Ralph Lauren raises its sales by 6.5%, but shrinks its profit by 23.7% in the first half

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Ralph Lauren closes the halfway point of the exercise at double speed. The American fashion company has ended the first six months of the year (period closed on October 1) with an increase in sales, but with a downward result.

Specific, the company has recorded revenues of 3,070 million dollars6.5% more than in the same period of 2021, while the net result has shrunk 23%, to 273 million dollars.

In the second quarter alone, sales have risen by 4.9% and profit has improved by 7.9%. According to the company, the strengthening of the dollar has had a negative impact of 800 basis points on revenue growth during the second quarter.

By 2023, Ralph Lauren has maintained its earnings prospects and expects to post an 8% rise on a like-for-like basis, but has lowered its estimates for operating margin, which it now forecasts to be in the lower 14-14.5% range due to the dollar impact.

For the third trimester, the US company plans to increase its sales in the low one-digit range due to the impact of the dollar, which will subtract 780 basis points from growth. “The third quarter reflects caution due to the loss of consumer confidence in Europe and North America,” says the company.

Last September, the group set out a new strategic plan that calls for growth of 9% on average through 2025. “Our multiple growth engines helped deliver strong results in the second quarter with outperformance in both revenue and profit as that we continue to navigate in a highly dynamic global environment”, said Patrice Louvet, CEO of the group.

Contrary to other fashion groups, Asia led Ralph Lauren’s sales growth in the first half, with a turnover increase of 16%, while in Europe revenues registered a rise of 6.9% and in North America , the largest market for the company, the rise was 4.5%.

by channels, the license business has been the one that has evolved the best in the periodwith an increase of 12%, while sales through own and multi-brand stores closed the first six months of the year with increases of 9% and 7.7%, respectively.

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