Ralph Lauren Corp. had its moment in the spotlight at the Olympic opening ceremony in Paris, where the brand outfitted Team USA.
Now the company is having its moment on Wall Street, with first-quarter results that showed stronger profits and a mild increase in sales, with gains in Europe and Asia outweighing declines at home in North America.
Net income for the quarter expanded 27.6 percent to $168.6 million, or $2.61 a diluted share, from $132.1 million, or $1.96, a year earlier.
Adjusted earnings of $2.70 a share came in 23 cents ahead of the $2.47 analysts had penciled in for the company, according to Yahoo Finance.
That was enough to push the stock up $4.3 percent to $172 in premarket trading on Wednesday.
Revenues for the three months ended June 29 rose 1 percent to $1.51 billion from $1.5 billion.
Revenues in North America fell 4 percent to $608 million, as wholesale continued to be a tough spot with a 13 percent decline impacted by the timing of Easter and fewer sales to offpricers.
In Europe, revenues were up 6 percent to $479 million while Asia was ahead 4 percent.
In an interview with WWD, Patrice Louvet, president and chief executive officer, highlighted the strength of Ralph Lauren’s direct-to-consumer business, which represents 66 percent of the company’s sales.
DTC comparable sales were up 5 percent in every region in what Louvet described as “a volatile environment.”
“We really want people to view Ralph Lauren as a company that you can count on that is reliable, whatever the context is, and we deliver on our commitment,” the CEO said. “Our success can’t be attributed to one single factor. It’s a combination of a strong brand, timeless products that are really resonating right now around the world and an elevated go to market approach that’s working.”
For the full year, the company continues to see revenues rising in the low-single digits, on a constant currency basis.
“Our brand has always been about inspiring a better life and celebrating the moments that bring us together,” said Ralph Lauren, executive chairman and chief creative officer. “From our intimate runway show at our New York studio this spring to our elegant Salone del Mobile presentation in Milan and this summer’s Olympics, we are inviting people around the world to step into their dreams through authentic, timeless style.”
