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.
The company also plans to expand its local workforce and undertake a third expansion of its Shanghai headquarters.
Coach parent Tapestry similarly benefited from strong demand in China.
The US fashion group reported fiscal first-quarter global revenue of $1.89 billion, up 11 percent from a year earlier, with its flagship Coach brand posting 16 percent growth.
Revenue in China jumped 43 percent to $385 million, or 39 percent on a constant-currency basis, significantly outpacing the group's overall growth.
The results underscore the effectiveness of Coach's strategy of combining product innovation, stronger brand positioning and efforts to engage younger consumers.
Coach's average handbag retail unit price increased at a low double-digit rate, while unit sales also grew at a low single-digit pace, suggesting consumers continued buying despite higher prices.
Tapestry added about 2.6 million new customers globally during the quarter, with Generation Z accounting for about 35 percent.
The group's gross margin expanded 2.3 percentage points to 78.6 percent, while operating margin reached 22.4 percent.
Canada Goose also reported strong demand in China, even as its European business faced pressure.
The Canadian outerwear maker said its China revenue rose 32.5 percent to 68.5 million Canadian dollars ($48.2 million) in its fiscal second quarter ended Sept 27, equivalent to 28.2 percent growth on a constant-currency basis.
By comparison, revenue in Europe, the Middle East and Africa declined 13.9 percent on a constant-currency basis, reflecting weaker luxury demand and temporary supply disruptions related to logistics adjustments.
The company reported double-digit growth in categories including apparel, rainwear and windproof jackets, highlighting efforts to diversify beyond its traditional winter outerwear business.
wangzhuoqiong@chinadaily.com.cn
