The Ralph Lauren Corp has announced that its quarterly revenue has plunged by nearly $1bn as it struggles with coronavirus-led store closures and a slowdown in demand.
The big drop in revenue and a larger-than-expected loss pushed shares of the New York-based fashion house down nearly seven per cent in trading before the bell.
The company’s revenue slumped 77 per cent in North America, with analysts saying demand for high-end handbags, apparel and accessories is not expected to rebound quickly as the global economy enters a recession.
Ralph Lauren is more exposed to the health crisis than other apparel companies as its jackets, coats and dresses are designed for social or formal occasions, said Neil Saunders, Managing Director of research firm GlobalData Retail.
“While some customers have been prepared to pay premium dollars for luxury apparel, many middle-income shoppers have de-prioritised their spending on clothing in favour of spending on the home – an area where Ralph Lauren does play, but not nearly as strongly as it should,” Saunders said.
