NEW YORK, United States — Ralph Lauren returned to growth in North America in its second fiscal quarter as a strategy to intensify marketing on social media bore fruit, also helping the upscale fashion group top Wall Street revenue estimates on Tuesday.
Its increased focus on social media is aimed at wooing more high-spending millennials as a lack of big discounts and promotions has shrunk its clientele in recent years.
The New York-based company said it spent about 30 percent more on marketing in the three months ending in September, compared with a year earlier, targeting events including its 50th Anniversary Fashion Show at New York Fashion Week.
Its revenue from North America rebounded, rising 1.4 percent after several quarters of declines.
Revenue overall rose 1.6 percent to $1.69 billion, better than analyst expectations of a 0.9 percent fall.
Net income rose to $170.3 million or $2.07 per share in the second quarter ending on September 29, from $143.8 million or $1.75 per share a year earlier.
Excluding one-time items, Ralph Lauren earned $2.26 per share, exceeding Wall Street estimates for the ninth consecutive quarter.
Analysts on average had expected earnings of $2.16 per share and revenue of $1.65 billion, according to IBES data from Refinitiv.
By Uday Sampath; editor: Sai Sachin Ravikumar.