Ralph Lauren Says Coronavirus To Negatively Impact Q4 Sales, Operating Income

(RTTNews) - Ralph Lauren Corp. (RL), which has temporarily closed about two-thirds of its stores in the Chinese mainland over the past week due to the coronavirus outbreak, said Thursday that it expects a broader impact across its businesses in China and parts of Asia due to significantly reduced travel as well as retail traffic.

As a result, the company now expects its outlook for the fourth quarter of fiscal 2020 to be negatively impacted by $55 million to $70 million in sales, and $35 million to $45 million in operating income in Asia, driven by the current trends in China, Japan, and Korea.

The company noted that these estimates could materially change if there is meaningful deterioration from current trends. Supply chain disruptions in China could also impact a small portion of the company's fourth-quarter orders globally.

As the situation continues to unfold, Ralph Lauren plans to provide an update on the operational and financial impact along with its fiscal 2021 and first-quarter guidance on its fourth quarter earnings call.