Ralph Lauren beats Wall Street's first-quarter sales

Ralph Lauren beats Wall Street's first-quarter sales

- Ralph Lauren Corp. beat Wall Street's growth expectations in its fiscal first quarter, buoyed by rebounds in the United States and Europe as those markets continue to reopen. The shares jumped the most in eight months.

Same-store sales, a closely watched metric measure, were increased 108% on a constant basis during the period ended June 26, said the company in a statement Tuesday. That compares with the 97.6% average estimate compiled by Consensus Metrix. Comparable sales jumped 176% in North America, topping estimates.See more details.

The results hint at a possible recovery for the upscale apparel company after a challenging stretch during the earlier days of pandemics. Patrice Louvet struggled with a hostile demand as economic lockdowns resulted in temporary store closures in key markets. The company benefited from stronger than expected re-openings across North America and Europe, chief executive of Ralph Lauren said in the statement. Ralph Lauren sees growth opportunities even as it continues 'to manage through Covid-related challenges in select markets and our global supply chain. The results appear 'highly impressive' on the surface, but they come after a sharp decline earlier in the pandemic, GlobalData analyst Neil Saunders said in a note. Sales are still below 2019 levels and Ralph Lauren has lost market share, in part because of deliberate efforts to pull back in comparable channels and streamline markets, he said. The performance came despite restrictions in Asia due to a slower start to the vaccination campaign in Europe.Comparable sales in Asia rose 43% in the first quarter of the 2016 cycle. The market was recovering earlier than North America and Europe, with China in particular monitoring Ralph Lauren's results in recent quarters. For fiscal 2022, the company said it expects revenue to increase approximately 25% to 30% to last year on a constant currency and 53 weeks reported basis. The Board previously projected an increase of 20% to 25% on a 52 week basis.

The Ralph Lauren shares jumped 9.5% at 9: 31 a.m. in New York, the biggest gain since December. The stock had risen 14% this year through Monday's close and closed up 27.5%.