Ralph Lauren revenue rises after social media marketing boost
Ralph Lauren today posted a modest rise in revenue in the first quarter, after bumper marketing campaigns helped drive trading among younger shoppers.
The luxury retailer reported a three per cent rise in revenue to $1.4bn (£1.2bn) in the three months to the end of June, while net profit rose to $117m from $109m in the same period last year.
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Ralph Lauren said the figures, which came in ahead of analysts’ expectations, were boosted by the firm’s increased marketing efforts.
The company said it spent 19 per cent more on new campaigns in the last quarter as it looks to win over millennial audiences.
However, the preppy retailer struck a cautious tone over its outlook, warning that exchange rates were expected to weigh on revenue growth and margins.
Shares in Ralph Lauren fell almost four per cent following the announcement.
“We delivered first quarter results in line with our overall expectations, with better than expected operating margin and double-digit earnings per share growth,” said president and chief executive Patrice Louvet.
“Our performance was driven by strong continued momentum in our international markets and expense discipline across the organisation, while we continued to invest in elevating our brands and stabilise our North America business against a more volatile backdrop.”
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Revenue from the firm’s core North American market rose three per cent to $719m, while revenue from Europe and Asia rose two per cent and four per cent respectively.
Ralph Lauren has rolled out a new limited edition clothing ranges and launched a partnership with golfer Justin Thomas as it looks to double down on core products such as Polo shirts.
Main image credit: Getty