U.S. luxury brand Ralph Lauren reported a 3 percent lift in revenues for the second quarter to USD 1.6 billion, citing momentum in Asia for the uptick, especially via the region’s online channel.
Ralph Lauren Asia revenue in the second quarter increased 10 percent to $348 million on a reported basis and 13 percent in constant currency, with China up more than 20 percent on last year.
Asian comparable store sales increased 8 percent, with a 7 percent increase across brick-and-mortar stores and a 19 percent increase in digital commerce, and operating income was USD 68 million on both a reported and adjusted basis.
Adjusted Asia operating margin was 19.6 percent, down 120 basis points to last year.
Elsewhere, North America revenue in the second quarter decreased 1 percent to USD 718 million, partially offset by a 7 percent uptick in Europe sales to USD 527 million.
“Our teams delivered solid second quarter performance ahead of our commitments with stronger top-line growth across all regions, supported by our iconic brand, pricing power and continued strategic investments,” said Patrice Louvet, president and chief executive officer.
“While we continue to navigate an uncertain macro environment, we are driving offense across our Next Great Chapter: Accelerate plan’s multiple growth drivers with agility, discipline and a clear focus on what we can control.”
Looking ahead, the New York-based company said it continues to expect fiscal 2024,revenues to increase approximately low-single digits, centering around 1 percent to 2 percent.
Ralph Lauren’s earnings update has bucked the global slowdown trend hitting major European luxury houses during the most recent quarter.
Last month, luxury giants LVMH and Kering reported a slowdown in total sales for the third quarter ending September 30, along with Italy’s Salvatore Ferragamo, largely on a slower-than-expected recovery in Asian.