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Ralph Lauren reported an adjusted loss per share of 68 cents in the fourth fiscal quarter, well ahead of analyst estimates. The reason for this was the announcement yesterday Wednesday of a drop in sales and a greater than expected loss of revenue in the fourth quarter of fiscal 2020, while the coronavirus pandemic has forced the American fashion group to temporarily close its points of sale around the world.
Reduction of the nominal value of the share …
Ralph Lauren’s low earnings for the fourth quarter 2020 contributed to the decline in the RL share.
On Wednesday, May 27, the company announced an adjusted loss per share of 68 cents after the luxury clothing and accessories company reported higher-than-expected losses, while analysts expected adjusted earnings per share (EPS) of 1 cent for the quarter.
The adjusted loss of 68 cents per share was also below FactSet’s consensus expectation of a loss of 26 cents per share.
This resulted in a net loss for the company of $249 million or $3.38 per share for the quarter, compared with earnings of $31.6 million (39 cents per share) a year ago.
On Wall Street, Ralph Lauren’s stock gained 2.6% at the start of Wednesday’s trading session and fell 30.6% at the end of the session.
Ralph Lauren therefore expects the results for the financial year 2021, which began in April, to be further heavily affected by the health crisis and to reflect the impact of the epidemic.
However, as restrictions have been eased, the company is reopening stores on a market-by-market basis in accordance with government guidelines. To date, the Company has reopened approximately two-thirds of its stores in Europe and almost half of its stores in North America in the last two weeks of May.
It can also rely on its online operations and its digital customer base, particularly in China, which has been expanding in recent days and may well put Ralph Lauren Corp back on track and create the conditions for its recovery after heavy financial damage.
… Caused by a wider-than-expected quarterly loss
Ralph Lauren’s loss was much larger than what professionals feared for the fourth quarter of his reported fiscal year.
Indeed, for the fourth quarter of the 2020 fiscal year ending March 28, the New York-based high-end apparel house reported a 15.4% drop in revenues to $1.27 billion (1.16 billion euros) from $1.51 billion last year, revenues still below the Wall Street and Consensus Zacks estimate of $1.29 billion.
In North America, revenues declined by 11% to $629 million and in Asia, revenues declined by 22% to $214 million. In Europe, revenues declined by 19% to $353 million.
On a constant currency basis, revenues declined by 14% from the prior year quarter.
Ralph Lauren ended fiscal 2020 with $2.1 billion in cash and investments and $1.2 billion in debt.
These unfavourable results reflect the commercial disruptions related to the Hong Kong protests but especially the negative impact of the coronavirus epidemic.
In addition to being penalized by the riots in Hong Kong, the company had to close almost all its stores in North America, Europe and other parts of the world in mid-March as a result of the epidemic: the major international fashion capitals of Milan, New York and Paris then interrupted their activities in order to stop the spread of the virus, plunging sales in the luxury industry and affecting Ralph Lauren at its heart.
Read also > Ralph Lauren provides update on impact of coronavirus
Featured photo : © Ralph Lauren[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Ralph Lauren reported an adjusted loss per share of 68 cents in the fourth fiscal quarter, well ahead of analyst estimates. The reason for this was the announcement yesterday Wednesday of a drop in sales and a greater than expected loss of revenue in the fourth quarter of fiscal 2020, while the coronavirus pandemic has forced the American fashion group to temporarily close its points of sale around the world.
Reduction of the nominal value of the share …
Ralph Lauren’s low earnings for the fourth quarter 2020 contributed to the decline in the RL share.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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Ralph Lauren reported an adjusted loss per share of 68 cents in the fourth fiscal quarter, well ahead of analyst estimates. The reason for this was the announcement yesterday Wednesday of a drop in sales and a greater than expected loss of revenue in the fourth quarter of fiscal 2020, while the coronavirus pandemic has forced the American fashion group to temporarily close its points of sale around the world.
Reduction of the nominal value of the share …
Ralph Lauren’s low earnings for the fourth quarter 2020 contributed to the decline in the RL share.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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