Ralph Lauren warns of $55 million to $70 million sales hit due to coronavirus
Ralph Lauren Corp. is the latest company to weigh in on the likely impact of the coronavirus outbreak.
In its latest update, Ralph Lauren Corp. said that approximately two thirds of its stores in the Chinese mainland have been temporarily closed during the past week and that it expects broader impact across its businesses in China and parts of Asia due to significantly reduced travel and retail traffic. The company said that its fiscal 2020 sales could be hurt by $55 million to $70 million from the outbreak. Operating income in Asia could take a $35 million to $45 million hit.
Ralph Lauren said that its estimates could change if there is “meaningful deterioration” from current trends. Also, supply chain disruptions in China could impact a small portion of the company’s fourth quarter orders globally.
“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 CEO, Ralph Lauren. “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.”
Earlier this week, Under Armour said that it expects first-quarter sales declines of $50 million to $60 million, mostly due to the coronavirus outbreak.