Saturday 28 November, 2020

Ralph Lauren: 4Q sales hit of up to US$70 million from coronavirus

Ralph Lauren is warning that the viral outbreak that originated in China will cut into fourth-quarter sales by an estimated $55 million to $70 million.

Two-thirds of Ralph Lauren stores in China have been closed over the past week, the luxury apparel maker said Thursday.

Operating income in Asia will decline between $35 million and $45 million from prior estimates, according to the New York company.

Industry analysts surveyed by FactSet have been expecting quarterly revenue of $1.51 billion, and earnings per share of 96 cents.

The viral outbreak has now infected more than 53,000 globally with total deaths in mainland China exceeding 1,300.

Ralph Lauren posted strong results for its third quarter earlier this month.

Since then, significantly reduced travel and retail traffic across Asia has taken a toll, the company said Thursday.

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