Ralph Lauren quarterly income soars

Ralph Lauren Corp. ended its fiscal year on an upbeat note with earnings and revenue that beat expectations as its average unit prices continued to rise. 

The luxury apparel and accessories brand’s net income tripled to $90.7 million, or $1.38 per share, for the quarter ended March 30, up from $32.3 million, or $0.48 per share in the year-ago period. Adjusted earnings were $1.71 per share, ahead of the $1.67 per share analysts had expected. 

Ralph Lauren’s revenue increased 2% to $1.568 billion, just ahead of the $1.566 analysts had forecast. Same-store sales rose 6%. Average unit retail prices in the company’s direct-to-consumer division rose 13%.

In North America, revenue increased 2% to $668 million. Comparable store sales increased 3%, with a 6% increase in brick and mortar stores offsetting a 4% decrease in digital commerce following stronger holiday performance.

North America wholesale revenue decreased 2%, slightly ahead of our expectations as the company said it “carefully manages sell-in to align with consumer demand in the channel.” (For the past couple of years, Ralph Lauren has expanding its direct-to-consumer channels and moving away from wholesale.)

“We continue to evaluate our brand presence on a door-by-door basis, resulting in approximately 20 department store exits completed in the region this fiscal year,” the company stated.

For the full year, Ralph Lauren’s revenue increased 3% to $6.6 billion. Net income was $646 million, or $9.71 per diluted share on a reported basis. This compared to net income of $523 million, or $7.58 per diluted share on a reported basis last year. 

In a statement, president and CEO Patrice Louvet said the company is now in year two of its “Next Great Chapter: Accelerate” plan.

"Supported by our increasing brand desirability and multiple engines of growth, this year's performance underscores the strength of our long-term strategy, even as we navigate a highly dynamic global operating environment,” he said.

Ralph Lauren expects first-quarter revenue to rise slightly on a constant currency basis, but to be down slightly on a reported basis. For the full fiscal year, it expects revenue growth of 2% to 3%, below what analysts were looking for. 

"Looking ahead to fiscal 2025, we are staying on offense by continuing to invest in our brand, our portfolio of iconic core products and our consumer-centric ecosystems in top cities globally,” Louvet said. “This focus — combined with our culture of operating discipline and the agility and dedication of our passionate teams — will continue to fuel our sustainable growth and value creation into the future."

The company raised its quarterly dividend by 10% to 82.50 cents a share. 

In a separate release, Justin Picicci was named CFO of Ralph Lauren, effective May 23, 2024