Ralph Lauren CEO Patrice Louvet told CNBC’s Jim Cramer on Thursday that even though the company didn’t raise its full-year guidance in its fiscal first-quarter earnings report, he feels optimistic about the future and has faith in the brand’s core consumer.
Ralph Lauren saw revenue come in at $1.5 billion, topping the $1.48 billion consensus estimate, according to Refinitiv. However, the company failed to raise its full-year guidance, and its stock was off nearly 5% Thursday.
“Frankly, I think it’s important to look beyond one quarter,” Louvet said. “There is a lot of volatility right now, there’s a lot of uncertainty across the channels. What we feel really good about is our core consumer, which, you know, is a more elevated consumer, is resilient.”
He added that consumers are shifting their wardrobe out of the Covid era and into a more “sophisticated casual” style, adding the retailer is well positioned for this shift as it’s known for chinos, dresses, oxford shirts and other similar fashions.
Louvet stressed that Ralph Lauren is also focusing on high exposure and brand visibility, touting the celebrities that have appeared in its clothing such as Jennifer Lopez, Beyoncé, Ariana Grande, David Beckham and Jill Biden.
“I think it’s all about desirability in this space, right?” Louvet said. “That is the key operating word in the industry.”
