Ralph Lauren reported a 1 percent increase in revenue to USD 1.5 billion for the first quarter, on the back of solid gains in Asia and Europe.
SEE ALSO: Ralph Lauren distances brand from Indonesian entity
The American luxury brand said quarterly revenues in Asia grew 4 percent to USD 391 million on a reported basis and 9 percent in constant currency, with China sales up high-single digits, slightly ahead of the New York-based firm’s expectations.
Comparable store sales in Asia were up 9 percent, thanks to a 21 percent uptick in the region’s digital commerce channel, partially offset by a 7 percent gain in brick-and-mortar stores.
Revenue growth was also led by Europe, up 6 percent, weighed down by a 4 percent decline in North America sales.
By category, Ralph Lauren said its core business rose low-single digits, outpaced by high-potential categories, made up of women’s apparel, outerwear, and handbags, which increased mid-single-digits.
Coinciding with the revenue uptick, net income in the first quarter grew to USD 169 million, or USD 2.61 per diluted share, compared to USD 132 million, or USD 1.96 per diluted share.
“We delivered a solid start to the year, with first quarter performance exceeding our expectations on the top- and bottom-line led by our direct-to-consumer and international businesses,” said Patrice Louvet, president and chief executive officer.
“The powerful combination of our brand strength and diverse growth drivers – together with our culture of agility and operating discipline – gives us confidence that our long-term strategy will continue to deliver even through these dynamic times.”
Last month, Ralph Lauren Corporation officially distanced itself from any affiliation or connection with PT Manggala Putra Perkasa, an Indonesian entity operating under the name ‘Polo Ralph Lauren Indonesia’, amid local media reports highlighting disputes involving the said entity and other parties in Indonesia.