Luxury retailer is getting decimated after announcing layoffs, store closings
Ralph Lauren shares fell 9% in premarket trading on Tuesday after the company announced job cuts, store closings, and a forecast for lower revenues.
In a statement, the luxury-fashion retailer said it expected a low-double-digit decline in fiscal-2017 net revenues because of the closings, which come as fewer people shop at many traditional brick-and-mortar retailers.
The Wall Street Journal earlier reported that the company planned to lay off up to 1,000 workers, or about 8% of its full-time staff.
Click through for the top retail brands of 2016:
It's part of a string of initiatives by CEO Stefan Larsson, who assumed the position in September and will disclose a new corporate strategy to investors later Tuesday.
Larsson told The Journal that the company would refocus on its core brands Ralph Lauren, Lauren, and Polo.
EXPLORE MORE: 10 books every new grad should read
Ralph Lauren expects annualized savings of $180 million to $220 million because of these downsizing moves and anticipates restructuring charges of up to $400 million.
Now check out the best selling books on Amazon of the moment:
There's one reason the A-10 Warthog is irreplaceable
My sister's unexpected death changed the way I'll save money for the rest of my life
3 guys swore they could make gills for humans and raised $800,000, and it should be a cautionary tale for everyone