Ralph Lauren’s Revenue, Profit Decline, but Cost Savings Boost Shares
- 9 years ago
Ralph Lauren Corp. reported on Thursday declines in quarterly revenue and profit, hurt by declining tourist visits to the U.S., but savings from a new structure for its brands helped send its shares sharply higher.
Ralph Lauren has faced headwinds this year from a strong U.S. dollar, which has dampened tourism to the U.S. and has the effect of reducing sales earned overseas once those revenues in weaker foreign currencies are translated into U.S. dollars.
The company has moved to head off those challenges by raising prices in Europe, Japan, Canada and Australia.
In addition, the company has gone back to suppliers and pushed for lower sourcing costs.
Stefan Larsson, Ralph Lauren's new chief executive who started his job this week, said he plans to focus on growing the business.
"Where we stand now is just the beginning," said Mr. Larsson, a veteran of Old Navy and H&M.
Ralph Lauren has faced headwinds this year from a strong U.S. dollar, which has dampened tourism to the U.S. and has the effect of reducing sales earned overseas once those revenues in weaker foreign currencies are translated into U.S. dollars.
The company has moved to head off those challenges by raising prices in Europe, Japan, Canada and Australia.
In addition, the company has gone back to suppliers and pushed for lower sourcing costs.
Stefan Larsson, Ralph Lauren's new chief executive who started his job this week, said he plans to focus on growing the business.
"Where we stand now is just the beginning," said Mr. Larsson, a veteran of Old Navy and H&M.