Ralph Lauren Corp. is charging on through troubled times.
The company, which has been determinedly elevating its brand and boosting its prices for four years, has held on to those gains through COVID-19 as well as to the present day in a world beset with macroeconomic uncertainty and sky-high inflation.
Fourth-quarter net earnings tallied $24.4 million, or 34 cents a share, for the firm and compared with losses of $74.1 million, or $1.01, a year earlier.
Adjusted earnings per share came in at 49 cents, well ahead of the 38 cents analysts projected.
Revenues for the three months ended April 2 increased 18 percent to $1.5 billion from $1.3 billion. The top line in North America rose 19 percent to $674 million as Europe increased 26 percent to $467 million and Asia rose 20 percent to $346 million, despite some “adverse impacts” tied to the COVID-19 lockdowns there.
The company has been working to become more digital, bring in younger consumers and play in more categories, elevating its profile along the way.
In its own direct-to-consumer network, Ralph Lauren’s average unit retail prices grew 13 percent in the fourth quarter, making for an increase of 15 percent for the full year — which came on top of a 26 percent rise the year before.
For the full fiscal year, the company’s sales jumped 41 percent to $6.2 billion. And while that rate won’t continue, Ralph Lauren is consolidating its gains and looking to keep growing off that bigger base with revenues projected to increase in the high-single digits on a constant currency basis.
Patrice Louvet, president and chief executive officer, said: “We have laid the groundwork for healthy sustainable growth and value creation in fiscal 2023. As we continue to navigate a highly dynamic global macroeconomic environment, our growth will be supported by the strength of our brand and multiple engines — from recruiting new high-value consumers to developing high-potential product categories and geographic and channel expansion.”
Executive chairman and chief creative officer Ralph Lauren added: “From our latest fashion show to the launch of our powerful Morehouse and Spelman colleges collection, we continue to inspire people all over the world to dream. Whether it’s our clothes or how we think about our impact on the planet, we imprint all we do with a spirit of optimism and timelessness that give people a sense of possibility.”
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