Shares of Ralph Lauren Corp (RL) dropped in morning trading after the company announced additional actions as part of its Way Forward Plan. Under the new initiatives announced Tuesday, the company will close its Polo store on Fifth Avenue in New York City, reduce its workforce and explore new retail concepts.

FIFTH AVENUE STORE CLOSURE: Ralph Lauren said in a regulatory filing this morning that it will close its Polo store at 711 Fifth Avenue in New York City. Merchandise at the Fifth Avenue Polo location will be integrated into the Ralph Lauren Men's and Women's flagship stores on Madison Avenue and its downtown locations, Ralph Lauren said, noting that it will continue to operate its seven additional store locations and its flagship Polo Bar Restaurant in New York City. CFO Jane Nielsen commented that Ralph Lauren is continuing to review its store footprint in each market "to ensure we have the right distribution and customer experience in place. The decision will optimize our store portfolio in the New York area and allow us to focus on opportunities to pilot new and innovative customer experiences." Nielsen noted that the Polo brand "remains strong," and will further strengthen as the product and marketing evolves.

OTHER ACTIONS: Ralph Lauren also announced that it will restructure its current digital operations and the shift to a more cost-effective, flexible e-commerce platform through a new agreement with Salesforce's (CRM) Commerce Cloud. Additionally, the company said it will explore new retail concepts, including leveraging Ralph's Coffee, and developing new store formats that "connect the brand to loyal and new consumers." The additional restructuring-related activities will result in a workforce reduction as well as the closure of certain store locations and offices. The company did not specify how many jobs will be cut or how many other locations will be closed. It expects $140M in annualized expense savings from the efforts, and will incur total estimated charges of $370M.

WHAT'S NOTABLE: In 2016, Ralph Lauren announced its Way Forward Plan to turnaround the core brand. Management has announced plans to close about 50 high end stores in a move to right-size its real estate portfolio, and will eliminate layers of management. Ralph Lauren also said it will cut about 8% of its global headcount and streamline its supply chain. The savings announced this morning are in addition to the $180M-$220M of annualized expense savings announced at the company's 2016 Investor Day. In February, Ralph Lauren said Stefan Larsson would step down as president and CEO of the company on May 1. Ralph Lauren, executive chairman and Chief Creative Officer, said at the time that he and Larsson "found that we have different views on how to evolve the creative and consumer-facing parts of the business. After many conversations with one another, and our board of directors, we have agreed to part ways." A search for a new CEO is currently being conducted, with CFO Nielsen leading the execution of the Way Forward Plan.

PRICE ACTION: Ralph Lauren is down 3.6% to $78.51 in morning trading. Shares are down over 13% year-to-date.