Wed. Jul 10th, 2024

Fashion ‘giant’ Ralph Lauren is in decline

Fashion 'giant' Ralph Lauren is in decline 2
Fashion 'giant' Ralph Lauren is in decline 2

Last week, Helen Gardner and her boyfriend went shopping on Fifth Avenue – a famous avenue with high-end brands in New York (USA).

This 28-year-old customer said: `These designs are not for young people because they are too old. I used to buy Ralph Lauren clothes but only from outlet stores (specializing in selling out-of-fashion, discounted items).

Ralph Lauren founded his own fashion brand in 1967.

These are difficult times for Ralph Lauren.

Sales at its key stores were dismal.

In the middle of this week, the company announced that it will stop operating its most important store worth 370 million USD on Fifth Avenue.

Two months ago, CEO Stefan Larsson left the company because of creative disagreements with the founder.

The rapid development of e-commerce has pushed retailers into a battle for survival.

In the US, not only Ralph Lauren but also many other fashion companies such as J. Crew Group Inc, Gymboree Corp or True Religion Apparel Inc are in this situation.

Analyst Chen Grazutis at Bloomberg Intelligence commented: `People are not buying as much clothes as before. This is putting retailers, especially fashion brands, under great pressure.`

From the beginning of this year through Monday’s trading session, Ralph Lauren’s stock has fallen 9.9%.

Fashion 'giant' Ralph Lauren is in decline

Ralph Lauren is famous for its elegant and luxurious designs.

According to Cushman & Wakefield, the rate of vacant stores on Fifth Avenue is at its highest level ever.

Ralph Lauren said that the company will restructure with a plan worth nearly 400 million USD.

The company is expected to save $140 million a year after this project is completed next March, but did not disclose the number of employees affected by this restructuring plan.

The Polo store that will close operations on April 15 is Ralph Lauren’s most important location in his hometown of New York.

Ralph Lauren is committed to responding faster to new fashion trends, optimizing the time it takes to bring products to market.

Ralph Lauren’s changes may help Helen Gardner not leave empty-handed on her next visit to New York.

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