Happy days at Ralph Lauren, whose classic, timeless design resonates particularly with consumers. … (+)
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Judging by Ralph Lauren’s impressively solid numbers, it appears that classic American design and timeless tradition have triumphed in an ever-changing and increasingly unpredictable world.
The company yesterday reported continued momentum in the second quarter, detailing growth across all regions and higher average retail prices, defying global luxury concerns.
In fact, Ralph Lauren started his eponymous brand by selling ties at Bloomingdale’s, a New York department store not far from his current Madison Avenue offices, and it has achieved its best performance in years. are.
The retailer is gearing up to expand, particularly in China, boosted by strong performance in Europe and Asia as well as bullish expectations for domestic holiday sales, where other Unlike many luxury brands, it has continued to see strong sales growth this year. All year round.
Ralph Lauren now expects fiscal 2025 sales to increase 3% to 4% at constant currency, up from its previous guidance of 2% to 3%.
Net income totaled $147.9 million for the quarter ending Sept. 28, on revenue of $1.726 billion, up slightly from $146.9 million in the year-ago period, but above analysts’ expectations of $1.681 billion. This is an increase from the previous report of $1.633 billion. year. Sales rose 3% in North America and 7% in Europe, with strong direct-to-consumer sales offsetting a widely expected decline in wholesale.
This came after the company took control of its distribution network by reducing its reliance on wholesale trading in the United States and expanding its retail footprint, particularly in Asia. It also doubled its marketing budget to 7% of total revenue, which Ralph Lauren president and CEO Patrice Loubet said would allow the company to “tell a broader range of stories across a variety of platforms.” ” has become possible.
Ralph Lauren Global Sales
At the same time, the company has been on an “evolutionary journey” over the past few years across its products, storytelling and consumer experience in stores and online, investing in quality and design and enabling new product launches. at a higher value.
Global same-store sales increased 10%, driven by positive numbers in all regions. In North America, same-store sales increased 6%, with 9% growth in physical stores more than offsetting a 2% decline in digital commerce.
Polo Ralph Lauren clothing on display at the Ralph Lauren Flagship Men’s Store in New York. … (+)
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However, the star was Asia. Sales increased 9% to $380 million, with Asian same-store sales up 11%, store count up 10% and digital commerce up 19%, with sales particularly strong in China.Ralph Lauren It is said that this has exceeded his minimum standards. -The percentage of teenagers has increased.
The brand still has room to grow, as China currently only generates around 8% of global sales, compared to around 20% or more for many other premium global brands. is still increasing, and the company plans to continue expanding its business in China.
Ralph Lauren stock price
This is also good news for shareholders. After the stock price soared immediately after the earnings announcement, the stock price fell slightly, but the stock price is close to $2.22, which is more than half the year-to-date increase and an astonishing 90% compared to 12 months ago. It becomes.
“Our team is successfully executing on our long-term strategy and injecting energy and excitement behind our storied brand during a volatile global operating environment,” said Mr. Roubaix. “Our strong performance in all regions this quarter highlights the resilience of our diverse growth drivers and growing consumer base, and gives us confidence in our full-year financial outlook ahead of the all-important holiday season. will give you.”
Ralph Lauren had cash and short-term investments of $1.5 billion and total debt of $1.1 billion at the end of the second quarter of 2024; It was a billion dollars.
