RTTNews | Oct 29, 2020 08:32AM EDT

08:31 Thursday, October 29, 2020 (RTTNews.com) - While reporting its financial results for the second quarter on Thursday, Ralph Lauren Corp. (RL) said it expect its financial results for both the third quarter and full year fiscal 2021 to continue to be adversely impacted by the pandemic and prolonged demand recovery.

In addition, Ralph Lauren said that as part of its ongoing brand portfolio review, the company is transitioning the Chaps brand to a fully licensed business model, consistent with its long-term brand elevation strategy.

The company has entered into a multi-year licensing partnership, taking effect on August 1, 2021 after a transition period, with an affiliate of 5 Star Apparel LLC, a division of the OVED Group, to manufacture, market and distribute Chaps menswear and womenswear.

The products will be sold at existing channels of distribution with opportunities for expansion into additional channels and markets globally.

The company expects the agreement to create incremental value for it by enabling it to focus on elevating its core brands in the marketplace, reducing its direct exposure to the North America department store channel and setting up Chaps to deliver on its potential with an experienced partner that is focused on nurturing the brand.

Read the original article on RTTNews ( https://www.rttnews.com/3140816/ralph-lauren-to-transition-chaps-brand-to-fully-licensed-business-model.aspx)

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