Ralph Lauren is getting slammed by a double whammy stemming from the pandemic: store closures and a slowdown in global demand for luxury goods.
Even quarterly online sales were weak. Unlike other retailers posting triple-digit sales increases over the Internet, Ralph Lauren’s North American online sales rose a mere 3%. Overall revenue in the region plunged 77%.
Analysts say the pandemic hits Ralph Lauren harder than other clothing companies. Known for its preppy Polo shirts and high-end fashions, it sells jackets, coats and dresses that cater to social and formal occasions. Analysts say its business likely won’t bounce back quickly as the global economy enters a recession.
Ralph Lauren’s quarterly revenue dropped by nearly $1 billion, plummeting by two-thirds as the company swung to a loss from a profit a year ago. Its top and bottom lines were worse than what Wall Street had expected.
Shares fell 8% in early trading Tuesday. They’ve now lost 45% of their value this year.