Ralph Lauren Corporation (RL) reported better-than-expected financial results for its first fiscal 2016 quarter earlier this week, three months after announcing a major global brand management structure.
Despite declining by five percent on a reported basis, net revenues of $1.6 billion were in line with the prior year period on a constant currency basis, driven by double-digit international growth, new store openings and global e-commerce expansion. Wholesale segment sales declined six percent on a constant currency basis, negatively impacted by retail customers’ receipt plans due to an earlier Easter this year which was partially offset by double-digit constant currency growth in Europe. Reported wholesale segment sales declined nine percent to $642 million. Retail sales increased three percent on a constant currency basis in the first quarter over the prior year period, driven by contribution from new stores and e-commerce expansion. Reported retail sales declined three percent, negatively impacted by foreign currency movements. Consolidated comparable store sales decreased two percent on a constant currency basis and eight percent on a reported basis.
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