Ralph Lauren Reports Strong Q3 Profit

Shares of Ralph Lauren Corp. (RL, -0.14%) surged 6.4% during premarket trading on Thursday, reaching a nine-year high. The luxury lifestyle products company announced impressive fiscal third-quarter results, exceeding Wall Street expectations. Net income rose to $276.6 million, or $4.19 per share, compared to $216.5 million, or $3.20 per share, during the same period last year. Adjusted earnings per share stood at $4.17, surpassing the FactSet consensus of $3.57. The company attributes this exceptional performance to robust holiday sales and continuous growth in the direct-to-consumer channels.

Revenue Growth and Market Outlook

Ralph Lauren witnessed a 5.6% increase in revenue, reaching $1.93 billion, exceeding the FactSet consensus of $1.87 billion. While North American revenue remained relatively flat, Europe revenue rose by 11% and Asia revenue recorded a remarkable 16% increase. Despite its outstanding Q3 performance, the company projects low-single digit percentage revenue growth for fiscal year 2024. Analysts estimate the revenue to be around $6.57 billion, implying a gentle 2% rise.

Market Response

Investors responded positively to the news, as the stock price is poised to open at its highest level since February 2015. Over the past three months leading up to Wednesday, Ralph Lauren shares have rallied by an impressive 26.3%, while the S&P 500 index (SPX, +0.82%) has advanced by 14%.