Ralph Lauren tops Q2 earnings, sales estimates
Ralph Lauren Corp. on Wednesday posted another solid quarter despite economic uncertainty, higher prices and continuing wholesale weakness at home.
In August, the luxury retailer increased the average unit retail (AUR) across its direct-to-consumer network by 15%, following an 8% increase last year.
Net income fell to $146.9 million for the quarter ended Sept. 30, from $150.5 million in the year-ago quarter. Adjusted earnings per share were $2.10, well ahead of the $1.93 analysts were expecting.
Revenues rose 3.4% to $1.63 billion, also more than analysts had forecast, from $1.58 billion, as gains in Europe and Asia offset ongoing wholesale weakness in North America.
In North American, revenue inched down 1% to $718 million. Comparable store sales rose 4% growth, with a 4% increase in digital commerce and a 4% increase in brick-and-mortar stores. Wholesale revenue fell 7%.
Revenues in Europe rose 7% to $527 million. In Asia, sales rose 10% to $348 million.
“Our teams delivered solid second quarter performance ahead of our commitments with stronger top-line growth across all regions, supported by our iconic brand, pricing power and continued strategic investments," said Patrice Louvet, president and CEO. "While we continue to navigate an uncertain macro environment, we are driving offense across our Next Great Chapter: Accelerate plan's multiple growth drivers with agility, discipline and a clear focus on what we can control."
In September, the company celebrated the opening of the first Ralph Lauren store in Canada and the launch of a dedicated Canadian e-commerce site. The store, in Toronto’s Yorkdale Shopping Centre, is the first in a planned expansion in Canada, and builds on the brand’s existing wholesale and outlet presence in the region. The company said it plans to open a number of Ralph Lauren stores across the country in the coming years.
Toronto represents one of Ralph Lauren’s top 30 cities targeted for a comprehensive omni-channel expansion globally.