The American brand Ralph Lauren, which raised its forecasts for 2021 last November, confirms its good shape.
Ralph Lauren Corp raised its annual revenue forecast Thursday and became the latest luxury retailer to beat market estimates. Shares of the New York-based designer, which also announced a new $1.5 billion share buyback program, rose 4 percent in morning trading.
Ralph Lauren said it expects sales in the current quarter to rise about 17% to 18% in constant currency, thanks to higher prices, which the company said will offset higher transportation and raw material costs. In the third quarter, the luxury group reported net income of $217.7 million, or $2.93 per share, compared with $119.8 million, or $1.61 per share a year earlier.
Chairman and CEO Patrice Louvet said demand is strong and can support “many more quarters” of price increases. “Our business is fundamentally healthier than it was two years ago. We are appealing to a younger, higher value, less price sensitive consumer,” he added.
The company said it expects constant currency sales for fiscal 2022 to increase 39% to 41%, compared to a previously expected increase of 34% to 36%. Ralph Lauren’s net income rose 27% to $1.82 billion in the third quarter ended Dec. 25, driven in part by a 30% increase in sales in North America and 47% in Europe.
Read also > RALPH LAUREN RAISES ITS REVENUE FORECAST FOR THIS YEAR
Featured photo : © Ralph Lauren
