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Ralph Lauren misses revenue estimates as pandemic hammers demand

Published 2020-08-04, 08:14 a/m
© Reuters. The outbreak of the coronavirus disease (COVID-19) in Beverly Hills
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(Reuters) - Ralph Lauren Corp (N:RL) reported a bigger-than-expected 66% fall in quarterly revenue on Tuesday, as it struggled with the coronavirus-led closures of its outlets and department stores across the world.

Shares of the New York-based fashion house fell 5% in premarket trading.

The company's quarterly revenue slumped 77% in North America, with analysts saying demand for high-end handbags, apparel and accessories is not expected to rebound quickly as the global economy enters a deep recession.

The company reported a net loss of $127.7 million, or $1.75 per share, in the first quarter ended June 27, compared with a profit of $117.1 million, or $1.47 per share, a year earlier.

Excluding certain items, Ralph Lauren reported a loss of $1.82 per share, while analysts were expecting a loss of $1.72 per share.

© Reuters. The outbreak of the coronavirus disease (COVID-19) in Beverly Hills

Net revenue fell to $487.5 million, missing analysts' average estimate of $615 million, according to IBES data from Refinitiv.

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