Ralph Lauren Corp. is picking up momentum and working to firm up prices as chief executive officer Patrice Louvet’s push to emphasize the power of the brand takes hold.
And investors like it.
Shares of Ralph Lauren shot up 7.4 percent to $121.68 in pre-market trading Tuesday as the company weighed in with third-quarter gains that topped Wall Street’s expectations.
Net profits for the three months ended Dec. 28 rose to $334.1 million, or $4.41 a diluted share, from $120 million, or $1.48, a year earlier. Adjusted earnings of $2.86 a share came in well ahead of the $2.45 analysts projected.
Total revenues increased 1 percent to $1.8 billion as the average unit retail price across the firm’s direct-to-consumer network was up 6 percent, which was on top of a 9 percent rise last year. And there’s further to go.
In an interview with WWD, Louvet said the company was this week rolling out price increases across its North American ecosystem.
“Creating style that endures and inspires our consumers guides everything we do,” said Ralph Lauren, executive chairman and chief creative officer. “I am encouraged by how our global teams continue to deliver on this mission as we elevate our iconic brand all over the world.”
The performance in the quarter stands out.
Ralph Lauren — like all the established players in fashion — has been working in a tough retail scene, where consumers have jobs and money but are choosing to spend on experiences and digital subscriptions while deemphasizing apparel.
To reframe the brand and the company for a new age, Louvet is carrying out a five-year plan that leans in on five strategic priorities. The emphasis is on working to appeal to a new generation while energizing the company’s core products, expanding by region and channel, leading with digital and operating with discipline.