Ralph Lauren's Retreat From Discounting Helps Bolster Profit
- But the move to eschew markdowns is taking a toll on sales
- Company sees $500 million Greater China sales in five years
Photographer: Chris Ratcliffe/Bloomberg
Ralph Lauren Corp., the 50-year-old fashion brand known for its preppy style, is making good on its effort to rely less on markdowns -- even if it means selling fewer clothes.
The company posted earnings of $1.99 a share last quarter, topping analysts’ average projection by a dime. Ralph Lauren credited its pursuit of higher-quality sales channels and fewer discounts. Still, the push is taking a toll on revenue, which fell 9 percent in the period.