© Reuters. Ralph Lauren (RL) shares climb as Asia leads Q3 sales rise
Ralph Lauren (NYSE:) shares jumped 6.9% premarket Thursday after its third-quarter earnings impressed investors, topping analyst consensus expectations.
The fashion company reported third-quarter earnings of $4.17, $0.62 better than the analyst estimate of $3.55. Revenue for the quarter came in at $1.9 billion, up 6% year-on-year and above the consensus estimate of $1.87 billion.
Ralph Lauren noted that all regions exceeded expectations, led by Asia, while the momentum in its direct-to-consumer channel has continued. In addition, foreign currency favorably impacted RL’s revenue growth by approximately 90 basis points in the third quarter.
“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,” said Patrice Louvet, RL’s CEO. “These results underscore the diversity of our strategic growth drivers around the world in a still-volatile operating environment as well as our culture of operating discipline and agility.”
For fiscal 2024, the company continues to expect revenues to increase by approximately low-single digits compared to last year, now centering around 2% compared to 1% to 2% previously, with foreign currency now expected to have a modest benefit on revenue growth of approximately 10 basis points.
For the fourth quarter, RL expects revenue growth to be in a range centered around 2%, with foreign currency expected to negatively impact revenue growth by approximately 160 basis points.