Ralph Lauren Corp.’s American style dream has hit a new milestone.
The company’s fourth-quarter revenues rose by 17 percent to $2 billion, a 12 percent increase in constant currencies, putting the top line over $8 billion for the first time last year.
And Ralph Lauren did it while continuing to increase its average unit retail prices, which rose in the midteens last year as the brand deemphasized price promotions to move goods.
That continued move up the pricing ladder helped the bottom line.
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Ralph Lauren’s net profits for the quarter ended March 28 increased 17.5 percent to $151.6 million. That translated into adjusted earnings per share of $2.80, which was 26 cents ahead of the $2.54 analysts forecast, according to Yahoo Finance.
Patrice Louvet, president and chief executive officer, told WWD in an interview: “We’re not dependent on the moment, a trend, a channel, a brand, or a consumer group, but really have these multiple drivers kicking in for us, which really talks to the durability of the model.
“While the environment remains uncertain, we remain clearly on offense and we’re confident that we’re going to continue to deliver long-term sustainable growth and value creation for the years to come,” he said.
The business is working around the world and Louvet is looking to press his advantage. By region during the quarter:
* North American sales were up 8 percent to $763 million, with a 16 percent comparable store sales increase and flat wholesale sales.
* European revenues increased 18 percent to $620 million, a 6 percent rise in constant currencies.
* Asian revenues advanced by 31 percent to $564 million, a 28 percent rise in constant currencies.
For this fiscal year, the company is looking for revenues to see a midsingle digit increase, centered around 4 percent to 5 percent, on a 52-week comparable basis.
Ralph Lauren, executive chairman and chief creative officer, said: “For nearly 60 years, our brand has stood for optimism, quality, authenticity, and a life well lived. From the passion and pursuit of greatness at the Olympics — the world’s biggest stage in sports — to joyful traditions like Lunar New Year, we are bringing people together through timeless style that celebrates life’s meaningful moments.”
