American luxury brand Ralph Lauren announced on Tuesday a 25 percent uptick in Asia revenues for the fiscal 2022 year, on the back of double-digit sales growth in the region during the fourth quarter.
The New York-based company said global revenues for the year increased 41 percent to USD 6.2 billion on a reported basis and increased 42 percent in constant currency. In Asia, annual revenue increased 25 percent to USD 1.3 billion on a reported basis, up 27 percent in constant currency.
Despite “adverse impacts related to Covid-19 business disruptions across key markets” in Asia, Ralph Lauren said sales in the region during the fourth quarter increased 20 percent to USD 346 million on a reported basis and 26 percent in constant currency.
Likewise, fourth quarter comparable store sales in Asia increased 12 percent, with a 10 percent increase in brick-and-mortar stores and a 46 percent increase in digital commerce.
Quarterly Asian operating income was USD 39 million on both a reported basis and an adjusted basis, while annual operating income was USD 229 million and operating margin was 17.8 percent on a reported basis, including restructuring-related and other net charges, the company added.
Globally, net income for the year was USD 600 million or USD 8.07 per diluted share on a reported basis, swinging back to profit after reporting a net loss of USD 121 million, or (USD 1.65) per diluted share on a reported basis a year earlier.
“From our latest fashion show to the launch of our powerful Morehouse and Spelman colleges collection, we continue to inspire people all over the world to dream,” said Ralph Lauren, executive chairman and chief creative officer.
“Whether it’s our clothes or how we think about our impact on the planet, we imprint all we do with a spirit of optimism and timelessness that give people a sense of possibility.”
For fiscal 2023, the company expects constant currency revenues to increase approximately high single digits to last year on a 52-week comparable basis, with a current outlook at around 8 percent.
“We have laid the groundwork for healthy sustainable growth and value creation in fiscal 2023,” said Patrice Louvet, president and chief executive officer.
“As we continue to navigate a highly dynamic global macroeconomic environment, our growth will be supported by the strength of our brand and multiple engines — from recruiting new high-value consumers to developing high-potential product categories and geographic and channel expansion,” Louvet added.