Ralph Lauren's Sales Slip in North America
May 14 2019 - 11:21AM
Dow Jones News
By Kimberly Chin
Ralph Lauren Corp. (RL) said sales in North America were
sluggish in the fourth quarter, primarily due to the weak resonance
of some of its spring fashion concepts, fewer discounts and the
timing of the Easter holiday.
For the quarter ended March 30, sales in North America declined
7% from a year earlier. Same-store sales in the region also fell
4%, as lower sales at brick-and-mortar locations offset growth in
digital sales.
Shares of the retailer fell 8% in Tuesday trading. Its stock had
gained 5.1% for the year.
Ralph Lauren slowly has tried to reverse the trend of selling
the company's iconic Polo shirt for a lower price in outlets than
the wholesale price it offers its retail partners, Credit Suisse
analysts said in a note. However, Polo shirts are now selling in
outlets above the wholesale price, "evidence that RL has reversed
one of the biggest channel conflicts we've ever seen," the note
said.
Still, wholesale revenue in the region fell by 10%.
Excluding the effects from Easter, which occurred this year
after the quarter closed and later than in recent years, comparable
store sales in the region fell 1%.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
May 14, 2019 11:06 ET (15:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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