(Reuters) – Ralph Lauren raised its annual sales forecast on Thursday after beating expectations in the third quarter, thanks in part to sustained demand for its clothing in North America, Europe and China.
Sweater maker Polo Bear now expects fiscal 2025 revenue to rise 3% to 4%, up from a 2% to 3% rise previously.
The group’s results contrast with the decline in the luxury sector, mainly in the key market of China, which was detrimental to major European fashion houses such as Hugo Boss, Kering and LVMH.
Ralph Lauren has seen strong activity in China thanks to its relatively small sales base accounting for about 7% of its total sales, according to Citigroup analysts.
On the North American market, which represents 44% of the group’s turnover, turnover increased by 3% while a 7% increase in turnover was recorded on the European market.
The group’s net revenue rose 6% to $1.73 billion (€1.60 billion), while analysts had forecast revenue of $1.68 billion, according to data compiled by LSEG.
The average selling price increased 10% in the quarter ended September 28, which, coupled with lower cotton costs, helped the company’s adjusted gross margin increase 160 basis points for reach 67% compared to the previous year.
(Reporting Savyata Mishra in Bangalore; Etienne Breban, editing by Kate Entringer)
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