Ralph Lauren Is Facing Financial Challenges.

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The famous Ralph Lauren company is facing financial challenges.

In order to turn losses into profits, the new president Stefan Larsson plan restructured company hopes to save 220 million US dollars in Ming (2017) year.

In November, he replaced Larsson, founder of Ralph Lauren, as chief executive's Larsson. He introduced his detailed plans to investors and analysts in June 2016, including closing at least 50 cities, laying off 8%, about 1000 people, and reducing management levels to form a more streamlined management structure.

He also hoped that the company's brand would be more consistent with the current brand.

In order to meet the needs of customers.

Less inventory and more focus on the development of the company's core brands are listed in his reform plan.

"Our business performance has been poor in the past three years," he said.

We must do better and provide customers what they really like. "

Ralph Lauren has been losing sales and profits in recent years, failing to catch up with the rapidly changing retail trend and fashion trend.

As of April 2nd of this year, the profit of the company dropped by more than 22% after the cost of restructuring was removed.

President Larsson's reform plan marks a major change in Ralph Lauren group.

The company expects to save 180 million to 220 million dollars in 2017.

The cost of restructuring is estimated at $400 million, and the cost of inventory reduction is another $150 million.

The company is expected to turn into a profit in 2019.