Strong dollar lowers Ralph Lauren's profit | RetailDetail

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


Ahold Delhaize launches digital lab in the United States

22/05/2018

Ahold Delhaize’s American division will found a new company focused on digital innovation: Peapod Digital Labs will become a lab for new digital, eCommerce and personalization strategies. 

Carrefour forced to shut down hundreds of Dia stores

22/05/2018

Carrefour has not found a buyer for hundreds of its former Dia stores in France yet. That may force nearly 230 stores to shut down.

Carrefour and Tencent launch high-tech store in Shanghai

22/05/2018

The recently launched ‘Le Marché’ store formula, a first collaboration between Carrefour and Tencent, allows customers to pay with face recognition at unmanned checkouts.

Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.

Nestlé on a diet: cuts back sugar, fat and salt levels

17/05/2018

Nestlé wants to lower its sugar, salt and fat levels to play into the global demand for healthier food.