©Reuters. Ralph Lauren (RL) shares rise as Asia leads third-quarter sales surge
Shares of Ralph Lauren (NYSE:) jumped 6.9% premarket on Thursday after third-quarter earnings impressed investors, beating analysts’ consensus expectations.
The fashion company reported third-quarter earnings of $4.17, $0.62 higher than analysts’ estimate of $3.55. Revenue for the quarter was $1.9 billion, up 6% year-over-year and above the consensus estimate of $1.87 billion.
Ralph Lauren noted that all regions exceeded expectations, especially Asia, while momentum in the direct-to-consumer channel continued. Additionally, foreign currency had a positive impact on RL’s revenue growth by approximately 90 basis points in the third quarter.
“We had a strong holiday, with continued progress in our next big chapter: Accelerate plan and third-quarter results that exceeded our expectations driven by continued momentum in our direct-to-consumer channels,” said Patrice Louvet, CEO of RL. “These results highlight the diversity of our strategic growth drivers around the world in a still volatile operating environment, as well as our culture of operational discipline and agility.”
For fiscal 2024, the company continues to expect revenues to increase by approximately low single digits compared to last year, now focusing around 2% versus 1-2% previously, with foreign currency now expected to have a modest advantage on revenue growth. by approximately 10 basis points.
For the fourth quarter, RL expects revenue growth to be in a range around 2%, with foreign currency expected to negatively impact revenue growth by approximately 160 basis points.