Ralph Lauren warns of up to $70 mln hit to Asia sales from coronavirus
Feb 13 (Reuters) - Ralph Lauren Corp said on Thursday it expects a $55 million to $70 million hit to its fourth-quarter sales in Asia from the coronavirus outbreak in China.
Shares of the company fell 3% to $120.01 in premarket.
About two-thirds of Ralph Lauren's 110 stores in China have been temporarily closed over the past week, the luxury goods maker said.
Supply chain disruptions in China could also impact a small portion of fourth-quarter orders globally, Ralph Lauren said.
The company, which derives about 4% of its total revenue from China, said the outbreak could also result in a $35 million to $45 million hit to its operating income in Asia.
The epidemic, which has claimed more than 1,300 lives and infected hundreds of thousands, has forced retailers, including Capri Holdings, Nike, Gucci-owner Kering , to shut stores or limit working hours in China.
Luxury goods makers like Canada Goose and Burberry have also predicted a hit to their sales and profit because of the outbreak. (Reporting by Arunima Kumar in Bengaluru; Editing by Ramakrishnan M)
