LONDON (ShareCast) - (Sharecast News) - Ralph Lauren boosted its full-year guidance on Tuesday after second-quarter revenues jumped by more than 25%.
Reported revenues at the US fashion brand rose by 26% in the three months to 25 September to $1.50bn on a reported basis, or by 25% in constant currency. Most analysts had been expecting second-quarter revenues of $1.47bn.

All regions saw double-digit growth as demand for high-end clothing picked up again following the worst of the pandemic. North America reported a 30% jump in revenues to $703m, while Europe sales were ahead 38% at $496m.

Earnings per share came in at $2.62 on an adjusted basis, excluding restructuring and other net charges, compared to $1.44 per share a year previously on the same basis.

Patrice Louvet, chief executive, said the second-quarter numbers had exceeded internal expectations "across all key financial, operating and consumer health metrics".

He said: "Our market share is growing, and we are increasing our investments to deliver on further opportunities for growth. Even as we continue to navigate a volatile global environment, we are confident in our ability to sustain our momentum."

Ralph Lauren, chairman, added: "We continue to grow and evolve in ways I never imagined, all while holding true to the spirit of timelessness that defines who are." Lauren founded the business in 1967 and remains chief creative officer as well as executive chairman.

Looking ahead, Ralph Lauren expects constant currency revenues to grow by between 34% and 36% in the current year, compared to previous guidance for a 25% to 30% increase. The operating margin is expected to be "about 12.0% to 12.5%", compared to 4.8% in the prior year and 10.3% in the fiscal 2020 full-year.

Gross margin is expected to increase at the high end of previous guidance, of 50 to 70 basis points, with stronger average unit retail growth and favourable product mix "more than offsetting" increased freight headwinds.

The New York-based company also said it expects to resume its share repurchase programme in the second half.

As at 1300 GMT, shares in Ralph Lauren were up nearly 3% in pre-market trading.

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