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NEW YORK — Ralph Lauren Corp.'s profit and revenue exceeded expectations, a sign the preppy apparel maker 's plan to recapture its appeal is gaining ground. The company also said it will boost its dividend by 10 percent.
Companywide same-store sales, a key metric for retailers, gained 1 percent in the company’s latest quarter, when excluding currency swings. That’s just short of analysts’ projections, according to Consensus Metrix.
Key Insights
The results show Chief Executive Patrice Louvet’s efforts to boost profitability are paying off. Gross margins rose in the quarter, a sign the company has been successful in its push to steer the brand away from off-price retail and toward direct-to-consumer online sales.
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The retailer has been trying all the tricks in the book to appeal to younger consumers, and it’s working. It’s been partnering with social media influencers and celebrities, which resonates with the money-spending Gen-Z cohort, plus leaning into values that generation supports, including its recent “Family is Who You Love’’ campaign.
Still, its home market continues to face issues. North America’s same-store sales at brick-and-mortar stores fell 7 percent, even as Europe and Asia logged growth.
Market Reaction
The shares rose 2.1 percent in premarket trading at 8:17 a.m. in New York. The stock had gained 14 percent this year through Monday’s close.
By Kim Bhasin, with assistance from Karen Lin; editors: Anne Riley Moffat, Lisa Wolfson and Jonathan Roeder.
