The US Ralph Lauren Corporation reports strong growth in all regions for the third quarter of the 2021/22 financial year, which exceeded expectations. The company’s revenue increased 27.3 percent to $1.82 billion from $1.43 billion a year earlier. Earnings totaled $217.7 million. In the same period last year, it was $119.8 million.
Double-digit growth in the US, Europe and Asia
Revenue in North America increased 30 percent to $929 million for the third quarter ended December 25, 2021. In retail, comparable sales in North America were up 38 percent, with a 40 percent increase in brick-and-mortar stores and a 32 percent increase in digital commerce. North American wholesale sales increased 11 percent.
Growth was even stronger in Europe, with third-quarter revenue of $463 million up 47 percent on a reported basis and up 50 percent at constant currencies. In retail, comparable sales in Europe increased by 55 percent, with a 68 percent increase in brick-and-mortar stores and a 27 percent increase in digital commerce. Wholesale sales in Europe increased 45 percent on a reported basis and 48 percent on a constant currency basis.
Asia is more modest, with revenue up 16 percent to $383 million on a reported basis and up 20 percent at constant exchange rates. Comparable sales in Asia were up 14 percent, with physical stores up 12 percent and digital commerce up 64 percent.
Strong digital business
Overall sales across Ralph Lauren’s digital ecosystem grew more than 40 percent in the third quarter, with strong momentum from both its own and wholesale digital channels around the world, the company said. The Asian region reports particularly high e-commerce growth rates: Online business there grew by 63 percent compared to 12 percent in stationary shops.
Operating margin in its own digital business declined slightly year-on-year in the third quarter, but increased to the level of the third quarter of fiscal 2020, significantly benefiting the overall company’s margin rate.
Outlook 2022: slight increase in forecast
For fiscal 2022, the company now expects currency-neutral revenue growth of approximately 39 percent to 41 percent year-over-year on a 53-week basis, compared to the previous outlook of 34 percent to 36 percent growth.
In addition, after Ralph Lauren repurchased 2.5 million shares of Class A common stock during the third quarter, the Board of Directors approved an additional $1.5 billion of new stock repurchase programs.
Ralph Lauren Corporation is active worldwide in the business areas of design, marketing and sales of premium lifestyle products in the five categories of apparel, footwear and accessories (each for women, men and children), home, fragrance and hospitality.