FSMNews

The luxury clothing brand Ralph Lauren is looking to be in a pickle as sales continue to drop for the ninth time in a row despite upbeat earnings results. Shares were down after the unfortunate report; the dwindling customers still manages to pull sales down despite continues effort on lowering shipments and tighten inventory.

Consensus Metrix forecasted that the fashion brand would drop at least 6.5% on their shares this quarter, but clothing brand manages to exceed the expectation reporting a 12% decline despite some hefty plans on decreased shipments to department stores and the full-on compression of their inventory to capitalize on more full-price sales.

FSMNews

Ralph Lauren Quarter Report

The global fashion leader posted earning per diluted share of $2.48 and $0.89 on an adjusted basis for the forth-quarter of Fiscal 2017, while the total earning per diluted share for the past Fiscal was at $1.20 on a reported basis and $5.71 on the adjusted basis; compared to the full Fiscal year of 2016 of $4.62 per diluted share, and on $6.36 on an adjusted basis excluding restructuring and other charges.

The New-York based company also announced that they will be having a new CEO; according to Ralph Lauren, current Executive Chairman and Chief Creative Officer “The retail landscape today is more dynamic than ever, but within this environment, our brand continues to be one of the most recognized and beloved all over the world. Our performance for the year reflects our work to strengthen our brand and I am confident that the actions we are taking, combined with our strong heritage, position us well to succeed. I am very excited to partner with Patrice Louvet, who will join as our CEO in July, as we continue our evolution,”

FSMNews

CFO Nielsen on the Previous Quarter

According to Chief Financial Officer Jane Nielsen, “Fiscal 2017 was an important year as we strengthened the foundation of the Company. We created operational efficiencies, increased the productivity of our assortment and improved quality of our sales,”

Nielsen also mentioned that they; “continued to drive quality of sales up by moderating discount levels; lowered our inventory levels by 30% to improve inventory turns; reduced the number of SKUs by 20% for both Spring and Fall 2017, increasing SKU productivity and producing a more focused, higher margin assortment; shortened our lead times and achieved our goal of having 50% of our business on a 9-month lead time, and remain on track to get to 90% by the end of Fiscal 2018; optimized our store fleet by closing another 20 underperforming stores, reaching our goal for the year; initiated the move to a more cost-effective, flexible e-commerce platform; strengthened the global organization, adding a Chief Marketing Officer and Men’s Brand President, and created a single International organization under a seasoned leader to drive a more efficient organization.”

FSMNews

RL Share Dips on Ninth Sale Decline

The continued slump in terms of sales made investors wary of the potential 2017 Fiscal Ralph Lauren can produce; shares dip by 3% just before the market closes. Sales are heavily weighed down by slower-than-usual spending on apparel and accessories; the company also reached the levels of being oversold on Thursday. The clothing brand announced that they expect another dip in its sales for the next quarter, while the new CEO Patrice Louvet will be starting in July with big cuts to tend to.

Follow FSM News for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!