Ralph Lauren Corporation (NYSE:RL), the fashion group, reported little year-on-year growth for both sales and underlying profits in the first quarter of the 2024 financial year, a company statement revealed.
Sales reached US$1.5 billion for the period, representing a 1% increase versus 2023’s figures, while underlying profits rose by US$10 million to reach US$200 million for the quarter.
“What we do is about the connection between the beauty of an authentic life and the elegance of timeless style,” said Ralph Lauren, the group’s chairman, chief creative officer and founder.
"This underlies everything we create at our Company — from our elevated presentation at Wimbledon and in our new Miami Design District store to our beautiful California Dreaming events across Europe and Asia — as we inspire people around the world to step into their dreams," the fashion designer added.
Earnings per share (EPS) was expected to increase to US$2.15, according to Zacks Consensus Estimate, but the fashion retailer was able to beat these predictions reporting a US$2.34 EPS on an adjusted basis.
Sales in its core business rose at a mid-single-digit rate, while ‘high-potential’ categories such as Women’s, outwear and Home all jumped by low-double digits year-on-year.
Performing well in China with sales more than 50% up versus last year, the US-listed group noted that sales in North America had dropped by 10%, driven by inflationary pressures and an increase in “value-orientated consumers”.
Reiterating its full-year guidance, the group said second-quarter revenue growth was expected to be flat and operating margins to be in the range of 9.5% to 10%.
Ralph Lauren is down more than 3.5% in pre-market trading, having closed at around US$128.