The closure is part of the NY fashion company's plan to save $140m annually. "The rent is probably one of the highest for them, and at some point it's hard to justify it". It also is shifting its e-commerce site to the Salesforce Commerce Cloud (formerly Demandware), which it says will enable a more consistent customer experience across its global digital ecosystem at lower cost, as well as exploring new retail concepts, including expanding sales of its private-label Ralph's Coffee, and developing new store formats. The shares had already slid 9.9 percent this year through Monday's close. The moves come on top of 50 store closures a year ago, a decision stemming from dwindling sales at its own stores as well as at the department stores like Macy's (m) that carry its products.
The company said the current restructuring will save $140 million per year. Ralph Lauren declined to say how many jobs were affected and said the cuts account for a small fraction of the charges.
The luxury brand on Tuesday said it will shutter the high-profile location, just a stone's throw from Trump Tower. Ralph Lauren is refocusing on its three core brands: Ralph Lauren, Polo and Lauren.
A spokeswoman for Ralph Lauren did not immediately respond to CNBC's questions regarding whether the decision to close its Fifth Avenue flagship was related to a disruption in business because of its proximity to Trump Tower. It has been one of the company's highest-profile locations in its hometown of NY, in addition to the men's and women's flagship stores on Madison Avenue. In addition to the restaurant, the company will keep seven other New York City stores open as well.
"These are important actions we are taking to continue our evolution and deliver on the "Way Forward" commitments we made in June", explains Ralph Lauren chief financial officer, Jane Nielsen.
Updates with analyst's comment in the fourth paragraph.