Ralph Lauren’s e-commerce sales jump 16% in Q4
May 19, 2015 04:15 PM
Apparel brand Ralph Lauren Corp. drove a 16% year-over-year increase in e-commerce sales in the fiscal fourth quarter and a 14% jump for the full year, results that were offset by declines in store sales, according to its annual report.
Though Ralph Lauren does not break out e-commerce sales figures, Internet Retailer estimates Ralph Lauren drove $780.0 million in online sales in its previous fiscal year. Based on this figure and Ralph Lauren’s disclosure of a 14% increase for fiscal 2015, which ended March 28, that would amount to approximately $890 in e-commerce revenue for the year.
Ralph Lauren, ranked No. 59 in the Internet Retailer 2015 Top 500 Guide, says it enhanced site search functionality during the quarter, which drove increased conversions.
Also, website traffic was up across all e-commerce properties, including RalphLauren.com and ClubMonaco.com in the U.S. “Traffic to our website in all regions increased significantly, including a 48% increase in mobile traffic in North America,” Jackwyn Nemerov, president and chief operating officer, told analysts on the retailer’s conference call.
The merchant is building a new e-commerce platform in-house that will power its global online stores, and this is set to be completed in fiscal 2018. “We are on track with the design and architecture of our new e-commerce platform and are confident its capabilities will enable us to achieve our goal of $1 billion in sales in this channel,” Nemerov told analysts.
In addition to its two e-commerce sites in the U.S., the retailer operates ClubMonaco.ca for Canadian online shoppers; RalphLauren.co.uk servicing the United Kingdom; RalphLauren.de and RalphLauren.fr for Germany and France, respectively, and other European shoppers; RalphLauren.co.jp servicing Japan; RalphLauren.co.kr for South Korean consumers; RalphLauren.asia for Hong Kong, Macau, Malaysia and Singapore; and RalphLauren.com.au for Australia and New Zealand.
Ralph Lauren does not break out e-commerce sales figures, but last week reported to the U.S. Securities and Exchange Commission the following for the fourth quarter ended March 28:
- Net sales of $1.85 billion, a 1.1% increase compared with $1.83 billion in the fourth quarter of the prior year.
- Retail sales of $841 million, a 0.5% decline from $845 million.
- Comparable-store sales declined 4%. On a constant currency basis, which accounts for the strengthening of the dollar versus other major currencies in the past year, comparable sales were up 1% in the quarter.
For the fiscal year ended March 28, Ralph Lauren also reported:
- Net sales of $7.45 billion, up 2.3% from $7.28 billion in the prior fiscal year.
- Retail sales of $3.96 billion, a 4.2% increase from $3.80 billion.
- Comparable-store sales declined 1%. On a constant currency basis, or factoring in the strength of the U.S. dollar, comparable-store sales increased 1% for the year.