Ralph Lauren weighed down by sluggish store sales

Sales in North America decline despite increase in marketing for 50th anniversary

Ralph Lauren Corp. increased marketing spending 30% in the second quarter to celebrate its 50th anniversary. Unfortunately for the fashion house, the hype hasn’t translated to spending in stores.

Overall revenue rose 1.6% to $1.7 billion (U.S.) for the three months to Sept. 29, and digital revenue was up 9%. But in North America same-store sales in brick-and-mortar stores declined 1%.

The company’s shares fell more than 7% to $126.85 in morning trading. The stock is up more than 18% this year.

Neil Saunders, managing director of GlobalData Retail, called the sales results “anemic” and said they reflect “a brand that is still not entirely confident about its place in the fashion world or its future direction.”

Ralph Lauren has been repositioning itself to appeal to younger shoppers. Last month, it announced a partnership with London streetwear brand Palace for a capsule collection aimed at winning over millennials.

It has been upgrading core products like blazers and military jackets with embellishments and other new details. And it has been making a big push on social media.

Ralph Lauren Chief Executive Patrice Louvet said the moves were starting to deliver results. He said online searches for the “Ralph Lauren” brand were up considerably, according to Goo- gle Analytics. The company said net income rose to $170 million, compared with $144 million a year ago, driven by fewer promotions and higher prices.

Mr. Louvet also said the company was continuing discussions with Amazon.com Inc. about expanding the types of products it sells on its website. Ralph Lauren sells mainly shoes on Amazon. Mr. Louvet said it would consider making more products available if Amazon would guard against counterfeiters and help protect its brand image.

He added that Ralph Lauren has begun selling to other online players, including Stitch Fix.

Asked by an analyst when brick-and-mortar sales would begin growing again, Mr. Louvet said the company was taking the right steps.

He said it is about finding the right balance between basic and fashion products and making sure “our marketing is connecting with a new generation of consumers.”