Ralph Lauren beats on 2Q18 top line
Ralph Lauren’s (RL) total revenue fell 8.6% YoY (year-over-year) to $1.66 billion in 2Q18. The decline was within Ralph Lauren’s guidance of a 9%–10% fall.
“I am pleased with the progress we are making as we continue to strengthen the foundations of our business and elevate the expression of our iconic brand,” said Ralph Lauren, executive chairman and chief creative officer.
“While there is a lot of work to be done, I am encouraged by the early progress we are making across multiple fronts to strengthen our brand and better connect with consumers,” added Patrice Louvet, president and CEO.
Ralph Lauren beat analysts’ expectations by $18 million. The company hasn’t missed consensus expectations in the past seven quarters.
Ralph Lauren’s North America sales
The revenue from North America fell 16.% YoY to $876.7 million. The company continued to follow its “Way Forward” restructuring plan, which it introduced in June 2016 to combat a challenging retail environment and revive its brand image. Under the plan, Ralph Lauren has been reducing shipments in the wholesale channel, exiting brands, lowering off-price sales, and closing underperforming stores.
However, international sales displayed strong momentum during the quarter.
Other fashion players
Michael Kors (KORS) has also been working to improve its brand image and margins through strategic initiatives like reducing off-price sales and closing doors. The company recorded a 5.5% YoY increase in quarterly sales when it reported its results on November 6. Its top line improved after falling for four consecutive quarters.
Tapestry (TPR), formerly called “Coach,” is another company that’s focusing on revising its brand image through similar measures. Its continuous efforts have resulted in positive North America comps in the last five quarters.