Ralph Lauren Corp (NYSE:RL) reported it had a Q4 net loss of $204 million. Adjusted earnings per share came in at 89 cents, beating a 78-cent consensus. RL stock is up just over 3% this morning in pre-market trading.
Same-store sales fell 11% for the quarter, according to a company announcement. The results included a more than $300 million charge related to restructuring and severance pay. “The retail landscape today is more dynamic than ever” said Ralph Lauren, executive chairman and chief creative officer, in the statement.
In the fourth quarter, RL reported revenue decreased 16% to $1.6 billion; excluding the impact of foreign currency and on a 13-week to 13-week basis, revenue was down 12% to last year.Last year’s Q4 included an extra week which contributed approximately $72 million of sales.
The iconic fashion company said it improved its quality of sales by moderating discount levels;, while also reducing inventory levels by 30% to improve inventory turns.
RL on Wednesday named Procter & Gamble Company (NYSE:PG) executive Patrice Louvet as CEO, more than three months after his predecessor left the firm, following differences with founder Ralph Lauren over the direction of the company.
Last month, the company said as part of its restructuring plan, it will close its flagship Polo store in New York City’s Fifth Avenue, which was a hotspot for luxury apparel for decades. The move is part of the company’s Way Forward Plan that’s been around since last June. At least 1,000 jobs have been eliminated and 50 stores have been closed.
RL stock is down almost 20% this year through yesterday’s close.