(Reuters) – Ralph Lauren posted first-quarter profit that beat expectations on Wednesday as strong demand for its jeans and polo shirts in Europe and China offset slowing U.S. sales.
The cautious inventory management strategy adopted by wholesalers led to a 4% drop in the group’s turnover in North America, to $608 million (€556.83 million), but sales in Europe and Asia increased year-on-year.
This contrasts with the recent series of disappointing results recorded by Ralph Lauren’s European competitors, including LVMH, Hugo Boss, Richemont, Burberry and Kering.
The group recorded net sales of $1.51 billion over the period, up 1% year-on-year while analysts were expecting a decline of 0.46%, according to LSEG data.
Adjusted earnings per share were $2.70, above analysts’ expectations of $2.47.
Adjusted gross margin also increased 170 basis points to 70.5%, supported by lower cotton costs and full-price sales.
The group reaffirmed its sales and margin forecasts for 2025.
Ralph Lauren shares rose 4% in pre-market trading.
(Written by Savyata Mishra in Bangalore, Augustin Turpin, edited by Kate Entringer)
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