US: Ralph Lauren to axe Rugby brand
Luxury apparel firm Ralph Lauren Corp plans to axe its Rugby diffusion line to focus instead on growing its core labels.
The company says it will close Rugby's 14 stores and its e-commerce website by the end of fiscal 2013 and expects to record pre-tax charges of US$20-30m in the second half of the year.
Speaking on a conference call to investors last week, president and CEO Roger Farah said: "This was not an easy decision to make, considering the hard work of the Rugby team over the few years and the tremendous loyalty of the Rugby core customers.
"We continue to believe that we can service the millennium Rugby customer with brands such as Denim & Supply and Club Monaco."
The news came as the company lowered its full-year sales guidance after second-quarter profit slipped 8% to $214m.
Ralph Lauren Corp also operates 103 Ralph Lauren stores, 59 Club Monaco stores, and 201 Polo factory stores and 16 Rugby stores, along with 474 concession shops worldwide. Its global licensing partners operate 144 stores.
Earlier this year it ended a five-year agreement to sell the exclusive American Living lifestyle line at US department store retailer JC Penney.
Omni-channel services may be delivering, but they can be complex. The goal is delivering a seamless omni-channel experience for apparel buying consumers and if the tech doesn't work, the sales aren't ...
US department store operator JC Penney has been forced to abandon a central part of its turnaround plans after the strategy failed to gain traction with consumers. ...
More executives have departed JC Penney after CEO Ron Johnson was ousted just over a week ago. ...
JC Penney has said it will draw US$850m of its $1.85bn revolving credit facility, and will look to raise more capital. ...
- Where next for 3D design and prototyping?
- What Marks & Spencer's numbers mean for clothing
- Balance essential in garment supply chain
- Apparel buyers miss out on commodity cost savings
- Tanzania adds to Africa’s apparel sourcing mix
- Brandix named PVH ‘Global Supplier of the Year’
- Earthquake damage at Bangladesh garment factories
- Ascena Retail to buy Ann Taylor owner for $2bn
- China and India to exploit trade relationship
- AGOA delays drag on sourcing decisions