Net Income Increased 180% in the Fourth Quarter, Surpassing Investor Expectations as the Brand Refocuses on Core Products
Ralph Lauren Corp. has surpassed its fourth-quarter earnings estimates for 2024. This success is driven by a continued emphasis on its core products and a strategy to elevate its average unit prices.
In the fourth quarter, Ralph Lauren’s net income saw a significant increase of 180 percent, reaching $90.7 million, or $1.38 a share, up from $32.3 million, or 48 cents, in the same period a year ago. Adjusted earnings were reported at $1.71 a share, which was 5 cents more than the $1.66 analysts expected, according to figures from Yahoo Finance.
Revenues grew 1.8 percent in the three months ending in March, rising from $1.54 billion to $1.57 billion. In Ralph Lauren’s direct-to-consumer network which accounts for roughly two-thirds of its business, average unit retail prices advanced 13 percent during the quarter.
While witnessing difficult consumer conditions, the company cautiously estimated this year’s revenue growth to be between 2 percent and 3 percent, which slightly misses the 4 percent Wall Street had predicted.
The initial response from investors was somewhat reserved, shown by a 1.3 percent decline to $162 in Ralph Lauren’s premarket trading shares on Wall Street.
“We are staying on offense by continuing to invest in our brand, our portfolio of iconic core products and our consumer-centric ecosystems in top cities globally,” stated Patrice Louvet, the corporation’s president and chief executive officer. He added that this strategy, along with their operating discipline and the commitment of their staff, will “continue to fuel our sustainable growth and value creation into the future.”
Louvet enters the new financial year alongside a recently promoted finance chief in Justin Picicci. After a planned succession operation, Picicci will assume the role of chief financial officer from Jane Nielsen, who plans to continue as chief operating officer through fiscal 2025.
Despite adapting to changing circumstances, Ralph Lauren remains committed to its timeless brand centrality.
“Our brand has always been about inspiring people to live the life of their dreams. We marry elegance and style in aspirational worlds — from our recent fashion show featuring elevated classics to the vibrant home line we showcased last month in Milan — our teams around the world are delivering our vision with passion and care,” commented Ralph Lauren, executive chairman and chief creative officer of the company.