Fashion company Ralph Lauren Corp has predicted that it could take a hit of $ 70 million in its fourth quarter sales due to the coronavirus outbreak in China due to supply chain disruptions in a ‘small portion’ of the company’s global orders.
At least two-thirds of the company’s stores in mainland China have been shut down over the past week and the company expects a broader impact across its business in China and other countries in Asia due to reduced travel and retail traffic.
The company says its fourth quarter sales are expected to be negatively affected by -70 million in sales and between -45 million in operating income in Asia, particularly China, Japan, and Korea.
Ralph Lauren CEO Patrice Louvet says, “While the health crisis creates near-term uncertainties, the fundamentals of our business are strong, and we continue to see significant long-term opportunities for growth in China and across Asia.”
The company has recently successfully piloted a new fast track model in which it completed a sweatshirt from design to delivery in just 16 days.
