Ralph Lauren Joins Peers In Closing Stores On Coronavirus Alert
Zacks Investment Research | Mar 17, 2020 09:03PM ET
Ralph Lauren Corporation (NYSE:RL) is the latest among many retailers to temporarily shut down outlets in response to the government’s public health guidance to contain the coronavirus outbreak. The company closed all of its stores across North America between Mar 18 and Apr 1 to play its part in safeguarding its employees and society.
It revealed that all employees will get full pay for the two weeks. However, the company’s online sites and mobile apps remain up for customers.
It is taking other measures to protect employees, which include canceling travels, allowing work from home, deep cleansing all work stations and implementing staggered schedules in distribution centers. Further, the company stated that it will provide an update on the financial impacts of the coronavirus outbreak as well as its outlook for the first quarter and fiscal 2021 on its fourth-quarter fiscal 2020 earnings call.
Ralph Lauren also highlighted that it already closed several stores in Asia and Europe. In mid-February, the company temporarily closed nearly two-thirds of its stores in mainland China in response to the coronavirus outbreak. For fourth-quarter fiscal 2020, it estimated that the situation in China, Japan and Korea will hurt its Asia operation’s net sales by $55-$70 million and operating income by $35-$45 million.
Shares of the Zacks Rank #3 (Hold) company showed resilience despite the news and gained 2.7% on Mar 17. Notably, shares of Ralph Lauren have slumped 37.3% year to date compared with the industry ’s 46.6% decline.
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