Ralph Lauren Corp. kicked off its fiscal year with what Patrice Louvet, president and chief executive officer, described as a “solid start.”
First-quarter net income rose to $117.1 million, or $1.47 a share, from $109 million, or $1.31, a year earlier. Adjusted earnings of $1.77 a share came in well ahead of the $1.66 analysts projected. Revenues for the three months ended June 29 increased 3 percent to $1.43 billion from $1.39 billion.
Louvet told WWD the company has seen “continued momentum in Asia and Europe” where “product is really resonating.” Across the regions, the company is working on expanding its presence.
In North America, the company’s average unit retail prices came in below plan. “It was really driven by the fact that we over invested in some fashion product and had to flush them out and that put some pressure on AUR,” Louvet said.
The U.S. online business was also hurt by currency fluctuations that caused international buyers to click “buy” less often.
To help bolster the home market, Ralph Lauren is ramping up marketing spending to drive consumers both to the stores and to its web site.
Overall, investors liked what they saw and drove shares of the firm up 4.2 percent to $116.05 in pre-market trading.