The pandemic has wiped out several fashion retailers in last few months and so Ralph Lauren has already started working on strategies to avoid joining the list of insolvent clothing retailers.
It’s been a tough last quarter for Ralph Lauren too!
While the quarterly sales of the American fashion retailer have dipped by a huge 57 per cent, it has seen a loss of US $ 1.82 per share, contrary to US $ 1.73 that analysts had predicted.
In North America alone, the sales for the retailer plunged by a worrying 77 per cent. And if analysts are to be believed, the demand for clothes and accessories are not going to increase anytime in future with world economy on the verge of entering recession.
The retailer has, reportedly, confirmed that it is now planning to restructure with focus on organising teams, its corporate office real estate footprint and also revisiting its wide repertoire of brands.
The company has said that it is clear in its approach to study consumer behaviour and retail landscape and come out with measures that would help regain its old glory in coming 3 to 5 years.
There are reports that Ralph Lauren may open as many as 90 stores by the end of this year, with majority in Asia and some in US and Europe. It has already resorted to cost cutting and furloughing of staff.
Besides, there’s a goal of having people of colour represent 20 per cent of Ralph Lauren’s leadership at world level by 2023.
The shares have dropped and investors are at present not happy, but at Ralph Lauren, there is a vision now and there are efforts to give a shape to that vision.
