Focus on core brands, job cuts, minimize excess inventory and shuttering of underperforming stores collectively helped Ralph Lauren Corporation, a global leader in premium lifestyle products, report an unexpected growth in the first quarter of this fiscal.
The brand has reported a surprising 83 per cent increase in its quarterly profit as it sold more products at full-price. It also reaped benefit from lower taxes.
The fashion retailer’s net revenue noted a 3 per cent increase to US $1.4 billion on a reported basis while the same on a constant currency basis increased by 1 per cent.
The New York-based retailer’s net income jumped to US $ 109 million, or US $ 1.31 per share, in the reporting quarter ended June 30, as compared to US $ 59.5 million, in the corresponding quarter a year earlier.
Revenue increased to US $ 1.39 billion from US $ 1.35 billion, the first increase in at least 13 quarters.
Ralph Lauren’s gross profit for the reporting quarter stood at US $ 896 million while gross margin stood 64.4 per cent.
Operating income for the retailer during the reporting quarter totaled US $ 130 million on a reported basis while operating margin stood 9.4 per cent.
Adjusted operating income for the retailer in the reporting quarter stood $154 million and adjusted operating margin was 11.1 per cent in the reporting quarter.
Region-wise, Ralph’s operating income from North America, Europe and Asia stood at US $ 160 million, US $ 74 million, US $ 43 million on both reported and adjusted basis, respectively.
For Fiscal 2019 and second quarter, the Company now expects net revenue to be down slightly in constant currency and flat to down slightly in constant currency respectively.
