Ralph Lauren Corp. reiterated its commitment to expanding the luxury accessories business, including handbags and fine-jewelry and watches. The company stated that accessories business is the future growth opportunity, especially across Asia. Ralph Lauren reported that profit fell 10.5% year on year to $162 million in the first quarter that ended on June 28; however, revenue increased 3% to $1.7 billion.
The company plans to open a Ralph Lauren luxury flagship store in China in the third quarter. It anticipates global sales growth of between 6% and 8% this fiscal year, while the operating margin is reduced by 75 to 125 basis points due to continued investment in global retail development and infrastructure, in addition to increased advertising and marketing expense.