RL - Ralph Lauren rallies after reporting strong growth across all regions
Ralph Lauren Corporation ( RL ) topped consensus marks with its FQ1 earnings report.
Revenue was up 13% on a constant currency basis with strong growth seen across all regions.
Adjusted gross margin was down 180 basis points to 68.0% of sales, with better pricing and promotions more than offset by increased freight headwinds to mitigate global supply chain delays. Operating margin fell 10 bps to 12.7% of sales during the quarter.
Ralph Lauren ( RL ) ended the first quarter of FY23 with $1.8B in cash and $1.1B in total debt. Inventory was up 47% at the end of the quarter due to higher increases in goods-in-transit as part of RL's efforts to mitigate global supply chain delays and meet strong consumer demand along with continued elevation in product mix.
CEO update: "While the global operating environment remains as volatile as ever, our talented, passionate teams are delivering on the multiple growth opportunities to scale our business with creativity and discipline — from driving high-quality new consumer recruitment to expanding digital and elevating our touch points in every region and channel."
Looking ahead, Ralph Lauren ( RL ) backed guidance for high single-digit growth in FY23 and expects adjusted operating margin of 14.0% to 14.5% in constant currency. RL continues to plan capital expenditures for FY23 of approximately $290M to $310M.
Shares of Ralph Lauren ( RL ) rose 2.07% in premarket trading to $103.27 following the earnings topper.
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Ralph Lauren rallies after reporting strong growth across all regions