The US fashion group Ralph Lauren Corporation recovered well from the consequences of the Covid 19 pandemic in the 2021/22 financial year. Not least thanks to a surprisingly successful final quarter, the company was able to achieve a strong increase in sales and a high profit.
In its most recent fiscal year ended April 2, Ralph Lauren had sales of $6.22 billion. This corresponded to an increase of 41 percent compared to the previous year, in which the effects of the corona crisis had had a significant impact on business. Adjusted for exchange rate changes, revenues increased by 42 percent.
Double-digit growth rates in all market regions contributed to the significant increase. In North America, sales increased by 49 percent to 2.97 billion US dollars, in Europe even by 53 percent (currency-adjusted +54 percent) to 1.78 billion US dollars. In Asia, revenue grew 25 percent (+27 percent at constant currency) to $1.29 billion.
The net profit reaches a level of around 600 million US dollars
Because the gross margin was significantly higher than in the previous year and operating expenses rose by only 23 percent, the group made strong progress in terms of earnings. Operating profit was $798.4 million after posting an operating loss of $43.6 million in 2020/21, not least due to extensive impairments and high restructuring costs. The bottom line was a net profit of 600.1 million US dollars (560.1 million euros). The previous year, Ralph Lauren was down $121.1 million. Adjusted for special effects, the surplus rose from 127.0 to 623.3 million US dollars.
The group owed the unexpectedly good figures to surprisingly strong growth in the fourth quarter: In the last three months of the financial year, sales were 1.52 billion US dollars and thus 18 percent (currency-adjusted +22 percent) above the corresponding level of the previous year. Net income was $24.4 million. In the final quarter of the previous year, the fashion house still had to accept a loss of 74.1 million US dollars.