Ralph Lauren posts surprise rise in quarterly sales on steady demand

Ralph Lauren Corp (RL.N) reported a surprise rise in fourth-quarter revenue on Thursday, as affluent U.S. shoppers snapped up its pricey sweaters and suits even as overall luxury spending cooled in the region.

The company’s shares were up about 2% in premarket trading.

While luxury companies ranging from LVMH (LVMH.PA) and Gucci-owner Kering (PRTP.PA) to Coach handbag maker Tapestry (TPR.N) have flagged softer demand in the United States, Ralph Lauren’s new seasonal collections and Polo bags have continued to see steady demand from younger shoppers.

Ralph Lauren is also benefiting from a strong recovery in demand in China after the easing of COVID-19 restrictions, with sales in the country jumping more than 30% in the quarter, pulling Asia revenue up 13% to $390 million.

Net revenue rose to $1.54 billion in the fourth quarter, compared with analysts’ estimates for a drop to $1.47 billion, according to Refinitiv IBES data.

This report’s information was first seen on REUTERS; to read more, click this link.