Ralph Lauren Plunges As CEO Says Not Completely Done With Covid By Investing.com

By Dhirendra Tripathi

Investing.com – Ralph Lauren (NYSE:RL) shares fell more than 8% Thursday after Chief Executive Officer Patrice Louvet said, “We’re not completely done with Covid.”

The restoration of a dividend, suspended due to the pandemic, didn’t help the stock price.

Louvet’s comments during a call for analysts come at a time when the global luxury industry is seen making a quick rebound as the pandemic retreats in the U.S. and Europe.

The luxury industry was among the worst affected in the pandemic as world economies went into multiple lockdowns at various intervals and companies like Ralph Lauren were forced to temporarily shut their stores.

The maker of polo shirts is not untouched by supply chain pressures and inflationary stress like higher freight costs, problems affecting so many other manufacturers and retailers.

The high-fashion retailer said it expects 2022 revenue to increase approximately 20% to 25% in constant currency. For the ongoing quarter, it is expected to increase approximately 140% to 150% in constant currency over last year.

Analysts polled by Thomson Reuters (TSX:TRI) expect net sales to surge 84%, to $1.13 billion for the quarter and 31.1%, to $5.66 billion for the year.

Credit Suisse (NYSE:CS) analyst Michael Binetti called the forecast “Ultra conservative,” according to Reuters.

The company’s fourth quarter revenue increased 1%, to $1.29 billion, driven by 35% growth in Asia revenue. North America revenue in the fourth quarter decreased 10%, to $569 million.

On a reported basis, net loss in the fourth quarter was $74 million.