Ralph Lauren has announced that in its third quarter ended 26 December 2020, revenues decreased by 18% to $1.4bn (\u00a31.02bn) attributed to the impact of Covid-19 and government restrictions on trade.\r\n\r\nEurope revenue in the third quarter decreased 28% to $316m (\u00a3230m) on a reported basis and decreased 32% in constant currency.\r\n\r\nIn retail, comparable store sales in Europe were down 38%, with a 51% decrease in brick and mortar stores, which was \u201cpartly offset\u201d by a 68% increase in digital commerce. Europe wholesale revenue decreased 17% on a reported basis and fell by 22% in constant currency.\r\n\r\nGross profit for the third quarter dropped to $930m (\u00a3678m), down from $1.08bn (\u00a3788m) the previous year, with gross margin recorded at 64.9%. Operating income for the recorded period declined by 19.5% to $170m (\u00a3124m) from the prior year.\r\n\r\nRalph Lauren, executive chairman and chief creative officer, said: \u201cFor more than 50 years we have stayed true to a set of values that define us \u2013 among them timelessness, quality, perseverance and optimism. And in this period of great challenge and change, it is these values that are enabling us to authentically and deeply connect with our consumers around the world."\r\n\r\nPatrice Louvet, president and CEO, Ralph Lauren, added that despite the disruptions and uncertainty throughout the third quarter, the teams \u201ccontinued to elevate\u201d the brands and \u201ceffectively engage\u201d with consumers around the world.\r\n\r\nShe noted that the group delivered \u201cbetter than expected\u201d gross and operating margins through the holiday period, whilst continuing to \u201cmeaningfully improve\u201d digital profitability.\r\n\r\nLouvet said: "We remain focused on emerging from this period in a position of strength as we invest in key areas like our digital transformation, while taking a disciplined approach with expenses and ensuring we have the right resources, footprint and brand portfolio to support future growth and value creation."