Ralph Lauren beats quarterly sales estimates on steady demand

Ralph Lauren beat Wall Street estimates for quarterly revenue on Wednesday as its younger, wealthier customer base continued to snap up its pricey shirts and sweaters in the U.S., signaling steady demand ahead of the key holiday season.

Shares of the company rose 6% before the bell.

Ralph Lauren’s cable-knit jumpers, Polo shirts and dresses have continued to pull shoppers even as the wider luxury industry sees a slowdown in the United States.

The company has leaned on its website and physical stores to drive demand, strengthening its direct-to-consumer business, at a time when several global brands are seeing weaker wholesale revenues as retailers, cautious about the holiday season, order fewer products.

Net revenue rose to $1.63 billion in the fiscal second quarter from $1.58 billion a year earlier, compared with analysts’ average forecast for a slight increase to $1.61 billion, according to LSEG data.

The company maintained its annual sales forecast, but projected third-quarter revenue to be up roughly 1% to 2%, below analysts’ average estimate for a 3.8% rise to $1.90 billion.