Ralph Lauren said the net revenue increased at the back of foreign currency favorably impacting revenue growth by approximately 90 basis points in the third quarter.
The brand saw global direct-to-consumer comparable store sales grow 9% in the quarter, which it attributed to positive retail comparatives across all regions and channels.
North America recorded a revenue increase to $933m, which the brand described as “approximately flat” compared to last year. In contrast, Europe experienced an 11% rise in revenue to $522m, while Asia saw the highest increase of 16% to $446m.
Operating income rose to $318m from last year’s $282.1m in the third quarter.
Net income increased from $217m to $277m when compared to the same quarter in the previous year.
Patrice Louvet, president and chief executive officer at Ralph Lauren, said: “We delivered a strong holiday, with continued progress on our Next Great Chapter: Accelerate plan and third quarter results that exceeded our expectations led by continued momentum in our direct-to-consumer channels.”
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Louvet believes that these results underscore the diversity of Ralph Lauren’s strategic growth drivers around the world in a still-volatile operating environment as well as its culture of operating discipline and agility.
Ralph Lauren highlighted that its outlook is based on its best assessment of the current geopolitical and macroeconomic environment, including inflationary pressures, other consumer spending-related headwinds and foreign currency volatility, among others.
For fiscal year 2024, the brand continues to expect revenue growth in low-single digits compared to last year on a constant currency basis, with the forecast now focusing on around 2%, compared to 1% to 2% previously.
It added that with current exchange rates factored in, foreign currency is projected to have a modest benefit on revenue growth of approximately 10 basis points in fiscal year 2024.