(Reuters) -Ralph Lauren reported a surprise rise in quarterly revenue on Thursday, as demand for its high-end sweaters, shirts and outdoor clothing saw a strong rebound in China, offsetting a slowdown in luxury spending in the United States.
Luxury brands have seen a pick-up in China demand as the market reopens from COVID-19 curbs, propping up sales at several high-end labels at a time when U.S. demand has cooled.
While China only accounts for 6% of Ralph Lauren’s revenue, according to research firm Jane Hali & Associates, the company saw sales in the market jump more than 50% in the first quarter, pulling Asia region revenues up 13% to $378 million.
However, the company forecast second-quarter revenues to be flat to slightly up year over year, compared to analysts’ estimate for a 3.3% rise, sending shares down 3% in premarket trading.
Net revenue rose to $1.50 billion in the first quarter, from $1.49 billion a year earlier. Analysts on average had expected a marginal drop to $1.48 billion, according to Refinitiv data.
(Reporting by Deborah Sophia in Bengaluru; Editing by Milla Nissi)
