Ralph Lauren’s turnaround efforts are leading to sales declines but at the same time are helping its margins inch up, according to its first quarter earnings report. In North America, revenue was down 17%, but expanded gross margin and expense cuts yielded 110 basis points in adjusted operating margin, the company said.
Wholesale sales also took a hit in North America as the company strategically reduced shipments to department stores and off-price stores, accounting for almost 20 points of the 27% decline in U.S. wholesale in the quarter, Ralph Lauren CFO Jane Hamilton Nielsen told analysts Thursday, according to a transcript of its conference call from Seeking Alpha.
