Ralph Lauren Shares Fall After Swing to 2nd-Quarter Loss

Ralph Lauren shares are lower after the fashion house reported a net loss. Adjusted earnings topped analyst estimates.
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Ralph Lauren  (RL) - Get Report shares were lower after the apparel company reported a second-quarter net loss and adjusted earnings stronger than Wall Street expected. 

The New York company swung to a net loss of $39.1 million, or 53 cents a share, from net income of $182.1 million, or $2.34 a share, in the year-earlier period. 

Adjusted earnings of $1.44 a share were down from $2.55 a year earlier but exceeded analyst expectations of 85 cents in a survey by FactSet.

Revenue of $1.19 billion was in line with the analyst consensus of $1.2 billion. Revenue declined in all regions due to covid-19-related impacts. 

At last check Ralph Lauren shares were 6.3% lower at $69.62.

The company reported a 12% decline in inventories at the end of the quarter.

North America revenue fell 38% to $543 million. Comparable-store sales fell 32%. Brick-and-mortar store sales fell 40%, offset partly by a 10% increase in digital commerce. 

Revenue in Europe fell 25% to $359 million. Comparable sales were down 29%. Digital sales advanced 26%. 

Asia revenue fell 7% from a year earlier to $237 million. But in China "performance continued to improve," with second-quarter sales in constant currency increasing more than 30% from a year earlier, "recovering to pre-covid trends," Ralph Lauren said.