Ralph Lauren (RL) said on Tuesday that it has taken further steps to support its "Way Forward Plan," which was first announced in June, including layoffs, moving to a cost effective e-commerce platform and a collaboration with Salesforce (CRM) Commerce Cloud.
The company is expecting that it will incur about $370 million in charges related to the plan.
Ralph Lauren will also be closing its dedicated Polo store at 711 Fifth Ave. and will integrate those products into its flagship stores on Madison Avenue and other downtown New York locations.
The company expects these decisions, in addition to other actions, to result in approximately $140 million in annualized expense savings, which will help to fund investments in future growth.
"These are important actions we are taking to continue our evolution and deliver on the Way Forward commitments we made in June. We are looking carefully at the way consumers are shopping online and believe that shifting to the Salesforce Commerce Cloud platform will allow us to create a best-in-class solution more efficiently in all of our markets around the world," Ralph Lauren Chief Financial Officer Jane Nielsen said.