admin Ralph Lauren has reaffirmed its full-year outlook after reporting a small increase in revenue in the first quarter of the year despite its home market weighing on sales.
The New York-headquartered fashion company made net revenue of 1.5 billion dollars in the first three months of the fiscal year, up slightly from 1.49 billion dollars a year earlier.
Its domestic market of the US saw a sharp 10 percent decrease in revenue to 632 million dollars during the period, with approximately half of that drop linked to wholesale timing shifts, and the other to continued inflationary pressures.
There was better news in Europe, where revenue increased 8 percent to 450 million dollars, and Asia, where revenue was up 13 percent to 378 million dollars – revenue in China jumped more than 50 percent following the end of lockdown restrictions.
Profits widen
Net income in the first quarter increased to 132 million dollars from 123 million dollars a year earlier.
“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 president and CEO Patrice Louvet in a statement.
Looking ahead to FY24, the company expects revenue to increase in the low-single digits from the prior year on a constant currency basis.
It expects its operating margin to expand by approximately 30 to 50 basis points in constant currency, driven by gross margin expansion.
Louvet continued: “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.”
