Ralph Lauren Corporation, a global leader in premium lifestyle products, has released financial results for the second quarter (ended October 1) of the current fiscal.
The fashion retailer has posted a 9 per cent decline in its second-quarter revenue to US $ 1.7 billion on a reported basis.
As per the company’s press statement, the drop in revenue is the result of lower consumer demand, increased quality of sales, reduced promotional activities, etc.
Ralph Lauren’s gross profit for the quarter on both reported and adjusted basis stood at US $ 996 million. Its gross margin remained 59.8 per cent on a reported basis and 59.9 per cent on an adjusted basis.
Operating income for the reporting quarter reached US $ 193 million, including restructuring-related and other charges worth US $ 30 million.
After a not so encouraging second quarter, Ralph Lauren expects that its operating margin for the third quarter will come down by 50-70 basis points (bps). This will include the impact of foreign currency.
The American retailer also expects a 6-8 per cent decline in its revenue for the third quarter.
Ralph Lauren, Executive Chairman and Chief Creative Officer of the company has, however, expressed satisfaction over the progress made during the second quarter. He feels that the company is strengthening the foundation of its business and will regain pace soon.
