Shares of Ralph Lauren dropped more than 2 percent Tuesday after the clothier detailed a restructuring that calls for job cuts and store closings.
Ralph Lauren also said it expects to incur charges of up to $400 million in fiscal 2017 because of the restructuring plan and an inventory charge of up to $150 million. "These charges are expected to be substantially realized by the end of fiscal 2017," the firm said, in a statement.
The company expects the plan to lead to a double-digit drop in revenue for fiscal 2017.
That said, the company says the plan should result in about $180 million to $220 million in annualized expense savings.
"We have assessed every value-creating component of the company and, with our Way Forward Plan, we will build on our strengths, refocusing on our core brands and instilling a financial discipline that is highly focused on return on investment," President and CEO Stefan Larsson said, in a statement.
Ralph Lauren's stock has fallen more than 15 percent this year and 31 percent over the past 12 months.
RL 12-month chartSource: FactSet