Ralph Lauren forecasts upbeat annual revenue on strong demand By Reuters


© Reuters. FILE PHOTO: A man walks past Ralph Lauren Corp.’s flagship Polo store on Fifth Avenue in New York City, U.S., April 4, 2017. REUTERS/Brendan McDermid

(Reuters) – Ralph Lauren Corp (NYSE:) forecast full-year revenue above estimates on Tuesday, as demand for its affordable luxury goods from the affluent in the United States and Europe stays strong.

Shares of the New York-based company rose 1% in premarket trading. They have fallen 23% this year.

The spending power of higher-income consumers has stayed unaffected by higher prices of essentials, and they are now spending more on fashion as they attend more social events with a broader easing of COVID-19 restrictions across the globe.

The company forecast fiscal 2023 revenue to increase in high single digits on a constant currency basis, compared with Wall Street’s expectation of an increase of 3.6%, according to IBES data from Refinitiv.

The 55-year-old apparel and footwear brand’s net revenue rose 18% to $1.52 billion in the fourth quarter. Analysts polled by Refinitiv, on average, had expected revenue of $1.46 billion.

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