May 21 (Reuters) – Ralph Lauren beat quarterly results estimates on Thursday as demand for its high-priced Polo shirts and cotton cable-knit jumpers stayed resilient among affluent shoppers, lifting its shares about 10% before the bell.
The robust quarterly performance was led by sales in Asia, the company said, with particularly strong growth in China during the Lunar New Year.
It now expects first-quarter revenues to increase in the mid- to high-single digits on a constant currency basis, compared with analysts’ estimate of a 6.9% rise, according to data compiled by LSEG.
The company also expects annual constant currency revenues to increase by about mid-single digits over last year, centered around 4% to 5%.
It reported quarterly revenue of $1.98 billion, compared with analysts’ estimate of $1.85 billion.
On an adjusted basis, Ralph Lauren posted earnings per share of $2.80 for the reported quarter, topping an estimate of $2.55 per share.
The nearly 60-year-old label, founded by designer Ralph Lauren in 1967 as a line of ties before rising to the top ranks of American fashion, is among companies that have recently bucked the trend of a slowdown in the global luxury sector.
Ralph Lauren, which implemented selective price hikes over past quarters, sees gains from strong full-price sales across its apparel and accessories brands.
(Reporting by Anuja Bharat Mistry in Bengaluru and Danielle Kaye in New York; Editing by Pooja Desai)
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