By Sam Boughedda
Investing.com -- Fashion brand Ralph Lauren Corp (NYSE:RL) reported its fourth-quarter results Tuesday, with revenue and earnings per share above expectations.
The company said demand remained strong across its biggest markets, continuing the recent trend of high-end fashion brands not being impacted by inflation.
Other luxury brands such as Watches Of Switzerland (LON:WOSG) and Canada Goose (NYSE:GOOS) recently stated that demand remains strong, despite consumers being hit by soaring inflation.
Ralph Lauren's fourth-quarter revenue outperformed forecasts of $1.46 billion, coming in at $1.5 billion. The 18% increase year over year was boosted by revenue in the North American region rising 19% to $674 million, revenue in Europe increasing 26% to $467 million, and revenue in Asia climbing 20% to $346 million.
The company reported earnings per share of $0.49, beating analysts' expectations of $0.37.
Furthermore, full-year fiscal 2022 revenue increased by 41% to $6.2 billion, exceeding pre-pandemic levels. The company reported a net profit for the year of $600 million, compared to a net loss of $121.1 million a year ago.
"Our teams around the world executed exceptionally well to deliver fourth quarter and full year results that exceeded our expectations as we continued to progress on our long-term strategic commitments," said Patrice Louvet, President and Chief Executive Officer.
The company expects fiscal 2023 revenue to increase in the high single digits. In addition, gross margin is predicted to increase 30 to 50 basis points.
For its fiscal first quarter, Ralph Lauren expects revenue growth will be in a range of around 8%.
The company said its outlook is based on its assessment of the current macroeconomic environment, including the global supply chain, inflationary pressures, the war in Ukraine, and Covid-related disruptions.
Ralph Lauren's share price jumped more than 2% following the results.