Formerly in charge of Ralph Lauren’s Asia-Pacific region, Smith replaces Geoffroy Van Raemdonck, who held the post since 2014 and has now been appointed as the Group’s President in charge of the commercial development and expansion strategy. The Senior Management reshuffle is part of Ralph Lauren’s ‘Way Forward’ business plan to act against declining sales.

In early August, the fashion Group reported first-quarter fiscal 2018 adjusted earnings of US$1.11, an increase from US$1.06 reported in the prior-year quarter, according to stock market website Nasdaq. Net revenue was down 13.2% in the period, year-on-year to US$1,347.1 million, missing the analysts’ estimate of US$1,349 million. The decline is said to have been “in line with the company’s guidance and resulted from its initiatives to improve quality of sales, soft demand and distribution and brand exits”. On a currency-neutral basis, revenues are reported to have fallen nearly 12% in the quarter. 

Gross profit for the first quarter of Fiscal 2018 was US$851 million on a reported basis and US$852 million on an adjusted basis, excluding approximately US$1 million of inventory charges related to Ralph Lauren’s restructuring activities. Gross margin was 63.2% on both a reported and adjusted basis.

Sources: Nasdaq/Fashion Network