Hermes: New Three Stores + $350 Million

In the current depressed market of luxury goods, Herm s is still in the upper reaches.

According to the 2014 sales figures released by the Hermes group in mid February this year, its annual revenue has exceeded 4 billion euro mark for the first time, reaching 4 billion 118 million 600 thousand euros (28 billion 130 million yuan), an increase of 9.7% over the previous year, far exceeding its competitors.

Annual revenue growth of 3.9%.

"At present, we do not want to change the price of products.

With a considerable number of customers, what we need to do this year is to eliminate the impact of exchange rate fluctuations.

Axel Dumas, executive director of Hermes group, said that the possibility of price cuts is not entirely absent.

"We will consider this issue around 2016."

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Dumas is also confident of future development, though they have just lowered their 2015 earnings forecast from 10% to 8%.

Hermes plans to open three stores in 2015, and plans to invest $350 million to refurbish existing stores and expand product lines.

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Ralph Lauren, the high-end clothing brand in the United States, recently began laying off workers, all of which are aimed at the pformation of the group.

According to reports, the layoffs accounted for 5%, which means 750 Ralph Lauren employees lost their jobs.

In the fourth quarter of March 28th, the total number of employees was 25 thousand, of which 15 thousand were full time employees and 10 thousand were part-time employees.

60% at headquarters in the United States, the rest are overseas.

Due to the ongoing restructuring and restructuring of the company, the total number of job cuts is not yet known, and most of the jobs with duplication or redundancy will be reduced.

Ralph Lauren group has 6 brands, namely, Ralph Lauren (except Home Series), Polo, Denim & Supply, Lauren, Ralph Lauren Lauren and Home.

In February of this year, Ralph Lauren announced the new global brand management strategy, which will arrange 6 brand presidents, each responsible for a brand.

The 6 brand vice presidents report directly to Christopher H. Peterson, the global brand president of Ralph Lauren group.

Ralph Lauren believes that the new architecture can maintain product style consistency of the same brand, as well as the group's patency of global information dissemination.

At the same time, the group can save $100 million (about 620 million yuan) in operation cost annually.

For a decision on layoffs, a spokesman for Ralph Lauren said that the decision was difficult but necessary: "in order to achieve maximum growth and achieve greater operational and financial efficiency, the group decided to implement a new brand management structure.

Therefore, we need to reduce the number of full-time employees.

Due to the cost of layoffs and restructuring, the rise in the US dollar and the slowdown in passenger consumption, the net profit of Ralph Lauren group fell by 19% to 124 million yuan (about 769 million yuan) in the fourth quarter ending March 28th, and net revenue rose 1% to 18.9 billion yuan (about 11 billion 720 million yuan) from 1 billion 870 million US dollars (11 billion 600 million yuan).

After the fourth quarter financial report was released, Peterson said in a conference call with Wall Street analysts. "In the past, we managed separate regional and channel businesses and had different products in different stores.

However, the new structure will increase brand consistency and promote brand value, greatly reduce inventory (SKU), optimize inventory turnover, gain higher gross profit, and save sales, management and administrative expenses.

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Rick Snyder, a senior retail analyst at investment group Maxim, believes that the restructuring of Ralph Lauren should be a correct decision to make the company's earnings. "The less SKU, the better the operating capital."