The sale of upscale casual wear brand Club Monaco, established in 1985 and bought by Ralph Lauren in 1999, is expected to close by the end of June, Ralph Lauren said on Thursday. “For the past twenty-two years, Club Monaco has been an important and valued part of the Ralph Lauren family, and we are grateful for the many contributions the brand and its team have made to our company,” said Ralph Lauren president and CEO Patrice Louvet in a release.
“As we increase our focus on our core namesake brands, we want to ensure the Club Monaco brand is also well-positioned for long-term success,” added the executive. “We are confident that Regent is the right home for Club Monaco to realize its full potential, as they will be able to leverage their strategic and operational expertise to continue Club Monaco’s growth.”
To trim losses and elevate its core Ralph Lauren brand, the company has been concentrating on its online presence and articulating efforts to cut costs.
The sale of Club Monaco is part of the Strategic Realignment Plan for fiscal 2021 announced by the group last year. This strategy aims to accelerate the company's progress with its wider Next Great Chapter Plan by making sure that its core brands are in a strong position to pursue sustainable growth. As part of the same realignment plan, Ralph Lauren recently moved its Chaps lifestyle brand to a licensed model.
Like many of its peers, Ralph Lauren has struggled with the effects of the Covid-19 pandemic over the last year, reporting revenues of $1.4 billion in the third quarter ended December 26, 2020, down 18% year over year. The company’s net income for the quarter was $119.8 million.
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