In late afternoon trading, shares of Ralph Lauren were up 9.35 percent despite the fact that the fashion conglomerate has reported that its revenue decreased by 13 percent to $1.3 billion in the first quarter of fiscal 2018. These results were driven by distribution and brand exits, a strategic reduction in shipments and promotional activity to increase quality of sales, as well as due to lower consumer demand.
North America revenue in the first quarter decreased 17 percent to $710 million. The decline was due to lower sales in both the retail and wholesale channels, driven by distribution and brand exits, a strategic reduction in shipments and promotional activity to increase quality of sales, as well as due to lower consumer demand.
Europe saw its revenue in the first quarter decreased 14 percent to $323 million on a reported basis and 10 percent in constant currency. The decline was primarily driven by shifts in timing of shipments in wholesale, brand exits, and reduced markdowns to improve quality of sales. While Asia’s revenue decreased 1 percent on a reported basis to $209 million and increased 1 percent in constant currency. Comparable store sales increased 2 percent in constant currency driven by higher traffic.
“While we are addressing challenges in our business, we have significant opportunity ahead and we’re moving forward with urgency,” said Patrice Louvet, president and chief executive officer. “Ralph and I are focused on actively evolving the brand expression and consumer experience so we can ultimately renew growth and get back to leading. We are continuing to build a strong foundation for future growth, as evidenced by our progress this quarter on the key elements of the Way Forward plan.”
“I am thrilled to welcome Patrice Louvet as my partner to continue the exciting evolution of our Company,” added Ralph Lauren, executive chairman and chief creative officer. “Patrice has the enthusiasm to discover what has made our brand so iconic and the capability to evolve our business. We are both committed to preserving the essence of our brand while actively evolving it to renew long-term growth. Our experiences and expertise will be a powerful and winning combination.”