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Mar 27, 2021
Ralph Lauren Q4 2021 Earnings Report
Ralph Lauren's Q4 2021 results exceeded expectations with revenue growth and improved margins.
Key Takeaways
Ralph Lauren reported a 1% increase in revenue to $1.29 billion for the fourth quarter of fiscal year 2021, with positive growth in Asia and Europe. The company's global digital commerce sales accelerated to 52%. Reported EPS was ($1.01), while adjusted EPS was $0.38.
Revenues increased 1% to $1.29 billion, exceeding expectations with positive growth in Asia and Europe.
Global digital commerce sales accelerated to 52%, driven by all regions.
Gross and operating margins improved due to a 30% increase in average unit retail and expense reductions.
Strategic Realignment Plan announced with anticipated sale of Club Monaco.
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 20% to 25% to last year on a 52-week comparable basis. The 53rd week is expected to contribute approximately 140 basis points to revenue growth. Foreign currency is expected to negatively impact revenue growth by approximately 50 to 70 basis points in Fiscal 2022. The Company expects operating margin for Fiscal 2022 of about 11.0%, an increase of approximately 620 basis points on a reported basis.
Positive Outlook
- Constant currency revenues are expected to increase approximately 20% to 25%.
- The 53rd week is expected to contribute approximately 140 basis points to revenue growth.
- Operating margin for Fiscal 2022 is expected to be about 11.0%, an increase of approximately 620 basis points on a reported basis.
- Operating margin expansion is expected to be driven by operating expense leverage.
- First quarter revenues are expected to increase approximately 140% to 150% in constant currency to last year.
Challenges Ahead
- Foreign currency is expected to negatively impact revenue growth by approximately 50 to 70 basis points in Fiscal 2022.
- Gross margin is expected to be down 40 to 60 basis points as mix normalizes.
- Gross margin is expected to contract approximately 575 basis points to last year as the Company laps unusual COVID-related mix benefits from the prior year, when the majority of our stores across North America and Europe were closed.
- The Company continues to note the ongoing uncertainty and evolving situation surrounding COVID-19 impacting the timing and path of recovery in each market, including the potential for further resurgences of the pandemic across various markets.
- The Company's current outlook could be negatively impacted if government-mandated lockdowns or restrictions are extended or more severe measures are applied.
Revenue & Expenses
Visualization of income flow from segment revenue to net income