RALPH LAUREN Corp reported a higher-than-expected quarterly profit yesterday, helped by soaring sales, but said it expected the pace of revenue growth to slow, in part because of Europe’s economic problems.
The clothing company, which sells mid-tier basics to high-end luxury labels, forecast a “mid-single digit” percentage increase in revenue for its fiscal year, which began on April 1st. That compares with a 20 per cent rise last year.
Results at Ralph Lauren, whose brands include Polo, Club Monaco and Chaps, are also under pressure because of its efforts to take more control of its China operations. That entails closing stores operated with a partner and replacing them over time with its own Ralph Lauren shops, in more desirable locations.
The company will open another 60 or so stores in China in the next three years, all in “premier” spots, chief operating officer Roger Farah told analysts on a call.
The company’s shares were up 3.9 per cent at $151.98 in afternoon trading.
Ralph Lauren has recently sought to build its business in Asia, which accounts for 12 per cent of its revenue. – (Reuters)
