Ralph Lauren Or Will Carry Out The Reorganization Plan.

U.S.A

Retail continues to be in the doldrums, not to shut down stores or to lay off workers, the father of Polo.

Still struggling.

According to the world clothing and shoe net, the net profit of Ralph Lauren surged 212% to 143 million US dollars in the second quarter of September 30th, and sales decreased 8.6% to 1 billion 660 million US dollars compared with the same period last year, higher than that of Wall Street analysts.

In the first half of fiscal year, Ralph Lauren sales fell 10.7% to 3 billion 11 million US dollars.

Ralph Lauren pointed out in its earnings report that the sharp rise in net profit during the period was mainly due to the improvement of sales volume and the reduction of sales volume of promotional products.

The picture shows the main performance data of Ralph Lauren group in the second quarter and the first half of fiscal year.

By Region:

Sales in North America plunged 16.1% to 878 million 700 thousand US dollars, down 9% in the same store, and 16.5% in the first half of the fiscal year to 1 billion 586 million US dollars.

Sales in Europe rose 3.9% to $463 million, while same store sales decreased by 6%, while sales in the first half of fiscal year decreased to 4.5% from 786 million.

Sales in Asia basically closed 216 million 800 thousand dollars last year, while same store sales rose 3%, and sales in the first half of the fiscal year dropped slightly from 0.4% to $426 million.

Sales in other parts of the world decreased by 5.1% to $107 million compared to the same period last year, while same store sales fell 6%, and sales in the first half of the fiscal year fell 4% to 213 million dollars.

As of the end of the reporting period, Ralph Lauren has 1359 sales outlets worldwide, including 469 direct outlets, 622 counters and 268 franchise stores.

In order to control costs and reduce unnecessary expenses, Ralph Lauren has shut down a large flagship store in Fifth Avenue in New York and Tongluowan in Hongkong in the past year, with a total number of 176 outlets.

Patrice Louvet, President and chief executive officer of Ralph Lauren, said in a conference call after the earnings announcement, the group expressed satisfaction with the results expected over the second quarter, and promoted the profitability of the group under the promotion of effective measures such as closing stores and layoffs.

The picture is Ralph Lauren CEO Pateice Louvet.

In addition to the continued implementation of the closed shop plan, Patrice Louvet stressed that the future Ralph Lauren restructuring plan will be carried out through streamlining the brand structure and enhancing efficiency.

Last September, Ralph Lauren accelerated the implementation of the restructuring plan, announced the closure of its Cowboy brand Denim&Supply and incorporated its business into the core.

One of the Polo Ralph Lauren.

At present, the core brands of Ralph Lauren group are Ralph Lauren, Polo Ralph Lauren and Lauren by Ralph Lauren respectively.

Patrice Louvet also revealed that the new products launched by Ralph Lauren are gaining more and more attention from millennial consumers, especially when the autumn new products have been actively responded to by consumers. Besides, the brand has launched a series of salute to the 1992 Summer Olympics to further stimulate sales recovery.

It is reported that the limited series sold millions of dollars within a few hours of public offering.

At the same time, Ralph Lauren has also stepped up its efforts to launch and promote digital and social media platforms to consolidate the success of the brand.

Patrice Louvet stressed that China is one of the most potential markets for Ralph Lauren at this stage. According to its expectation, the mainland market will earn about 50 million dollars this year. Most target consumers are about 34 years old, and men and women each account for half. Annual sales of Greater China, including Hong Kong, Macao and Taiwan, are expected to increase from 170 million to 500 million US dollars in five years.

For the Ralph Lauren second quarter's performance, Wells Fargo analyst Ike Boruchow said the group's restructuring plan is in force, although it is at an early stage, but there is still room for uplink.

Cowen&Co. analyst John Kernan believes that after the accession of Patrice Louvet, the relationship between the new management is very coordinated, which is conducive to improving the operation efficiency and productivity of Ralph Lauren, and has a positive impact on the growth of performance.

Patrice Louvet was appointed chief executive of Ralph Lauren in May this year, and took office in July this year.

Ralph Lauren, founder of creative director, still holds the right to decide on brand creativity, hiring, firing and marketing.

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For this reason, there are people in the industry who question whether the 77 year old Ralph Lauren is too old for personal brands that need new elements.

While other competitors have invited Gigi Hadid and Selena Gomez and other supermodels to take the goods with the stars, Ralph Lauren still insists on the advertising style dominated by beaches and yachts.

According to the data, Ralph Lauren same store sales have declined for three consecutive years, analysts say that only by reversing the old conservative thinking and product design can the brand regain its freshmen.

Instinet LLC analyst Simeon Siegel said earlier in an interview with Bloomberg that today's retail industry has changed a lot, and consumer preferences have changed too fast. The biggest problem of Ralph Lauren is that it changes too slowly.

According to data from fashion analysis firm Edited, the world's best-selling Polo shirt brands were Antigua, Nike and Moncler in the past six months, while Ralph Lauren ranked only twenty-first.

Due to the lack of innovation, Ralph Lauren has fallen out of the latest list of the world's top 100 brands released by Interbrand, a data analyst.

However, Ralph Lauren seems determined to prove to the industry that her heart is not old. In September of this year, Ralph Lauren 2018's first male and female spring and summer show was held in the garage of Ralph Lauren. At the same time, he displayed his collection of famous cars and held a private formal dinner, and invited Bella Hadid and other popular supermodels to show their attention.

It is reported that its collection of cars include Bugatti Atlantic in 1983, Bentley Blower in 1929, orange McLaren F1 LM in 1996, and a variety of Retro Red Ferrari.

The picture shows Ralph Lauren 2018 spring and summer show.

Patrice Louvet said at the end of the report that it will further reduce the volume of Ralph Lauren in US Department stores and parity stores in the future, so as to restore the brand image and restore the light luxury position gradually forgotten by consumers.

At the same time, the group will also pay more attention to the business of electronic commerce and provide better services for consumers.

In terms of products, Ralph Lauren plans to increase investment in product innovation while reducing sales promotion budgets.

In view of the revival of the revival movement, Ralph Lauren decided to introduce the retro series and further shorten the production cycle to better meet the needs of consumers.

It is learnt that with the gradual promotion of Ralph Lauren restructuring plan, consumers have gradually started to buy Ralph Lauren products at full price.

After the release of the earnings report, Ralph Lauren's share price rose 3.82% to $92.87 per share, with a market value of about $7 billion 450 million.

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