Strong dollar lowers Ralph Lauren's profit

Strong dollar lowers Ralph Lauren's profit

American fashion company Ralph Lauren has published a lower profit in the fourth quarter of its 2015 fiscal year than it did in the year before. Exchange rate fluctuations are almost entirely to blame, as its turnover has remained level.

Small turnover growth, but lower profit

Ralph Lauren managed a 1.9 billion dollar (1.7 billion euro) turnover in the last quarter of the fiscal year, pretty much level compared to the year before. Despite those numbers, its 153 million dollar (135 million euro) net profit in 2014 dropped to 124 million dollars (110 million euro) this year. The company attributed the drop to the strong dollar, because if the exchange rate fluctuations are ignored, it would have posted a slight profit growth.

 

For its full fiscal year, Ralph Lauren managed a 702 million dollar (620 million euro) net profit, a sizeable drop compared to the 776 million dollar (680 million euro) net profit from last year. Turnover did grow 2 % however, up to 7.6 billion dollars (6.7 billion euro).

 

Sales in its own stores remained pretty level in the fourth quarter, at 841 million dollars (740 million euro) after exchange rate fluctuations. On a like-for-like basis, turnover did drop 4 %, but for its full fiscal year, retail turnover grew 4 % to 4 billion dollars (3.5 billion euro). On a like-for-like basis, retail turnover dropped 1 %.

 

Ralph Lauren hopes to get a 5 % turnover increase for its current fiscal year and it has also announced it will buy back 500 million dollars' worth of shares.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top