Ralph Lauren Corp. topped earnings expectations in its fiscal third-quarter as the company continued to nudge up its prices and bring on new shoppers.
Net income increased 27.8 percent to $276.6 million from $216.5 million a year earlier.
Adjusted earnings per share of $4.17 came in well ahead of the $3.57 analysts projected, according to FactSet. That helped send Ralph Lauren’s stock up 7.4 percent to $158 in premarket trading.
Revenues for the three months ended Dec. 30 rose 5.6 percent to $1.9 billion from $1.8 billion.
Patrice Louvet, president and chief executive officer, said in a statement: “We delivered a strong holiday, with continued progress on our Next Great Chapter: Accelerate plan and third quarter results that exceeded our expectations led by continued momentum in our direct-to-consumer channels. These results underscore the diversity of our strategic growth drivers around the world in a still-volatile operating environment as well as our culture of operating discipline and agility.”
The company has been elevating its positioning for years and, in the third quarter, pushed its average unit retail prices up 9 percent in its direct to consumer network, on top of a 10 percent increase a year earlier.
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Those prices haven’t kept shoppers away as the company added 1.7 million new customers in its DTC business during the quarter, the quickest growth since the pandemic.
“Our vision inspires people to live the life of their dreams,” said Ralph Lauren, executive chairman and chief creative officer. “And this holiday season, our teams around the world brought this to life in iconic products and campaigns marked with timeless elegance and a spirit of joy.”
