Ralph Lauren earnings report showed its North America revenue in the fourth quarter decreased 14 percent as the retailer continues to struggle in the region. However, the company topped analysts’ profit and sales forecasts for at least its eighth consecutive quarter.
According to Reuters, though sales continue to fall, the 1 percent drop in same-store, fourth-quarter figures was less than a 2.3 percent drop anticipated by analysts. In addition, the fourth quarter adjusted gross margin was 59.8 percent, compared with 55.4 percent the previous year. Net revenue also fell 2.3 percent to $1.53 billion, but was still above analysts’ average estimate of $1.48 billion.
Patrice Louvet, president and CEO of Ralph Lauren, said in a press release, “We delivered on our commitments for the fourth quarter and full year, and we made strong operational progress. We start the new year with a solid foundation — including a clear strategic plan to deliver long-term growth and value creation, an engaged global organization, and a strong balance sheet. We look forward to discussing our plan in more detail at our Investor Day on June 7. Ralph and I are also pleased to welcome Michael George, who has recently joined our Board of Directors, and Angela Ahrendts, who will be nominated for election to join our Board in August.”
Executive Chairman and Chief Creative Officer Ralph Lauren said, “As we reflect on the year, I am incredibly proud of what the team is doing to elevate and energize our brand around the world. Patrice and I have developed a strong partnership over the past year and I am confident that we are on the right path as we kick off our 50th anniversary celebration and build the future of our iconic company and brand.”