North American luxury fashion firms Ralph Lauren, Canada Goose, and Capri Holdings reported a mixed bag of results for the first quarter 2024, with all three companies, however, noting strong growth in their respective Asian markets.
New York-based Ralph Lauren said first-quarter fiscal 2024 revenue increased slightly to USD 1.5 billion. By region, the company’s constant currency sales performance was led by Asia, up 13 percent on a reported basis and 18 percent in constant currency with China up more than 50 percent to last year.
Likewise, comparable store sales in Asia increased 13 percent, with a 14 percent increase in brick-and-mortar stores and an 11 percent increase in digital commerce.
The luxury brand also managed to open 24 new stores across Asia during the three months.
“Our solid first quarter performance highlights the unique power and relevance of our iconic brand with consumers around the world along with our diversified engines of growth, and we are reaffirming our full year outlook,” said Patrice Louvet, president and chief executive officer.
“As we continue to execute on our Next Great Chapter: Accelerate plan, our teams are staying true to our creative vision while remaining agile and focused on what we can control in the context of a choppy environment.”
Meanwhile, luxury outerwear brand Canada Goose said total revenue increased 21 percent to USD 84.8 million, compared to the prior year. In Asia Pacific, Canada Goose revenues surged 52 percent to CAD 24.5 million (USD 18.23 million).
During the quarter, Canada Goose renovated and relocated its Beijing Sanlitun flagship Store, opening its largest square-footage store in the world. This flagship store features Canadian art, a VIP lounge, and the brands Snow Room.
“We had a strong start to the year, with first quarter results reflecting solid demand for our brand, especially as more customers shop directly with us,” said Dani Reiss, chairman and CEO of Canada Goose.
“We remain focused on our growth pillars to drive results over the long-term. In the first quarter, we welcomed more new customers across every market into our expanding global retail network, and we continued to see product categories like apparel and accessories resonate with our customers.”
Looking ahead, Canada Goose said it is planning 16 permanent retail stores, which it expects to be fully operational in the second half of the year, concentrated in Mainland China, the U.S. and Japan.
For the same quarter, Capri Holdings announced total revenue of USD 1.23 billion, a decreased of 9.6 percent compared to last year. By brand and region, Versace Asia revenues grew to USD 61 million, up from USD 53 million in the prior-year period, while Jimmy Choo Asia revenues totalled USD 53 million, up from USD 52 million last year.
The company’s star performer Michael Kors clocked USD 111 million revenues in Asia, compared to USD 97 million for the three months.
The earnings update also coincided with the news that American luxury rival Tapestry Inc. will acquire Capri Holdings in a USD 8.5 billion deal.
“As announced earlier today, the planned acquisition of Capri Holdings by Tapestry marks a major milestone for our company. It is a testament to all that our teams have achieved in building Versace, Jimmy Choo and Michael Kors into the iconic and powerful luxury fashion houses they are today,” John D. Idol, the company’s chairman and chief executive officer.
“We are confident this combination will deliver immediate value to our shareholders. It will also provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company. By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”