Ralph Lauren reports strong holiday quarter, lifts outlook
Ralph Lauren Corp. maintained momentum during its third quarter as it once again reported better-than-expected earnings and sales.
The luxury brand's income rose 7.5% to $297.4 million, or $4.66 a share, for the quarter ended Dec. 28. On an adjusted basis, net income was $308 million, or $4.82 per share, compared to net income of $277 million, or $4.19 per share, in the year-ago period. Analysts had expected earnings of $4.53 a share.
Revenues increased 11% to $2.144 billion, topping estimates of $2.014 billion. The company said it drove continued momentum in its core business, which was up low-teens, during the quarter, along with its “high-potential” categories (women's apparel, outerwear and handbags), which increased 20% to last year and outpaced total company growth.
Ralph Lauren’s average unit retail rose 12% across its direct-to-consumer network amid strong full-price selling trends, with lower than planned holiday promotions.
By geography, revenues were led by low- to mid-teens growth in Europe and Asia, with China notably up more than 20%.
In North America, revenue increased 7%. Comparable store sales increased 8%, with a 10% increase in brick-and-mortar store sales and a 3% increase in digital commerce. North America wholesale revenue increased 6% to the prior year.
"Our teams around the world executed very well across geographies, channels, and categories this holiday to deliver on our long-term, Next Great Chapter: Accelerate strategy," said Patrice Louvet, president and CEO. "We are encouraged by this quarter's strong performance, and we continue to be sharply focused on what's ahead for Ralph Lauren: leveraging the incredible power of our brand and diverse drivers of growth to stay on offense into the next year and beyond."
The company raised its full-year fiscal 2025 guidance. It now expects revenue to increase in a range of approximately 6% to 7%, up from its prior guidance of a 3% to 4% increase.
Ralph Lauren ended the quarter with 570 directly operated stores.
