Luxury fashion retailer Ralph Lauren plans to axe 1,000 jobs and close 50 outlets as part of its strategy to cut costs.

Company spokesman Ryan Lally told Reuters that the jobs being cut represent about 8% of its full-time positions.

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The retailer expects the restructuring plan to lead to annualised savings between $180m and $220m, reported Businessinsider.com.

"The company’s profit margins were affected as department stores offer heavy discounts on excess stocks."

Ralph Lauren also forecast drop in revenues of full-year and first-quarter.

Similar to several fashion retailers, Ralph Lauren also has been struggling as a result of tepid consumer spending.

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The company’s profit margins were affected as department stores offer heavy discounts on excess stock.

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The retailer’s Polo and Lauren brands are facing strong competition as H&M and Zara brands take shorter time to release products. Therefore, it now plans to cut down the production time from 15 months to nine, reported Reuters.

Last year, the company appointed Stefan Larsson as chief executive so he can repeat his success of revitalising sales at Gap.