Ralph Lauren Corp. is working its way back and reorienting its business to gain as it comes out of the pandemic.
While losses continued for the fiscal second quarter ended Sept. 26, the company saw significant improvement from the first three months of the fiscal year and has been focusing on elevating its namesake business while becoming more connected with consumers. Now, the firm is continuing its streamlining effort and transitioning Chaps to a licensed model.
Patrice Louvet, president and chief executive officer, said: “Looking across the first half of the fiscal year, we continued our elevation journey while fast-tracking connected retail and our companywide digital transformation. We also began the hard but necessary work of simplifying our organizational and cost structures to position the company for future growth. Looking ahead, we will continue to work proactively to deliver an elevated experience that inspires consumers around the world and creates value for all of our stakeholders.”
Losses for the second quarter tallied $39.1 million, or 53 cents a diluted share, and compared with earnings of $182.1 million, or $2.34 a share, a year earlier.
Revenues fell 30 percent to $1.2 billion.
The company has made plenty of progress from the first quarter, when losses totaled $127.7 million and sales fell by 65.9 percent.
The Chaps brand will shift to a fully licensed business model through a multi-year partnership with an affiliate of 5 Star Apparel, a division of the OVED Group, that takes effect Aug. 1 after a transition period.
That will allow the company to focus all the more on its namesake business.
Ralph Lauren, executive chairman and chief creative officer, said: “The strength of our timeless brand and the values that have always been our touchstone continue to anchor us through this period of change and uncertainty. While this is a very trying time for the world, I am eternally optimistic about our ability to take the great learnings and creativity that have emerged from this time to become even stronger.”
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