North American revenue declined by 1% in the quarter to US$718 million. Comparable store sales were up by 4% in North America, with an increase of 4% in digital commerce and 4% for brick-and-mortar stores. Wholesale revenue in the region fell by 7% year-on-year.
In Europe, revenue was up by 7% to US$517 million with comparable store sales growth of 6%, a brick-and-mortar increase of 5% and 14% growth for digital commerce. Wholesale revenue was flat but declined by 7% in constant currency.
Asia had growth of 10% in the period to US$348 million on a reported basis, while comparable store sales were up by 8%, brick-and-mortar grew by 7% and digital commerce was up by 19%.
Gross profit for the second quarter of the year was US$1.1 billion with a gross margin of 65.5%. Net income totalled US$147 million.
Looking forward to the full fiscal year, Ralph Lauren expects revenues to be up in low-single digits year-on-year on a constant currency basis, around 1-2%. For the third quarter, similar growth is expected.
President and CEO Patrice Louvet said: “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. While we continue to navigate an uncertain macro environment, we are driving offense across our Next Great Chapter: Accelerate plan’s multiple growth drivers with agility, discipline and a clear focus on what we can control.”
