Ralph Lauren Corp., one of fashion’s most consistent performers, topped fourth-quarter earnings estimates as it continued to focus on its core products and push up its average unit prices.
In the fourth quarter, Ralph Lauren’s net income jumped 180 percent to $90.7 million, or $1.38 a diluted share, from $32.3 million, or 48 cents, a year earlier. Adjusted earnings of $1.71 a share came in 5 cents ahead of the $1.66 analysts had penciled in, according to Yahoo Finance.
Revenues for the three months ended March 30 increased 1.8 percent to $1.57 billion from $1.54 billion. Average unit retail prices in the fourth quarter rose 13 percent in the company’s direct-to-consumer network, which accounts for about two-thirds of its business.
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But in a nod to the difficult consumer landscape, the company forecast revenue growth of 2 percent to 3 percent this year — just below the 4 percent Wall Street had anticipated.
Investors took an initially cautious approach and traded shares of the company down 1.3 percent to $162 in premarket trading on Wall Street.
Patrice Louvet, president and chief executive officer, said in a statement: “We are staying on offense by continuing to invest in our brand, our portfolio of iconic core products and our consumer-centric ecosystems in top cities globally. This focus — combined with our culture of operating discipline and the agility and dedication of our passionate teams — will continue to fuel our sustainable growth and value creation into the future.”
Louvet is headed into the new financial year with a new finance chief by his side.
Justin Picicci was promoted to chief financial officer after a multi-year succession plan. Picicci is picking up the title from Jane Nielsen, who will remain chief operating officer through fiscal 2025.
Even as the company flexes with the times, the brand remains centered on timelessness.
Ralph Lauren, executive chairman and chief creative officer, added: “Our brand has always been about inspiring people to live the life of their dreams. We marry elegance and style in aspirational worlds — from our recent fashion show featuring elevated classics to the vibrant home line we showcased last month in Milan — our teams around the world are delivering our vision with passion and care.”
