U.S luxury fashion brand Ralph Lauren on November 10 reported better-than-expected revenues for the second quarter, coinciding with double-digit revenue growth in its Asia region.
The New York-based company said revenues for the second quarter increased 5 percent to USD 1.6 billion on a reported basis or up 13 percent in constant currency.
Total net income was USD 151 million, or USD 2.18 per diluted share on a reported basis, falling from USD 193 million, or USD 2.57 per diluted share on a reported basis, in the prior-year quarter.
By region, Asia revenue in the second quarter increased 17 percent to USD 316 million on a reported basis and 33 percent in constant currency. Comparable store sales in Asia increased 25 percent, with a 25 percent increase in the company’s brick-and-mortar stores and a 22 percent increase in digital commerce.
Asia operating income in the quarter was USD 66 million on both a reported basis and an adjusted basis. Adjusted Asia operating margin was 20.8 percent, up 470 basis points to last year, with foreign currency negatively impacting adjusted operating margin rate by 160 basis points.
Elsewhere, North America sales gained 3 percent to USD 727 million, making the region the brand’s biggest market during the quarter, while Europe failed to clock growth, staying at USD 494 million.
“At our investor day in September, we outlined our next phase of growth for our company, our ‘Next Great Chapter: Accelerate’ plan, focused on ongoing brand elevation, category expansion and scaling our key city ecosystems around the world,” said Patrice Louvet, president and chief executive officer.
“Our multiple engines of growth helped drive solid second quarter results with outperformance on both the top- and bottom-line as we continue to navigate a highly dynamic global operating environment with agility and a relentless focus on building our brand momentum.”
Looking ahead, the company expects fiscal 2023 constant currency revenues to increase approximately high-single digits to last year, or about 8 percent.