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Jul 02, 2022
Ralph Lauren Q1 2023 Earnings Report
Ralph Lauren reported Q1 2023 earnings with revenue growth and adjusted operating margin exceeding expectations.
Key Takeaways
Ralph Lauren's Q1 2023 results showed strong revenue growth, driven by performance across all regions and comparable store sales. The adjusted operating margin exceeded expectations due to operating expense discipline. The company reiterated its full-year fiscal 2023 outlook.
Delivered First Quarter Revenue Growth of 8% on a Reported Basis and 13% on a Constant Currency Basis.
First Quarter Adjusted Operating Margin of 12.7% Exceeded Outlook.
Drove Investments in Key Strategic Priorities and Returned Cash to Shareholders.
Reiterated Full Year Fiscal 2023 Outlook of High-Single Digit Net Revenue Growth and Adjusted Operating Margin of Approximately 14.0% to 14.5%.
Ralph Lauren
Ralph Lauren
Ralph Lauren Revenue by Segment
Ralph Lauren Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
The Company expects constant currency revenues to increase approximately high single digits. Operating margin for the second quarter is expected to be in a range of 15.4% to 15.7% in constant currency.
Positive Outlook
- Company continues to expect constant currency revenues to increase approximately high single digits to last year on a 52-week comparable basis, with our outlook centered around 8%.
- The Company continues to expect operating margin for Fiscal 2023 in a range of approximately 14.0% to 14.5% in constant currency.
- Gross margin is still expected to increase approximately 30 to 50 basis points in constant currency on a 52-week comparable basis, with stronger AUR and favorable product mix more than offsetting higher freight and product cost inflation.
Challenges Ahead
- Based on current exchange rates, foreign currency is now expected to negatively impact revenue growth by approximately 600 basis points in Fiscal 2023.
- On a 53-week comparable basis, Fiscal 2023 revenue growth is still expected to be negatively impacted by approximately 100 basis points due to the absence of the 53rd week compared to the prior year.
- Foreign currency is now expected to negatively impact operating margin by approximately 180 basis points in Fiscal 2023.
- Foreign currency is expected to negatively impact gross margins by approximately 150 basis points in Fiscal 2023.
- Foreign currency is expected to negatively impact second quarter operating margin by approximately 240 basis points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income