Ralph Lauren's Sales Slip in North America

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 [e-mail]

(END) Dow Jones Newswires

May 14, 2019 11:06 ET (15:06 GMT)

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