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Jun 27, 2020

Ralph Lauren Q1 2021 Earnings Report

Ralph Lauren's financial performance was negatively impacted by COVID-19, but digital sales grew and the company took actions to strengthen its balance sheet.

Key Takeaways

Ralph Lauren Corporation reported a significant decrease in revenue for the first quarter of Fiscal 2021 due to the adverse impact of COVID-19. Revenue decreased by 66% to $487 million. The company reported a net loss of $128 million, or ($1.75) per diluted share, and an adjusted net loss of $133 million, or ($1.82) per diluted share. Despite these challenges, digital comp sales increased, and the company strengthened its balance sheet with over $2.7 billion in cash and investments.

First quarter revenues were $487 million, reflecting the adverse impact of COVID-19.

Digital comp sales accelerated to 13% growth.

Average unit retail increased 25%, driven by geographic and retail channel mix shifts and ongoing brand elevation initiatives.

The company strengthened its balance sheet with over $2.7 billion in cash and investments.

Total Revenue
$488M
Previous year: $1.43B
-65.9%
EPS
-$1.82
Previous year: $1.77
-202.8%
Gross Profit
$349M
Previous year: $921M
-62.1%
Cash and Equivalents
$2.45B
Previous year: $648M
+278.1%
Total Assets
$7.74B
Previous year: $7.34B
+5.4%

Ralph Lauren

Ralph Lauren

Ralph Lauren Revenue by Segment

Forward Guidance

Due to the ongoing high level of uncertainty and evolving situation surrounding COVID-19, the company continues to suspend all future guidance and expects financial results for both the second quarter and full year Fiscal 2021 to be significantly adversely impacted by the pandemic and prolonged demand recovery.

Revenue & Expenses

Visualization of income flow from segment revenue to net income