Fashion label Ralph Lauren has once again lowered its turnover forecast, the second time in a mere 4 months. A strong dollar and lower consumer spending will impact its full fiscal year even more than expected.
Ralph Lauren now expects a 4 % turnover growth for its full fiscal year, down from to the 6-8 % it had originally forecast. In October, it had already lowered that to 5-7 %, but even that seems unattainable apparently.
"Foreign exchange and global consumer spending remain unpredictable, and we are planning our business accordingly", Ralph Lauren COO, Jacki Nemerov, said. Over the past year, the dollar has grown nearly 20 % in value.
In its third quarter, which ended on 27 December 2014, Ralph Lauren's like-for-like retail turnover dropped 2 %, while its net profit dropped 9.3 % to 215 million dollars (188 million euro), despite a nearly 1 % turnover growth to 2.03 billion dollars (1.78 billion euro).