Ralph Lauren rejuvenating core products and pushing under-developed categories
Global leader in the design, marketing, and distribution of premium lifestyle products, Ralph Lauren Corporation’s standard unit retail across its direct-to-consumer network is up by 9% through elevating the product assortment and continued quality of sales initiatives. Denim and outerwear category sales trends were encouraging, driven by an improved merchandising and distribution focus. Its limited edition Polo collections continues to gain grip in the U.S. due to its Polo mobile app and marketing programs globally.
Ralph Lauren, the Executive Chairman and Chief Creative Officer, says “Our passionate teams are focused on staying true to the authentic expression of the Ralph Lauren lifestyle while evolving with the changing consumer and global retail landscape around us. As we continue to strengthen the foundations of our business and elevate our iconic brand, I am pleased with the progress we are making.”
The company’s strategic investments in brand-building, product, digital, and global expansion are on the right track, while the strength of its balance sheet continues to be at competitive advantage with its solid execution on its key initiatives. Increased marketing investment by 18% to last year, with a focus on driving brand awareness and engagement over the holiday season. The company elevated its brand and connected with new consumers through its collaboration with UK-based streetwear brand Palace and its Winter Stadium Limited Edition launch.
Growing rapidly internationally
This year, the North America sales increased 3% to last year, with 4% retail comps more than offsetting planned reductions to the off-price wholesale channel. Substantial growth in international markets, with double-digit revenue growth in both Europe and Asia on a reported and constant currency basis. The company’s momentum in Asia continues with 11% revenue growth and 4% comps in constant currency, led by 19% constant currency growth in Greater China and strength across Japan, South Korea and Australia. The company is continuing to expand its global distribution with new retail stores and digital pure players.
Digital sales growing
RL’s global digital revenue grew 20% to last year in constant currency, driven by strength across all regions. Growth in its directly-operated digital flagships exceeded its expectations, with a digital comp increase of 21% in North America as it anniversaried its platform upgrade and 13% in Europe. These improvements were driven by brand building initiatives, an enhanced consumer experience, and higher quality of sales – all enabled by its new platform. The company reinforced its brand presence in China through continued expansion of its China digital commerce site launched in September 2018 and pure-play partnerships.
Ralph Lauren Corporation’s brand names, which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, Chaps, and Club Monaco, among others, constitute one of the world’s most widely recognized families of consumer brands.
Source: Ralph Lauren Corporation, Headquarters, New York- U.S.News US