Ralph Lauren reports Q1 North America SSS down 8%
North America revenue in the first quarter decreased 17% to $710M. The decline was due to lower sales in both the retail and wholesale channels, driven by distribution and brand exits, a strategic reduction in shipments and promotional activity to increase quality of sales, as well as due to lower consumer demand. On a constant currency basis, comparable store sales in North America were down 8%, including a 4% decline in brick and mortar stores and a 22% decrease in e-commerce that reflected a planned reduction in inventory, reduced SKU count and reduced promotional activity. Europe revenue in the first quarter decreased 14% to $323M on a reported basis and 10% in constant currency. On a constant currency basis, comparable store sales in Europe were down 8%, including an 8% decline in brick and mortar stores and a 5% decline in e-commerce. Asia revenue in the first quarter decreased 1% on a reported basis to $209M and increased 1% in constant currency. Comparable store sales increased 2% in constant currency driven by higher traffic.