Ralph Lauren Corp. bounced back in the fiscal second quarter.
The company’s profits tallied $193.3 million, or $2.57 a diluted share, up from losses of $39.1 million, or 53 cents, a year ago when the pandemic kept shoppers close to home.
Adjusted earnings of $2.62 came in well ahead of the $1.99 analysts projected, helping push shares of the company up 1.7 percent to $131.90 in premarket trading.
Ralph Lauren’s revenues for the quarter ended Sept. 25 jumped 26 percent to $1.5 billion from $1.2 billion. Global digital ecosystem revenues grew 45 percent, with 35 percent growth at the company’s owned digital channels.
Again, the topline growth was supported by the brand’s efforts to elevate its positioning and to increase prices, which have risen for 18 straight quarters at Ralph Lauren. Average unit retail prices rose 14 percent.
“We delivered another quarter of strong progress on our fiscal 2022 plan, with second-quarter results exceeding our expectations across all key financial, operating and consumer health metrics,” said Patrice Louvet, president and chief executive officer. “Ralph Lauren remains on offense — our market share is growing and we are increasing our investments to deliver on further opportunities for growth. Even as we continue to navigate a volatile global environment, we are confident in our ability to sustain our momentum.”
Included in that volatility are a host of supply chain issues that are pressuring all importers and inflationary pressures that, aside from Ralph Lauren’s brand elevation efforts, are making life harder for producers.
But the overall tone from the company is optimistic.
Ralph Lauren, executive chairman and chief creative officer, said: “We continue to grow and evolve in ways I never imagined, all while holding true to the spirit of timelessness that defines who we are. As we enter the holiday season with a greater sense of hope in the world, I am proud of how our teams are coming together to inspire optimism and love in everything we create — from our iconic products to our expanding digital, hospitality and store experiences all over the world.”
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