Ralph Lauren: financials
In 2021, the company's global revenue amounted to 4.4 billion U.S. dollars, making it one of the worst fiscal years of the past decade. The sharp decline in Ralph Lauren's revenue was a reflection of the impact of the coronavirus (COVID-19) pandemic particularly on the luxury goods industry. While store sales of Ralph Lauren slumped particularly in Europe and North America, in the Asian market the impact was not as hard, with sales declining only by six percent in 2021. Despite the big loss in the company's global revenue, Ralph Lauren is still among the leading companies dealing in luxury goods worldwide according to a global report on luxury and cosmetic products from Ernst & Young.
Ralph Lauren's retail strategy
The network of Ralph Lauren's retail stores focuses on showcasing the "World of Ralph Lauren". Advertisements that are intended to portray a lifestyle rather than a specific product. Therefore it is of little surprise that the company's advertising and marketing expenses were in excess of 265 million U.S. dollars in 2021.
As of 2021, Ralph Lauren operated 151 retail stores throughout the world. However, Ralph Lauren's main focus is their boutique style model consisting of 'shops-within-shops'. As of 2021, the company had a network of over 9,500 shops-within-shops in North America alone. The company employs about 20,300 people and operates approximately 8,800 distribution centers worldwide. With a pre-established network of retailing and department stores, it is very easy and convenient for the Ralph Lauren Corporation to bring in new lines of products.