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Apr 01, 2023
Ralph Lauren Q4 2023 Earnings Report
Ralph Lauren exceeded expectations in Q4 2023, driven by strong growth in Asia and Europe, and brand elevation.
Key Takeaways
Ralph Lauren reported a 1% increase in revenue to $1.5 billion in the fourth quarter of Fiscal 2023. Earnings per diluted share were $0.48 on a reported basis and $0.90 on an adjusted basis. The company's performance was driven by strong growth in Asia and Europe, and continued brand elevation.
Revenue increased by 1% on a reported basis and 9% in constant currency.
Global Direct-to-Consumer comparable store sales grew 6%, driven by double-digit AUR growth.
Operating margin expanded, and operating profit grew despite cost and foreign currency headwinds.
The company returned $653 million to shareholders through dividends and share repurchases in Fiscal 2023.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company expects revenues to increase approximately low-single digits to last year on a constant currency basis. The Company expects operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency, driven by gross margin expansion.
Positive Outlook
- Revenues to increase approximately low-single digits on a constant currency basis.
- Operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency.
- Gross margin expansion is expected to increase about 50 to 100 basis points in constant currency.
- Stronger AUR.
- Reduced freight costs.
Challenges Ahead
- Inflationary pressures.
- Consumer spending-related headwinds.
- Foreign currency volatility.
- The war in Ukraine.
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
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