Home / Knowledge / News / Fashion / Ralph Lauren posts revenue growth by 1% in Q3 FY20

Ralph Lauren posts revenue growth by 1% in Q3 FY20

06
Feb '20
Pic: Ralph Lauren
Pic: Ralph Lauren
Ralph Lauren Corporation, a global leader in marketing and distribution premium lifestyle products, has reported revenue growth by 1 per cent to $1.8 billion on a reported basis in third quarter (Q3) FY20. Gross profit was $1.1 billion and gross margin was 62.2 per cent. On a reported basis, net income was $334 million in Q3 that ended on December 28, 2019. 
 
Operating expenses in Q3 were $865 million on a reported basis, including $21 million in restructuring-related and other charges. Operating income for the quarter was $224 million on a reported basis, including restructuring-related and other charges of $21 million, and operating margin was 12.8 per cent.
 
The company's marketing investment increased by 16 per cent while unit retail across direct-to-consumer network was up 6 per cent in Q3 compared to last year.
 
The company elevated their brand and connected with consumers through our Polo Sport Outdoors Limited edition launch, "7 Days, 7 Drops" holiday programme on the North America Polo app, and amplification of localised brand moments such as our live-streaming show featuring Ayunga and a WeChat mini-programme for singles' day in China. 
 
Ralph Lauren continued expansion of digital partnerships and capabilities, including the launch of their mobile app in the UK, buy online-ship from store fulfillment in China, and improvements in mobile and personalisation on their website. 
 
The company also reported positive growth in every region led by Europe and Asia, with constant currency growth of 5 per cent in each region, and slight growth in North America. Excluding Hong Kong, Asia revenues were up 9 per cent in constant currency.
 
North America revenue in Q3 increased slightly to $911 million. In retail, comparable store sales in North America were up 4 per cent, driven by a 4 per cent increase in brick and mortar stores and a 6 per cent increase in online sales. North America wholesale revenue decreased 8 per cent.
 
Europe revenue in Q3 increased 3 per cent to $438 million on a reported basis. In retail, comparable store sales in Europe were up 3 per cent, driven by a 2 per cent increase in brick and mortar stores and a 15 per cent increase in digital commerce. Europe wholesale revenue increased 2 per cent on a reported basis.
 
Asia revenue in Q3 increased 5 per cent to $290 million on a reported basis, driven by solid growth in retail. Comparable store sales in Asia decreased 1 per cent, with growth in both brick and mortar and digital commerce operations more than offset by a decline in Hong Kong. Excluding Hong Kong, comparable store sales increased 2 per cent.
 
For fiscal 2020, the company expects net revenue growth in the range of 2 to 3 per cent on a constant currency basis. Company reported that their outlook continues to include the impact of tariffs and business disruptions in Hong Kong but does not include potential impact from the coronavirus outbreak in Asia, given the dynamic situation that the company is monitoring closely with regards to their employees, consumers, and supply chain.

Fibre2Fashion News Desk (JL)


Must ReadView All

Pic: UNCTAD

E-commerce | On 19th Sep 2021

Switzerland commits $4.4 mn for UNCTAD’s e-com, digital economy work

Switzerland recently announced a contribution of $4.4 million to the...

Pic: Shutterstock/humphery

Textiles | On 18th Sep 2021

China wants to join CPTPP; Japan to consult members to respond to bid

Chinese commerce minister Wang Wentao recently submitted an...

Pic: Shutterstock

Textiles | On 18th Sep 2021

Eurozone GDP recovers quicker than expected after lockdowns: EU report

The eurozone economy recovered more rapidly than considered earlier...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Consistency is the first rule of social media

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Ghatit Laheru,

Ghatit Laheru

When the 2001 tremblor wrecked the Kachchh region of Gujarat throwing many ...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Seth Casden, Hologenix

Seth Casden
Hologenix

Hologenix is a material sciences company dedicated to developing products...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search