predicts
- New CEO is closing stores and cutting jobs in turnaround bid
Ralph Lauren Corp. tumbled as much as 10 percent after predicting a plunge in sales this year, showing the challenges facing Chief Executive Officer Stefan Larsson as he tries to turn around the nearly 50-year-old brand.
Larsson, who unveiled his vision for the company for the first time since taking the reins last year, will eliminate three layers of management, slash 1,000 jobs and shutter stores as part of his “Way Forward” plan. The restructuring costs will amount to as much as $400 million, the company said on Tuesday. It also will refocus on its three core brands: Ralph Lauren, Polo and Lauren.