Lifestyle brands ride China boom

Detailed summary

Lifestyle brands including Ralph Lauren, Coach and Canada Goose reported double-digit sales growth in China in their latest quarters, signaling robust demand for selected premium…

Lifestyle brands including Ralph Lauren, Coach and Canada Goose reported double-digit sales growth in China in their latest quarters, signaling robust demand for selected premium labels in the market.

The results suggest that Chinese consumers remain willing to spend on brands offering distinctive products, recognizable styles and compelling value, despite a challenging environment for the global luxury sector.

Ralph Lauren reported revenue growth of more than 35 percent in China in its fiscal second quarter ended Sept 26, extending its streak of positive growth in the market to 24 consecutive quarters.

The performance followed a 40 percent increase in revenue in the preceding quarter, making the country one of the US fashion company's fastest-growing markets.

The company reported quarterly net income of approximately $297 million, while gross margin reached 74.2 percent, benefiting partly from a one-time tariff refund.

The company is stepping up investment in the country as it seeks to capitalize on growing demand for its classic lifestyle offerings.

The company currently operates more than 250 stores across over 40 Chinese cities and plans to open 150 additional stores across the Asia-Pacific region over the next three years, with China at the center of its expansion strategy, according to the company.

Citing Ralph Lauren's first time exhibiting at the China International Import Expo in Shanghai, Shin Hwee Chua, CEO of Ralph Lauren Asia-Pacific, said during the expo that the participation marked "another important milestone in deepening our connection with the Chinese market".

Chua said Chinese consumers increasingly seek products that combine quality and timeless design with cultural relevance and lifestyle experiences.

Opening of the article, excerpted from China Daily. To read the rest, open the article on the publisher's site.