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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.
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 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.
- Foreign currency is still expected to negatively impact gross margins by approximately 30 basis points in Fiscal 2024.
- Operating margin for the third quarter is expected to be roughly flat in constant currency.
- Foreign currency is expected to negatively impact gross margin by approximately 20 basis points in the third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income