The Ralph Lauren Corporation has reported a larger-than-expected loss in its latest quarter due to the effects of the Covid-19 pandemic. With global lockdowns in place, sales of the company’s products, including jackets, coats, and Polo shirts, have been heavily impacted. As a result, Ralph Lauren’s financial performance has suffered, leading to a drop in the company’s stock price.

The fashion industry as a whole has been severely affected by the ongoing crisis, with major fashion capitals like Italy, France, and the United States implementing business shutdowns to contain the spread of the virus. Luxury stores have been forced to close their doors, and consumer spending has dramatically decreased, negatively impacting high-end fashion brands like Ralph Lauren.

Although nearly half of Ralph Lauren’s stores in North America have reopened, it is expected that the demand for luxury clothing will not rebound quickly. With the global economy facing a deep recession, the company anticipates that its fiscal 2021 results will also be significantly affected by the ongoing health crisis.

In the fourth quarter ended March 28, Ralph Lauren’s net revenue decreased by 15.4% to $1.27 billion. However, this result slightly exceeded analysts’ average estimate of $1.22 billion. The company reported a net loss of $249 million, or $3.38 per share, compared to a profit of $31.6 million, or 39 cents per share, in the same period last year. When excluding certain factors, the loss per share amounted to 68 cents, surpassing analysts’ expectations of a 40 cents loss.

The impact of the Covid-19 pandemic on the fashion industry is ongoing and continues to present significant challenges for fashion retailers. Ralph Lauren’s financial results reflect the difficult reality faced by high-end fashion brands during this unprecedented time. Despite the partial reopening of stores, the road to recovery remains uncertain as the global economy grapples with the implications of the ongoing crisis.

Useful links:
Forbes: Ralph Lauren Cancels Dividend, Stock Prices Down 30%
Business of Fashion: Why Ralph Lauren’s Turnaround Plans Have Stalled