// Ralph Lauren revenue drops 66%
// The Covid-19 crisis saw the retailer close stores around the world
Ralph Lauren has seen its quarterly revenue plummet by nearly $1 billion (£750 million), as the coronavirus pandemic led to store closures and a slowdown in demand for luxury and premium goods.
According to GlobalData, Ralph Lauren is more exposed to the pandemic than other fashion retailers as its jackets, coats and dresses are designed for social or formal occasions.
Ralph Lauren’s net revenue fell 66 per cent to $487.5 million (£366.5 million), missing analysts’ average estimate of $615 million (£462.4 million).
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Ralph Lauren posted a net loss of $127.7 million (£96 million) in the first quarter ended June 27, compared with a profit of $117.1 million (£88 million) a year earlier.
Sales across the luxury sector have dropped due to the pandemic as just recently, luxury goods giants LVMH saw revenues drop by 38 per cent while Gucci owner Kering posted a 44 per cent drop.
Due to current travel restrictions which is affecting its duty free stores in airports, LVMH is not raking in revenues similar to 2019 levels.
Kering’s revenue was better than analyst expectations, with those at UBS citing estimates for a 46 per cent fall.
Kering said in a statement that it did not have enough visibility to predict revenue or profit for the rest of the year, while chief financial officer Jean-Marc Duplaix told reporters it would continue to suffer for some time yet due to the lack of global tourism.