A post-lockdown luxury sales boom and new marketing efforts have allowed Ralph Lauren to experience an increased demand for dresses, polo shirts, and sports jackets yet again. After raising its annual revenue projection and exceeding expectations for first-quarter sales, the New York-based retailer’s stock surged more than 7 percent to $126.36.
The company’s CEO Patrice Louvet believes that consumers are returning to many of the main categories that were the backbone of the business before the world was hit by the Coronavirus pandemic.
According to Louvet, the business was focusing on bringing back fancy casual clothing while reducing stay-at-home items like pyjamas and sweatpants.
This year, Ralph Lauren is advertising its brand by sponsoring the US Olympic team, as well as sporting events like Major League Baseball & Wimbledon. Its first-quarter marketing expenditure was twice more than last year and 40% greater than 2019. The company’s advertising efforts now target local consumers, considering the tourism industry is under the pump presently.
Ralph Lauren now anticipates reported sales to grow between 25% and 30% in fiscal year 2022, up from a prior forecast of 20% to 25%. Sales of the brand grew to $1.38 billion for the quarter ending June 26, bettering analyst anticipation of $1.22 billion by a considerable margin.