Loading...
•
Sep 30, 2023
Ralph Lauren Q2 2024 Earnings Report
Ralph Lauren's Q2 2024 earnings exceeded expectations, driven by growth in Asia and strong direct-to-consumer sales.
Key Takeaways
Ralph Lauren reported a 3% increase in revenue to $1.6 billion, with Asia leading the growth. The company's direct-to-consumer comparable store sales grew by 6%, driven by retail comps across all regions and channels. EPS was reported at $2.19 and adjusted EPS at $2.10. The company reiterated its full-year fiscal 2024 outlook of low-single-digit revenue growth.
Revenue increased by 3% on a reported basis and 2% in constant currency, led by momentum in Asia.
Global direct-to-consumer comparable store sales grew by 6%, driven by positive retail comps across all regions and channels with 10% AUR growth.
Gross and operating margins were above expectations, with brand elevation and expense discipline offsetting product cost headwinds.
Global inventories decreased by 5% compared to the prior year, positioning the company well for the holiday season.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects low-single-digit revenue growth for fiscal year 2024, centering around 1% to 2% in constant currency. Operating margin is expected to expand by approximately 30 to 50 basis points in constant currency to 12.3% to 12.5%, driven by gross margin expansion.
Positive Outlook
- Revenue to increase approximately low-single digits to last year on a constant currency basis, centering around 1% to 2%.
- Operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency to 12.3% to 12.5%, driven by gross margin expansion.
- Gross margin is now expected to increase approximately 120 to 170 basis points in constant currency.
- For the third quarter, the Company expects revenue to be up approximately 1% to 2% to last year in constant currency.
- Constant currency gross margin expansion of approximately 100 to 150 basis points.
Challenges Ahead
- Foreign currency is now expected to negatively impact revenue growth by approximately 50 basis points in Fiscal 2024.
- Foreign currency is expected to negatively impact operating margin by about 10 basis points in Fiscal 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...