Ralph Lauren report decrease in quarterly sales during pandemic

 

New York - 2020, Ralph Lauren Corp. The American Giant Ralph Lauren reported losses of $1.82 per share after the first quarter in the pandemic crisis, even greater than the pre-predicted $1.73 that analysts expected. The luxury clothing brand is scrambling even considering revamping  its structure to avoid the fate of their retail rivals that have not survived this new crisis. 

The companies latest report showed a significant adjustment loss per share citing, its evaluating "long-term operating structure to align with our evolving stratgeic priorities", with the main focus surround 6 main areas; how to  organise teams, corporate  office, real estate footprint, product sales and overall portfolio brands. 

"This strategic review is poised at setting up strategies for the next several years as not only the business but the world emerges from the current health crisis", Chief Executive Partice Louvet said. "We are making sure that we're set up to win. There is an opportunity to reset in this environment, as we look to the change in customer behaviours and retail landscape ", he said. 

This significant  process overhaul underpins the steps retail brands need to undertake as the coronavirus pandemic exacerbates and already unsteady ever-changing, challenging consumer environment. 

Luxury purchases, have been significantly impacted during the widespread economic  lockdowns, forcing many big retailers into bankruptcy this year alone. With many investors voicing their annoyance with the results, the shares fell as much as 6.8% in pre-market trading in New York. Ralph Lauren proceeding with its plans to open and continue to expand its worldwide network, by opening 90 stores with the vast majority in Asia, Europe and only a few more in the US. 

When the first shutters of the pandemic swept across the world, Ralph Lauren took measures to cut costs, including cuts to executive  pay and employee furloughs along with negotiating rent reductions to help shore up cash. North America revenue was amongst the biggest dropoff of sales, plunging by 77% to $165million in revenue in the first quarter. Europe revenue decreased 67% and Asia fell 34%, however, the bright side to these figures is all three markets saw an uptake in digital sales. As more brands struggle through this pandemic, major corporations are shuffling their structures around to ensure that they too don't perish with the pandemic. 

💖my fashiontine