Ralph Lauren (RL) – Get Report shares rose on Tuesday after the New York apparel maker and retailer said it would cut an unspecified number of jobs in an effort to save $180 million to $200 million pretax.
The company expects to complete the job reductions in fiscal 2021, which ends in March. Ralph Lauren expects to realize the savings beginning in fiscal 2022.
In the meantime, the company expects to incur pre-tax charges ranging $120 million to $160 million.
Ralph Lauren shares at last check rose 1.1% to $71.94.
The move is part of a broader plan to deliver sustainable long-term growth.
“The changes happening in the world around us have accelerated the shifts we saw pre-covid, and we are fast-tracking some of our plans to match them,” Chief Executive Patrice Louvet said in a statement.
“These steps will enable us to progress our brand elevation journey and deliver Ralph’s vision in today’s dynamic environment.”
Part of that progress entails rolling out new digital initiatives designed to enable “faster and more connected decision-making from product design to market.”
The company also said it would simply and flatten its organization, including consolidating its global marketing and branding functions.
For the quarter ended June 27, Ralph Lauren reported a net loss of $127.7 million, or $1.75 a share, swinging from a profit of $117.1 million, or $1.47, in the year-earlier period.
The latest adjusted loss, $1.82 a share, exceeded the $1.75 a share loss predicted by analysts surveyed by FactSet.
Revenue declined 66% to $487.5 million from $1.43 billion in the year-earlier quarter. The latest figure lagged the FactSet analyst consensus of just short of $600 million.