(Bloomberg) -- Ralph Lauren Corp. shares rallied after third-quarter results topped estimates on the back of higher prices.

Revenue rose 6% in the period ended Dec. 30, led by a strong rebound in China, the company said Thursday in a statement. The retailer raised the average price of its items by 9% in the holiday quarter, on top of a 10% boost last year.

Ralph Lauren’s new customers and price increases are “stoking our optimism that it can surpass expectations for 2024,” Bloomberg Intelligence analyst Mary Ross Gilbert wrote in a research note.

The company boosted its revenue forecast for the remainder of the year. Chief Executive Officer Patrice Louvet has been focused on growing sales in Ralph Lauren’s own stores and on its website, decreasing its reliance on department stores, which have had a choppy few years. He’s been able to raise average prices by increasing the cost of items sold to consumers, cutting discounts, and selling a greater portion of more expensive merchandise such as jackets and furniture.

The shares jumped as much as 13% in New York trading, their biggest gain in three years and touching the highest levels since February 2015. The stock has risen 42% in the past 12 months, outperforming a 23% gain in the S&P 500 Consumer Discretionary Index.

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