Ralph Lauren Corporation, a leading US-based firm in the design, marketing, and distribution of luxury lifestyle products, has reported a rise in revenue for the second quarter of fiscal 2024 (Q2 FY24), with a 3 per cent increase to $1.6 billion on a reported basis and a 2 per cent rise in constant currency terms.

Breaking down the performance by region, North America saw a slight decrease in revenue by 1 per cent to $718 million. However, retail comparable store sales in North America showed resilience, improving with a 4 per cent increase, attributed equally to digital commerce and brick and mortar stores. North America wholesale revenue, in contrast, fell by 7 per cent, the company said in a media release.

American firm Ralph Lauren Corporation reported a revenue increase to $1.6 billion in Q2 FY24, with gains in Europe and Asia offsetting a slight decline in North America.
Despite higher operating expenses, gross margin improved, while net income saw a slight decrease compared to the previous year.
Gross profit for Q2 FY24 reached $1.1 billion.

In Europe, the company enjoyed a 7 per cent revenue boost to $527 million on a reported basis, although it remained flat when measured in constant currency. Retail comparable store sales in Europe climbed by 6 per cent, driven by a 5 per cent uptick in brick-and-mortar stores and a significant 14 per cent surge in digital commerce. Meanwhile, Europe’s wholesale revenue was on par with the previous year on a reported basis but declined by 7 per cent in constant currency.

Asia was a highlight for the company, with revenue rising by 10 per cent to $348 million on a reported basis and an impressive 13 per cent in constant currency. The region’s comparable store sales increased by 8 per cent, with brick and mortar stores up 7 per cent and digital commerce leaping by 19 per cent.

Gross profit for Q2 FY24 reached $1.1 billion, and the gross margin stood at 65.5 per cent. The adjusted gross margin was slightly lower at 65.4 per cent, but still marked an improvement of 80 basis points over the prior year.

However, operating expenses increased, with reported expenses at $906 million and adjusted expenses at $897 million, up 11 per cent from the previous year. This pushed the adjusted operating expense rate to 54.9 per cent, compared to 51.2 per cent in the prior year.

Operating income for the quarter was reported at $164 million with a reported operating margin of 10.1 per cent. Adjusted figures showed a slightly better picture, with operating income at $172 million and a margin of 10.5 per cent, although this was a significant 290 basis points lower than the previous year.

Net income for Q2 FY24 was $147 million, or $2.19 per diluted share, on a reported basis. Adjusted net income was slightly less at $141 million, or $2.10 per diluted share. These figures were both down from the prior year’s net income of $151 million, or $2.18 per diluted share, reported, and $154 million, or $2.23 per diluted share, adjusted, the release added.

“Our teams delivered solid second quarter performance ahead of our commitments with stronger top-line growth across all regions, supported by our iconic brand, pricing power and continued strategic investments,” said Patrice Louvet, president and chief executive officer. “While we continue to navigate an uncertain macro environment, we are driving offense across our Next Great Chapter: Accelerate plan’s multiple growth drivers with agility, discipline and a clear focus on what we can control.”

Fibre2Fashion News Desk (DP)