Ralph Lauren tightens its belt

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.

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».

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.