Ralph Lauren Q1 2022 Earnings Report
Key Takeaways
Ralph Lauren reported strong first-quarter fiscal 2022 results, with revenues increasing by 182% to $1.4 billion. The company's global digital ecosystem experienced substantial growth, and operating margin reached its highest level since fiscal 2014. As a result, the full-year fiscal 2022 outlook was raised.
Revenues increased 182% to $1.4 billion, exceeding expectations, driven by growth in North America and Europe.
Global digital ecosystem accelerated with more than 80% growth.
Average unit retail (AUR) increased by 17%, driven by brand elevation and strong full-priced selling.
Adjusted operating margin reached 16.8%, the highest for the first quarter since fiscal 2014.
Ralph Lauren
Ralph Lauren
Ralph Lauren Revenue by Segment
Forward Guidance
The Company expects constant currency revenues to increase approximately 25% to 30% to last year on a 53-week reported basis and operating margin for Fiscal 2022 of about 12.0% to 12.5%.
Positive Outlook
- Constant currency revenues are expected to increase approximately 25% to 30%.
- Foreign currency is expected to positively impact revenue growth by approximately 30 basis points.
- Operating margin is expected to be in the range of 12.0% to 12.5%.
- Gross margin is now expected to increase 50 to 70 basis points to last year.
- Revenues are expected to increase approximately 20% to 22% in constant currency to last year for second quarter Fiscal 2022.
Challenges Ahead
- Ongoing uncertainty and evolving situation surrounding COVID-19.
- Potential for further outbreaks or resurgences of the pandemic across various markets.
- Potential global supply chain disruptions.
- The full year Fiscal 2022 tax rate is now expected to be approximately 24%, assuming a continuation of current tax laws.
- Second quarter Fiscal 2022 tax rate is expected to be approximately 24% to 25%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income