SHANGHAI: Lifestyle brands including Ralph Lauren, Coach and Canada Goose have reported double-digit sales growth in China in their latest quarters, signalling robust demand for selected premium labels in the market.
The results suggest that Chinese consumers remain willing to spend on brands offering distinctive products, recognisable styles and compelling value, despite a challenging environment for the global luxury sector.
Ralph Lauren reported revenue growth of more than 35% in China in its fiscal second quarter ended Sept 26, extending its streak of positive growth in the market to 24 consecutive quarters.
The performance followed a 40% increase in revenue in the preceding quarter, making the country one of the US fashion company’s fastest-growing markets.
The company reported quarterly net income of approximately US$297mil, while gross margin reached 74.2%, benefiting partly from a one-time tariff refund.
The company is stepping up investment in the country as it seeks to capitalise on growing demand for its classic lifestyle offerings. The company operates more than 250 stores across 40 Chinese cities and plans to open 150 additional stores across the Asia-Pacific region over the next three years, with China at the centre of its expansion strategy.
Shin Hwee Chua, chief executive officer of Ralph Lauren Asia-Pacific, said its participation at the International Import Expo in Shanghai marked “an important milestone in deepening our connection with the Chinese market”. — China Daily/ANN
