- Ralph Lauren (RL) shares jumped over 12% to $279.18 after reporting stronger-than-expected Q3 results, with sales up 11% to $2.14 billion, surpassing the $2.01 billion forecast.
- The company’s adjusted net income was $307.9 million, beating last year’s $275.1 million and the $286 million consensus, highlighting successful holiday sales and consumer interest in luxury fashion.
- Ralph Lauren revised its FY24 revenue growth forecast to 6-7% from 3-4%, exceeding analyst expectations, leading to an intraday record high of $289.33 and a year-over-year stock increase of nearly 63%.
Ralph Lauren (RL) shares surged over 30 points, or 12.12%, to $279.18 in midday trading Thursday after the luxury brand delivered stronger-than-expected third-quarter results. The company’s shares surged to a record high, propelled by a more robust holiday shopping season than anticipated. Sales increased by 11% year-over-year, reaching $2.14 billion, well above the $2.01 billion that analysts had forecasted, while comparable store sales grew by an impressive 12%, doubling the projected 5% growth.
The luxury apparel brand also reported an adjusted net income of $307.9 million, surpassing last year’s $275.1 million and analysts’ consensus of $286 million. This financial performance reflects Ralph Lauren’s successful navigation of the holiday market, resonating well with consumers seeking high-quality fashion. CEO Patrice Louvet highlighted the company’s encouragement from these results and reaffirmed a commitment to driving sustained growth.
Looking ahead, Ralph Lauren has adjusted its revenue growth expectations for the fourth quarter and the full fiscal year 2024, now anticipating an increase of 6% to 7% year-over-year, a notable upgrade from the earlier 3% to 4% projection. This revised forecast not only exceeds the company’s previous outlook but also outpaces analyst predictions, which had only expected growth above 3% for both periods.
As noted, the positive market response was immediate, with Ralph Lauren’s stock price jumping more than 12%, hitting an intraday record of $289.33. This surge underscores investor confidence in the brand’s strategy and market position, contributing to a nearly 63% increase in stock value on a year-over-year basis. Ralph Lauren’s performance demonstrates resilience and adaptability in the competitive luxury fashion sector, setting a positive tone for future expectations and market performance.
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