Ralph Lauren Shares Fall After Annual Forecast is Cut

On Thursday, the American company known for its signature preppy ‘look’, Ralph Lauren Corp. announced a 13% fall in early trading after cutting its annual forecast. There has been a decrease in sales in malls and department stores, and the strong US dollar is cutting away at their foreign revenue, resulting in only a 1% increase in revenue this year.  Shares fell to as low as $100.75 in premarket trading on Thursday, following a 40% decline in 2015.

Chief Executive officer Stefan Larsson, previously an executive in Gap Inc., took over the company from founder Ralph Lauren in November 2015. Larsson has effected a reorganisation of the company in order to cut costs of around $110 million by end of fiscal 2017, as well as endeavouring to keep inventory low. Ralph Lauren is hopeful for the future, stating that: “While our recent results have been disappointing, I am greatly encourage by the changes that are already taking place since the appointment of Stefan Larsson”.