Patrice Louvet, President and CEO of the U.S. apparel brand, said the company’s financial performance in the first quarter of its fiscal year 2021 “reflects an unprecedented three months of Covid-19-related impact around the world”.
Ralph Lauren’s first quarter revenues for fiscal 2021 amounted to RalUS$487 million, down 66% year-on-year. Digital comparable sales increased 13% in the quarter, while average unit retail increased 25%, driven by geographic and retail channel mix shifts and ongoing brand elevation and quality of sale initiatives, according to the company. Currently, nearly all of Ralph Lauren’s stores have reopened across North America, Europe, and Asia, with some continuing to operate at limited hours and consumer capacity, in accordance with local health guidelines.
Key cost reduction actions taken in the first quarter by the company included reductions in executive compensation and temporary employee furloughs; negotiated rent abatements and lower variable rent expense due to Covid-19-related closures; and reduced corporate and selling expenses. Ralph Lauren said its Board of Directors also agreed to forgo its quarterly cash compensation for the first quarter of Fiscal 2021.
Ralph Lauren’s net revenue down 66% – International Leather Maker. (n.d.). Retrieved August 07, 2020, from https://internationalleathermaker.com/news/fullstory.php/aid/8771/Ralph_Lauren_92s_net_revenue_down_66_25.html