RALPH LAUREN SEES GROWTH IN FIRST QUARTER

Ralph Lauren Corporation delivered better-than-expected top- and bottom-line results in first-quarter fiscal 2020. This marked the company’s 18th straight quarter of earnings beat while sales topped estimates for the sixth straight quarter.

The brand noted that cost-containment efforts as well as continued investment in brand elevation and other strategic endeavors including “Next Great Chapter” aided the quarterly results.

In the first quarter of fiscal 2020, revenue increased by 3 percent to $1.4 billion on a reported basis and was up 5 percent in constant currency, driven by positive results across regions.

By region, North America revenue in the first quarter increased 3 percent to $719 million, while wholesale revenue in the region increased 2 percent. In retail, comparable store sales in North America were up 1 percent, driven by a 1 percent comp in brick-and-mortar stores and flat comps at ralphlauren.com.

In Europe, revenue in the first quarter increased 2 percent to $361 million on a reported basis, while wholesale revenue was flat. In retail, comparable store sales in Europe were up 4 percent, driven by a 2 percent increase in brick-and-mortar stores and a 22 percent increase in digital commerce.

But, in Asia, the brand found most of its success this quarter. Asia revenue in the first quarter increased 4 percent to $259 million on a reported basis and increased 8 percent in constant currency, driven by solid growth in retail. Comparable store sales in Asia increased 5 percent, reflecting growth in both brick-and-mortar and digital commerce operations.

“Our company continues to evolve with the world around us while staying true to our values and creating inspiring style that endures,” said Ralph Lauren, executive chairman and chief creative officer. “And more than 50 years in, I am very encouraged by the work we are doing to strengthen the foundations of our business, energize our teams and elevate our iconic brands.”

“We delivered first-quarter results in line with our overall expectations, with better than expected operating margin and double-digit EPS growth,” added Patrice Louvet, president and chief executive officer. “Our performance was driven by strong continued momentum in our international markets and expense discipline across the organization, while we continued to invest in elevating our brands and stabilize our North America business against a more volatile backdrop.”