Ralph Lauren Q2 earning jump, revenues increase by 6 percent
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Ralph Lauren Corporation reported second quarter earnings per diluted share of 2.31 dollars, up 5 percent on a reported basis and 2.54 dollars, up 21 percent on an adjusted basis.
Revenue in the quarter increased 6 percent to 1.7 billion dollars on a reported basis and also in constant currency.
Commenting on the second quarter trading, Patrice Louvet, Ralph Lauren’s president and CEO said in a statement:. "Our strong business performance across every geography this quarter underscores the resilience of our diversified growth drivers and our elevated consumer base, giving us confidence to take up our financial outlook for the full fiscal year ahead of the all-important holiday season."
Ralph Lauren posts sales growth across regions
The company’s North America revenue increased 3 percent to 739 million dollars and in retail, comparable store sales increased 6 percent, with a 9 percent increase in brick and mortar stores offsetting a 2 percent decrease in digital commerce. The company said that the wholesale revenue decreased 3 percent, in-line with our outlook.
Europe revenue increased 7 percent in the quarter to 566 million dollars on a reported basis and 6 percent in constant currency. In retail, comparable store sales in Europe increased 15 percent, with a 15 percent increase in brick and mortar stores and a 14 percent increase in digital commerce, while wholesale revenue increased 2 percent to prior year on a reported basis and increased slightly on a constant currency basis.
Revenues in Asia increased 9 percent to 380 million dollars on a reported basis and 10 percent in constant currency. Comparable store sales in Asia increased 11 percent, with a 10 percent increase in brick and mortar stores and a 19 percent increase in digital commerce.
Ralph Lauren expects FY25 revenue to grow between 3 to 4 percent
For fiscal 2025, the company now expects constant currency revenues to increase in a range of approximately 3 percent to 4 percent.
The company now expects operating margin to expand approximately 110 to 130 basis points in constant currency, while gross margin is expected to increase approximately 80 to 120 basis points in constant currency.
For the third quarter, the Company expects constant currency revenues to grow approximately 3 percent to 4 percent, operating margin to expand approximately 100 to 140 basis points in constant currency, driven by gross margin expansion.