Ralph Lauren and Deckers: the two sides of the same coin. The one that represents the changes imposed by CRV on people’s habits. In other words, in the July-September quarter, the US brand‘s revenues fell by 30% compared to 2019. Instead, Deckers‘ revenues grew by 15%. To tip the scales are the purchases destined for a new lifestyle.
Ralph Lauren is losing ground
Ralph Lauren (right, in the photo) reported a drop of about 30% in revenues closing the quarter at 1.19 billion dollars below the expectations of analysts, who expected 1.21 billion (source: IBES/Refinitiv cited by Reuters). Shares of Ralph Lauren fell by 7%, bringing annual losses to over 40%. According to the American brand, the third quarter and full year results will continue to be affected by the drop in consumption caused by the health crisis. “We don’t know when we will return to pre-Covid levels,” said CFO Jane Nielsen.
Deckers grows up
Those who have not purchased a Ralph Lauren product may have preferred to buy one by Deckers. In the three months, the Californian company recorded revenues for 623.5 million dollars, +15% compared to the same period in 2019. And, in doing so, it exceeded the estimates of market observers by 553.62 million dollars (source: Footwear News). Earnings also beat the forecast: 3.58 versus 2.63 dollars per share. UGG brand (left, in the photo), which continues to generate the bulk of Deckers’ revenues, increased sales by 2.5%, Teva by 20.5%, while Sanuk lost 11.4%. But the bang was made by Hoka One One, which recorded an 83.2% increase in revenues. Thanks, says Deckers, to the amateur runners and elite athletes who have increased physical activity outdoors.