Ralph Lauren’s latest quarterly report

Ralph Lauren Corp., an American luxury goods group, released financial data for the second quarter of fiscal year 2018/2019. Driven by double-digit growth in Asia and slow growth in North American and European markets, the group’s net profit grew 18% year-on-year in the quarter.

Rising tariffs and shortage of truck drivers have increased transport costs, affecting major consumer goods companies. Many companies, including Ralph Lauren, have chosen to reduce discounts to ensure profit margins. To control costs, Ralph Lauren reduced air freight usage, resulting in a 15% increase in inventory levels in the quarter. The group hopes to boost sales through new stores and electricity business in the future.

Ralph Lauren Group is trying to reverse the decline in North American market performance over the past year, and the previous social media marketing strategy is working. With the decline of discount promotions, the group lost some of its customers, and the social media strategy aims to attract more high-spending millennial consumers. In the quarter, the group’s marketing investment was 30% higher than that of the same period last year, mainly for the 50th Anniversary Fashion Show and New York Fashion Week.