Ralph Lauren has seen its shares jump three per cent following the release of better than expected figures over the last quarter.
In the quarter to March 31, the luxury fashion house reported net income of £31 million, compared with a loss of £105 million a year earlier, when it suffered from a massive £241 million restructuring charge.
Meanwhile, net revenues dipped 2.3 per cent from to £1.15 billion, but this was still above analysts’ expectations of £1.11 billion.
Its strategy of focusing on full-price sale within its own stores, as opposed to concessions in department stores, helped gross margins rise 440 basis points to 59.8 per cent a year earlier.
Revenues across North America dropped 14 per cent to £568.4 million, which it attributed to a fall in wholesale sales.
Bricks-and-mortar sales saw a six per cent rise over the period, but this was offset by an 18 per cent drop in sales through its online channels.
European sales jumped 13 per cent to £314 million, with online sales growing by eight per cent and brick-and-mortar sales dropping by eight per cent.
“We delivered on our commitments for the fourth quarter and full year, and we made strong operational progress,” chief executive Patrice Louvet said.
“We start the new year with a solid foundation – including a clear strategic plan to deliver long-term growth and value creation, an engaged global organization, and a strong balance sheet.”
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