Ralph Lauren has disclosed its financial performance for the second quarter of the 2024 fiscal year, showcasing a 3% increase in revenue on a reported basis (2% in constant currency), reaching a total of US$1.6 billion.
In North America, revenue experienced a marginal 1% decline during the quarter, amounting to US$718 million. Despite this, there was a 4% rise in comparable store sales, with digital commerce and brick-and-mortar stores contributing equally with a 4% increase each. However, wholesale revenue in the region faced a 7% year-on-year reduction.
Europe exhibited a robust performance with a 7% revenue boost to US$517 million. Comparable store sales in the region grew by 6%, comprising a 5% increase in brick-and-mortar stores and a 14% surge in digital commerce. Although wholesale revenue remained steady, it witnessed a 7% decline in constant currency.
Asia emerged as a growth driver, reporting a substantial 10% revenue increase to US$348 million on a reported basis. Comparable store sales in the region surged by 8%, with brick-and-mortar sales growing by 7% and digital commerce experiencing an 19% uplift.
The second quarter's gross profit reached US$1.1 billion, achieving a gross margin of 65.5%, while net income totalled US$147 million.
Looking ahead to the full fiscal year, Ralph Lauren anticipates low-single-digit revenue growth on a constant currency basis, projecting around 1-2%. A similar growth trajectory is expected for the third quarter.President and CEO Patrice Louvet said: “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. 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.”