Ralph Lauren Corp has reported better-than-expected profits and a surprising increase in fourth-quarter revenue, driven by the success of its new seasonal collections that resonate with affluent shoppers. Despite a cooling luxury spending climate in the United States, the company's focus on outdoor wear and women's clothing has attracted more customers.
The demand for its cable-knit sweaters and Polos have been particularly strong, allowing Ralph Lauren to minimize promotions. In China, the key luxury market, the company saw a remarkable sales jump of over 30%. While other luxury brands have faced softer demand in the US, Ralph Lauren's core higher-income customer base has remained resilient.
The company's performance, even during volatile times, has impressed analysts, and its Asia segment revenue also experienced a significant increase. Ralph Lauren's net revenue for the fourth quarter exceeded expectations, and the company foresees continued growth in fiscal 2024, primarily driven by constant currency revenue expansion in the low-single-digit range.