REUTERS: Ralph Lauren Corp on Tuesday beat Wall Street estimates for quarterly revenue and profit powered by growth in North America, as a social media marketing blitz and new launches drove demand, sending its shares up 5per cent in premarket trading.
The New York-based company, like other apparel and handbag retailers, is trying to revive growth after years of heavy discounting and a strategy of flooding the market with its lower-end goods.
Ralph Lauren has reinvigorated sales of core products like its Polo shirt, while hiring prominent social-media personalities to promote its clothing and accessories.
This helped the company record a 3.1per cent rise in North America sales, its biggest region by revenue.
"Our performance was driven by strong continued momentum in our international markets and expense discipline across the organization," Chief Executive Officer Patrice Louvet said.
In Europe and Asia, where Ralph Lauren is seen as a more premium brand, sales rose 1.5per cent and 4.3per cent respectively.
Excluding one-time items, the company earned US$1.77 per share. Net revenue rose to US$1.43 billion.
Analysts were expecting a profit of US$1.66 per share and revenue of US$1.42 billion, according to IBES data from Refinitiv.
Net income rose to US$117.1 million, or US$1.47 per share, in the first quarter ended June 29, from US$109 million, or US$1.31 per share a year earlier.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber)