Despite higher than expected results in the first quarter, Ralph Lauren stumbles on Wall Street. Stocks fell by 3% in pre-market trading.
Ralph Lauren does not fall through the cracks. While it forecasts sales well below expectations for the current quarter, investors are sanctioning the stock. A drop in revenues that shows a more general slowdown in luxury spending on the American continent.
Ralph Lauren, which typically accounts for almost half of its annual revenue in the US, is seeing a 10% decline in quarterly sales in the country, including declines in wholesale orders, department stores and apparel retailers.
On the other hand, demand in China has resumed almost normally, after the end of the restrictions. The brand saw its sales jump by 50% in the first quarter, boosting revenues in the Asia region by 13% to $378 million.
Over the first three months of its fiscal year, the group realized a net profit of $132 million or $1.96 per security, compared to a profit of $123 million in 2022.
Adjusted profit per share was $2.34, with net sales up slightly (+1%) to $1.5 billion.
Ralph Lauren expects stability as well as a small increase in its second quarter revenues against a 3.3% increase expected by the market.
For the full year 2024, the company also expects revenues to grow moderately with an operating margin up by about 30 to 50 points (at constant exchange rates).
Read also >Chanel, Armani, Ralph Lauren: luxury goods sales slow in the United States
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