Ralph Lauren has exceeded analyst expectations with its third quarter results, mainly thanks to increased sales in North America.
Ralph Lauren stores generate half of all sales
Ralph Lauren’s third quarter ended on 28 December 2013 and resulted in a 9.7 % profit increase. It raked in 175 million euro, a 15 million euro increase compared to the same quarter the year before, which analysts had not expected at all.
Total turnover grew 9.2 % to 1.5 billion euro, which trumped analysts' expectations of 1.47 billion euro. An increased collection of luxury handbags, watches and jewelry encrusted with the polo player logo helped boost turnover. Ralph Lauren also sold 14 % more to other retailers, like Macy’s, while its own stores sold 6.4 % more than last year, totaling 0.84 billion euro.
Ralph Lauren expects a 7 % turnover increase for the full fiscal year, bordering the high end of previous estimations, which were between 5 and 7 %. The fashion company’s CFO Chris Peterson believes it will manage another turnover increase next year as new stores, new products and ecommerce take flight.