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Business

Ralph Lauren slashing jobs, closing stores

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Opening sequence

Business

Ralph Lauren slashing jobs, closing stores

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00:00:01
>> Ralph Lauren is the latest icon of the retail world to fall on hard times. The company behind the quintessential all American look announcing Tuesday that it is cutting 2,000 jobs, closing fifty stores, and expecting a sales decline for the rest of the year. Ralph Lauren's problems are years in the making says Thomson Reuters director of consumer research, Jharonne Martis.
00:00:24
>> When you are a luxury brand it is very hard to mass produce and keep that illusion of being exclusive. Because Ralph Lauren grew at such a big speed and they licensed their name to everything, and started to mass produce, they actually diluted their own brand. They hurt the brand image.
00:00:39
>> New CEO Stephen Larson hopes to turn it around. Larson, looking to repeat the success he had during his 15 year tenure at H&M, and his most recent job reviving Old Navy.>> They're gonna be managing their supply chain much better. By reducing the inventory, not only are they cutting down production, but they're also going to be reducing inventory that they're sending to the department stores, which is major.
00:01:01
The second thing that the CEO is planning to do is he's cutting three layers of management.>> Larson is taking over from founder and namesake, Ralph Lauren. And there is some hope out there he is the man for the job. Shares of Ralph Lauren, initially dropping 11% on the dismal news, but erased most of that loss by the end of the day.