On October 29, Ralph Lauren Corp. reported a fiscal second-quarter loss of $39.1 million, which was a large drop from the profit it made over the same period a year earlier. The New York-based company added that it also lost 53 cents per share. Earnings, adjusted for non-recurring costs, were $1.44 per share. It posted revenue of $1.19 billion over the period, which fell short of Wall Street forecasts: In a survey by Zacks, for instance, three analysts had expected a profit of $1.22 billion. The group’s revenue was led by Mainland China, which returned to its Pre-COVID-19 growth rates.
According to the earnings report, sales performance improved sequentially across all regions in the quarter and was led by digital channels, despite further disruptions from COVID-19 and cautious consumer behavior. Sales from Mainland China continued to improve, with second-quarter sales increasing more than 30 percent year-on-year after recovering to pre-COVID trends.
The upscale clothing company also announced that they were restructuring to help position the company for future growth, beginning with an organizational realignment of Chaps brand to transition it to a fully-licensed business. “Looking across the first half of the fiscal year, we continued our elevation journey while fast-tracking Connected Retail and our company-wide digital transformation,” said the group’s president and chief executive officer, Patrice Louvet.
In the second quarter, Ralph Lauren engaged with digital activations and key brand moments across social media, sports, and music that included the Ralph Lauren x Bitmoji Collection, the first-ever customizable wardrobe for Snapchat, a partnership with the popular Netflix show Elite, and an exclusive virtual concert experience featuring Chance the Rapper at its Chicago flagship. “The strength of our timeless brand and the values that have always been our touchstone continue to anchor us through this period of change and uncertainty,” said the company’s executive chairman and chief creative officer, Ralph Lauren.