Ralph Lauren gives update on impact of Coronavirus

YarnsandFibers News Bureau 2020-02-14 07:02:11 – USA

In response to continuing developments related to the coronavirus outbreak in China, Ralph Lauren Corporation is following the guidance of local authorities and global health organizations as it prioritizes the health and safety of its employees, consumers and partners. As part of this, approximately two thirds of the Company’s stores in the Chinese mainland have been temporarily closed over the past week. The Company also expects broader impact across its businesses in China and parts of Asia due to significantly reduced travel and retail traffic.

The Company’s fourth quarter Fiscal 2020 guidance is now estimated to be negatively impacted by $55 million to $70 million in sales and $35 million to $45 million in operating income in Asia, driven by current trends in China, Japan, and Korea. These estimates could materially change if there is meaningful deterioration from current trends. Supply chain disruptions in China could also impact a small portion of the Company’s fourth quarter orders globally.

“Our hearts are with the many impacted by this virus. Our number one priority is keeping our teams, partners and consumers safe,” said Ralph Lauren, Executive Chairman and Chief Creative Officer.

“Our dedicated teams are operating with agility in a highly dynamic situation, and we will continue to assess the implications for our business across retail, corporate and our supply base,” said Patrice Louvet, President and Chief Executive Officer. “While the health crisis creates near-term uncertainties, the fundamentals of our business are strong, and we continue to see significant long-term opportunities for growth in China and across Asia.”

As the situation continues to unfold, the Company plans to provide an update on the operational and financial impact along with its Fiscal 2021 and first quarter guidance on its fourth quarter Fiscal 2020 earnings call.

Source: Textile World

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