• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

US fashion firm Ralph Lauren's revenue surges 6% to $1.9 bn in Q3 FY24

09 Feb '24
3 min read
Pic: ltyuan - stock.adobe.com
Pic: ltyuan - stock.adobe.com

Insights

  • Ralph Lauren Corporation reported a 6 per cent YoY revenue increase to $1.9 billion in Q3 FY24, with earnings per diluted share rising by 31 per cent to $4.19.
  • Growth was seen across all regions, with notable performances in Europe and Asia.
  • The company's gross margin improved to 66.5 per cent, and net income rose to $277 million in Q3 FY24.
American luxury fashion firm Ralph Lauren Corporation has reported a 6 per cent year-on-year (YoY) increase in net revenue for the third quarter of fiscal 2024 (Q3 FY24), reaching $1.9 billion on a reported basis. When adjusted for constant currency, revenue growth was 5 per cent, with foreign currency movements favourably impacting revenue growth by approximately 90 basis points in the quarter.

Earnings per diluted share showed strength, rising by 31 per cent to $4.19 on a reported basis from the previous year. Adjusted earnings per diluted share also saw a significant uptick, increasing by 24 per cent to $4.17, compared to $3.20 on a reported basis and $3.35 on an adjusted basis in the third quarter of fiscal 2023, the company said in a media release.

Breaking down the revenue by region, North America showed resilience with revenue standing at $933 million, roughly on par with the previous year. The retail segment outperformed expectations with a 5 per cent increase in comparable store sales, driven by a 6 per cent rise in brick-and-mortar stores and a 4 per cent growth in digital commerce. However, North America's wholesale revenue faced a 15 per cent decline.

Europe presented a brighter picture with an 11 per cent increase in revenue to $522 million on a reported basis, and a 6 per cent growth in constant currency. Retail comparable store sales in Europe surged by 11 per cent, fuelled by strong performance both in brick-and-mortar stores and digital commerce. Wholesale revenue in Europe also saw a modest increase of 5 per cent on a reported basis.

Asia stood out with a 16 per cent revenue increase to $446 million on a reported basis and an impressive 17 per cent growth in constant currency. The region experienced a 14 per cent rise in comparable store sales, led by a notable 25 per cent increase in digital commerce.

Ralph Lauren’s gross profit for the quarter was $1.3 billion, with the gross margin reaching 66.5 per cent. Adjusted gross margin was slightly lower at 66.4 per cent but still represented a 120-basis points improvement over the prior year.

Operating expenses were reported at $968 million, marking a 7 per cent increase from the previous year. Despite this increase, the company managed to improve its operating margin to 16.4 per cent, both on a reported and adjusted basis, 40 basis points higher than the prior year.

Net income for Q3 FY24 was $277 million, or $4.19 per diluted share on a reported basis. Adjusted net income was slightly lower at $275 million, or $4.17 per diluted share, showcasing significant growth from the $216 million or $3.20 per diluted share reported in the third quarter of fiscal 2023.

"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," said Patrice Louvet, president and chief executive officer. "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."

Fibre2Fashion News Desk (DP)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search