New York, NY – May 24, 2024 – American fashion house Ralph Lauren posted nearly a threefold increase in profit in the last quarter of fiscal year 2023/2024, surpassing analyst expectations. The growth in profit was driven by both revenue growth, which also exceeded expectations, and strong demand in Europe and Asia.
In the three months ended March 2024, the company recorded net income of $90.7 million (83.56 million EUR), translating into diluted earnings per share (EPS) of $1.38. This represents a 180.8% increase compared to the same period in the previous fiscal year.
Excluding one-time items, profit reached $111.8 million and EPS of $1.71. In this case too, the company surpassed analyst expectations, who had forecast adjusted EPS of $1.66.
Ralph Lauren also performed well in terms of revenue, which reached $1.57 billion compared to $1.54 billion the previous year. Analysts had predicted revenue growth of only $1.56 billion.
The growth in revenue was primarily driven by strong demand from European and Asian customers. The company also reduced the scope of discounts. Sales in the key Chinese market performed particularly well, increasing by over 25%.
Ralph Lauren’s results highlight the resilience of the luxury fashion industry in the face of current economic challenges. The company expects growth to continue in the next fiscal year.
Q4 FY 2023/2024 results in a clear table:
| Item | Q4 FY 2023/2024 | Q4 FY 2022/2023 | Change (%) |
|---|---|---|---|
| Revenue | 1.57 | 1.54 | 2 |
| Net income | 90.7 | 32.4 | 180.8 |
| EPS | 1.38 | 0.49 | 181.6 |
| Adjusted EPS | 1.71 | – | – |
Sources:
- Reuters: https://www.reuters.com/business/finance/
- RTTNews: https://www.rttnews.com/
