Ralph Lauren has posted better-than-expected quarterly profit and revenue, as the luxury retailer’s strategy to sell more products at full price and control costs paid off.
In the three-month period ending June 30, net income skyrocketed 83 per cent to $109 million, up from $59.5 million a year earlier, which was also helped by a lower tax rate.
Revenue also rose 3.2 per cent to $1.39 billion, the first increase in at least 13 quarters and surpassing analyst estimates of around $1.36 billion.
Ralph Lauren’s results may have been boosted by its withdrawal from department stores, where they were often sold at discounted prices, in order to regain its premium brand status.
The New York-based fashion house has also focused on its core brands, cut jobs, reduced excess inventory and shut underperforming stores, while also pushing its supply chain to bring the latest fashion to stores faster.