Ralph Lauren tightens its belt

In view of the negative impact on its accounts of the depreciation of currencies such as the euro, the US company announced a reorganization of its business.

The Luxonomist. 14/05/2015
Ralph Lauren
Ralph Lauren. Click for more information

As has happened with other international corporations dedicated to luxury, Ralph Lauren has seen the depreciation of the euro has affected their accounts. In its last fiscal quarter, the company based in New York reported net income of $ 124 million, compared with 153 million a year earlier. Net earnings for all of its fiscal year: reach $ 702 million, $ 74 million less than a year earlier.

Ralph Lauren, Chairman and CEO of the group, has announced the creation of a new structure global brand management, to drive future growth of the company and shield against currency swings. Among the new projects include the female line of Polo and Polo Sport Development, scheduled for autumn.

Ralph Lauren 2
«Suede-Silk Stella Dress» by Ralph Lauren. Click to buy

In the company they are not very disappointed because they have been better than expected, given the complex economic and social environment in some markets. Ralph Lauren is still a moneymaker. Operations director Jacki Nemerov says, «While global foreign exchange and consumer spending remain unpredictable, we are taking decisive action to offset some of these external pressures in progress».

Ralph Lauren S/S 2015. Haz clic para comprar
Ralph Lauren S/S 2015. Click to buy

For its fiscal year 2016, Ralph Lauren expects at least maintaining results in constant currency, that is, without the effect of currency exchange efecte him excessively. The reorganization of the group announced by President could cost between 70 and 100 million.


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