RALPH LAUREN REVENUES PLUNGE 66 PERCENT
Ralph Lauren’s revenues slid 66 percent to $487 million in the first quarter as digital gains failed to offset retail and wholesale declines.
While the brand has now reopened nearly all of its stores across North America, Europe, and Asia, significant disruptions throughout the quarter, which ended June 27th, resulted in flagging sales throughout all regions.
North America saw the biggest drop in revenue in the first quarter, down 77 percent to $165 million. In retail, comparable store sales in North America were down 64 percent, driven by a 77 percent decrease in brick-and-mortar stores and a 3 percent increase in digital commerce. Wholesale revenue in North America decreased by 93 percent, likely due to canceled orders.
Europe was right behind with a decrease in revenue of 67 percent to $121 million. In retail, comparable store sales in Europe were down 62 percent, with a 75 percent decrease in brick-and-mortar stores partly offset by a 44 percent increase in digital commerce. Europe’s wholesale revenue decreased by 71 percent.
The Asian market faired the best, with a revenue decrease of 34 percent in the first quarter to $172 million. Comparable store sales in Asia decreased 33 percent, with a 35 percent decline in our brick-and-mortar stores partly offset by a 68 percent increase in digital commerce.
“We are living through an incredible period of change — whether related to the devastating spread of COVID-19 around the world or the call to systemically address racial injustice,” said Ralph Lauren, executive chairman and chief creative officer. “Through it all, we are focused on continuing to build a business that stands the test of time — staying true to who we are while taking action that enables us to deliver our brand vision for decades to come.”
“The past few months have marked a period of extraordinary challenge, but also agility and resilience,” added Patrice Louvet, president and chief executive officer. “Our financial performance this quarter reflects an unprecedented three months of COVID-19-related impact around the world. We are taking the opportunity to leverage this period of disruption to accelerate our core strategic focus areas, drive new areas of growth, and realign our resources accordingly.”