Ralph Lauren’s China business has also recovered strongly, with sales jumping more than 20% in the second quarter.
The company’s North American revenue decreased by 1% to $718m and wholesale dropped by 7% whilst Europe and Asia increased 7% and 10% to $527m and $348m, respectively.
The company has leaned on its website and physical stores to drive demand, strengthening its direct-to-consumer (DTC) business.
Ralph Lauren reported to have added 1.3m new customers to its DTC channel, which helped it jump 6 % in global DTC same-store sales in the quarter.
"Our teams delivered solid second quarter performance ahead of our commitments with stronger top-line growth across all regions, supported by our iconic brand, pricing power and continued strategic investments," said Patrice Louvet, president and chief executive officer.
Key results from Ralph Lauren’s second quarter:
- Revenue increased 3% to $1.6bn from $1.5bn the year before
- Operating income for the second quarter of Fiscal 2024 was $164m
- Net income was $147m
Louvet added: "While we continue to navigate an uncertain macro environment, we are driving offence across our Next Great Chapter: Accelerate plan's multiple growth drivers with agility, discipline and a clear focus on what we can control."
Ralph Lauren has also attributed its sales boost to its younger, more affluent customer base who have continued to snap up its luxury products.
Revenues expected to increase to low-single digits
For the fiscal year 2024, Ralph Lauren maintains its expectation of revenue growth at low-single digits when adjusted for currency fluctuations, focusing on a range of around 1% to 2%.
The company also sustains its projection of an operating margin increase of approximately 30 to 50 basis points when adjusted for currency variations, aiming for a range of 12.3% to 12.5%, primarily driven by the expansion of the gross margin.
The expected growth in gross margin in constant currency has been revised upwards to approximately 120 to 170 basis points, surpassing the previous estimate of 100 basis points.
As for the third quarter, the company foresees revenue increasing by about 1% to 2% when adjusted for currency effects, while the operating margin is expected to remain relatively stable in constant currency.
