Ralph Lauren said the decline concerned all regions due to Covid-19 related impacts, but that foreign currency favorably impacted revenue growth by approximately 100 basis points in the second quarter. Gross profit totalled US$799 million in the period, and gross margin was 67%. Adjusted gross margin was 66.5%, 500 basis points above the prior year on a reported basis and up 480 basis points in constant currency. The company said the gross margin expansion was primarily driven by AUR growth across all regions as well as favourable geographic and channel mix shifts partly due to Covid-19. Operating loss for the second quarter of fiscal 2021 was US$20 million and operating margin was (1.7%) on a reported basis. Adjusted operating income totalled US$151 million and operating margin was 12.6%, 230 basis points below the prior year.

North America revenue in the second quarter decreased 38% to US$543 million. Comparable store sales were down 32%, with a 40% decrease in brick-and-mortar stores, partly offset by a 10% increase in digital commerce. North America wholesale revenue decreased 46%. In Europe, revenue decreased 25% to US$359 million on a reported basis, while in Asia revenue was down 7% to US$237 million. Comparable store sales in Asia decreased 11%, with a 12% decline in brick-andmortar stores, partly offset by a 32% increase in digital commerce.

“Looking across the first half of the fiscal year, we continued our elevation journey while fast-tracking Connected Retail and our company-wide digital transformation”, said Patrice Louvet, President and CEO, Ralph Lauren. “We also began the hard but necessary work of simplifying our organisational and cost structures to position the company for future growth. Looking ahead, we will continue to work proactively to deliver an elevated experience that inspires consumers around the world and creates value for all of our stakeholders.”