Luxury goods group Polo Ralph Lauren has surpassed expectations, reporting a 21 percent rise in third quarter earnings, thanks to strong European demand for its fashion lines. Net income for the quarter rose from $75 million (£43 million) last year to $90.7 million. Net sales rose 10 percent to $995 million. The first nine months of fiscal 2006 saw net income rise to $246 million compared with $167 million the year before, as revenues climbed 15 percent to $2.78 billion.
“This is an exciting time for our company as we continue to introduce new product categories and take more direct control of our brand,” said chairman and chief executive Ralph Lauren. “The Ralph Lauren brand has never been stronger as the demand for our luxury products around the world is accelerating. We look forward to launching our footwear line this year and developing our denim business now that we have bought back Polo Jeans.”
The group completed the purchase of its Polo Jeans business on 3 February. “We remain committed to opening new retail stores around the world and are excited about our newest flagship store opening in Tokyo next month,” Lauren continued. “We believe the sound fundamentals of our business will allow us to take advantage of the growing global appeal of the Ralph Lauren brand.”