Ralph Lauren shares fell 9% in pre-market trading on Tuesday after the company announced job cuts, store closures, and a forecast for lower revenues.
In a statement, the luxury-fashion retailer said it expects a low-double-digit decline in fiscal 2017 net revenues due to the closures, which come as fewer people shop at many traditional brick-and-mortar retailers.
The Wall Street Journal earlier reported that the company planned to lay off up to 1,000 workers, or about 8% of its full-time staff.
It’s part of a string of initiatives by CEO Stefan Larsson, who assumed the position last September and will disclose a new corporate strategy to investors later Tuesday.
Larsson told the Journal that the company will refocus on its core brands — Ralph Lauren, Lauren and Polo.
Ralph Lauren expects annualized savings of $180 million to $220 million due to these downsizing moves, and anticipates restructuring charges of up to $400 million.
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