Ralph Lauren Corporation (NYSE: RL) reported its third-quarter fiscal 2020 results Tuesday pre-market, including higher prices for winter wear which boosted margins and lead to results, that beat market estimates. The company’s shares spiked about 6% in premarket trading.
Ralph Lauren announced net income of USD 334.1 million, or earnings per diluted share of USD 4.41. And net revenue increased 1.4% to USD 1.75 billion in the third quarter.
The New York based fashion company reported adjusted earnings per share of USD 2.86, excluding one-time items and its adjusted gross margin grew by 60 basis points.
The fashion house further stated the higher prices for winter wear were possible, due to heavier marketing, specifically on through celebrities on social media, that lifted the brand image.
Ralph Lauren’s marketing expenses rose 16% in comparison to the same period last year, while average prices increased by 6%, in its own stores and on its website.
“Creating style that endures and inspires our consumers guides everything we do,” said Ralph Lauren, Executive Chairman and Chief Creative Officer.
Third-quarter revenue grew 1% to USD 1.8 billion and 2% in constant currency, from the same period last year.
“We continue to make strong progress on our Next Great Chapter plan amid a volatile backdrop, with third quarter results ahead of our overall expectations, including better than expected revenues, operating margin, and double-digit EPS growth,” said Patrice Louvet, President and Chief Executive Officer.
Ralph Lauren Corporation designs, markets and distributes premium lifestyle products, since more than 50 years and is one of the leading companies globally.