Ralph Lauren posts surprise rise in quarterly sales

RALPH Lauren reported a surprise rise in quarterly revenue on Thursday (Aug 10), as demand for its high-end sweaters, shirts and outdoor clothing saw a strong rebound in China, offsetting a slowdown in luxury spending in the US.

Luxury brands have seen a pick-up in China demand as the market reopens from Covid-19 curbs, propping up sales at several high-end labels at a time when US demand has cooled.

While China only accounts for 6 per cent of Ralph Lauren’s revenue, according to research firm Jane Hali & Associates, the company saw sales in the market jump more than 50 per cent in the first quarter, pulling Asia region revenues up 13 per cent to US$378 million.

However, the company forecast second-quarter revenues to be flat to slightly up year over year, compared to analysts’ estimate for a 3.3 per cent rise, sending shares down 3 per cent in premarket trading.

Net revenue rose to US$1.50 billion in the first quarter, from US$1.49 billion a year earlier. Analysts on average had expected a marginal drop to US$1.48 billion, according to Refinitiv data. REUTERS