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By
Reuters
Published
Feb 5, 2019
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Ralph Lauren beats holiday expectations as marketing push delivers

By
Reuters
Published
Feb 5, 2019

Ralph Lauren reported better-than-expected holiday-quarter revenue and profit on Tuesday, as the luxury fashion group’s bigger push on marketing helped it woo more customers, sending its shares up more than 8 percent.


Ralph Lauren - Spring-Summer2019 - Womenswear - New York - © PixelFormula



The 50-year-old retailer, known for its preppy Polo shirts, said it spent about 18 percent more on marketing during the quarter, sponsoring fashion events and hiring models and actresses to promote its brand on social media.

“Solid execution on our key initiatives, especially during the important holiday period, delivered better-than-expected results for the third quarter” Chief Executive Officer Patrice Louvet said.

Revenue rose to $1.73 billion from $1.64 billion, beating analysts’ average estimate of $1.66 billion, according to IBES data from Refinitiv.

The company reported net income of $120 million (92 million pounds), or $1.48 per share, in the third quarter ended Dec. 29, compared with a loss of $81.8 million, or $1.00 per share, a year earlier when it incurred charges related to changes in U.S. tax laws.

Excluding items, it earned $2.32 per share, above analysts’ estimates of $2.15.

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