Ralph Lauren Corp.’s stock (RL) initially surged by approximately 5% before experiencing a slight decrease in early Wednesday trading following the release of its fiscal second-quarter results. The luxury apparel company exceeded expectations, delivering strong profits and revenue.
Impressive Financial Results
For the quarter ended September 30, Ralph Lauren Corp. reported net income of $146.9 million, corresponding to earnings per share (EPS) of $2.19. This compares favorably to the year-earlier period, which saw net income of $150.5 million and EPS of $2.18. The company’s revenue also witnessed an uptick, rising from $1.579 billion to $1.633 billion.
Successfully Reaching Younger Consumers
Ralph Lauren Corp. attributes its robust performance to its successful resonance with younger consumers. The company attracted 1.3 million new customers to its direct-to-consumer channel and achieved a global social media following of 55.9 million.
Positive Outlook for Fiscal 2024
Despite slightly increased caution regarding the wholesale channel, Ralph Lauren Corp. maintains a positive outlook for fiscal 2024. The company expects revenue to grow in the low-single digits on a constant currency basis, approximately 1% to 2%. However, it anticipates a negative impact on revenue growth of approximately 50 basis points due to foreign currency exchange rates.
Ralph Lauren Corp. projects third-quarter revenue to increase by 1% to 2% in constant currency.
Throughout the year, RL stock has demonstrated solid growth, gaining 6.8%. In comparison, the S&P 500 has experienced a 14% increase.
Ralph Lauren Corp.’s strong financial results and successful engagement with younger consumers position the company for continued growth and success in the future.