Ralph Lauren, Reset and Ready to Go With $217.7M Profit
The polo pony gained ground in the fiscal third quarter.
Ralph Lauren Corp.’s net income bounced back 82 percent to $217.7 million, or $2.93 a diluted share, from $119.8 million, or $1.61, a year ago, when the pandemic was hitting the consumer world hard. Adjusted earnings of $2.94 came in well ahead of the $2.17 analysts projected.
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Revenues for three months ended Dec. 25 increased 26.7 percent to $1.8 billion from $1.4 billion.
Lauren boosted its annual revenues outlook to constant currency growth of 39 percent to 41 percent, up from the 34 percent to 36 percent growth projected in November.
Investors applauded the bullishness, pushing shares of the company up 9 percent to $123.85 in premarket trading on Thursday.
Patrice Louvet, president and chief executive officer, said: “Our better-than-expected results across all three regions are a testament to the outstanding work our teams have done to fundamentally reposition our business, elevate our brand and pivot to offense — including in North America, where our turnaround is well underway. With our significant reset work behind us, we are encouraged that our long-term growth is supported by multiple engines — from geographic and channel expansion to recruiting new high-value consumers and developing high-potential product categories.”
The brand has been raising prices and its branded lifestyle positioning for years and has fast forwarded its transformation during the pandemic, tightening operations, doubling down on digital and selectively opening new stores.
Lodovico Colli di Felizzano/WWD
Now, even as the pandemic lingers, it is moving on into the future of retail more than getting ready for it.
“What we do has always been about living — enjoying every moment from what you wear, to the way you live, to the way you love,” said Ralph Lauren, executive chairman and chief creative officer. “And as we enter a new year, filled with hope of more connection and healing as humans and for our planet, I am inspired by how our teams and people around the world are connecting to what we are about — timelessness and an authentic life well-lived.”
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