- Ralph Lauren Cor RL reported third-quarter FY23 sales growth of 1% year-on-year to $1.83 billion, beating the analyst consensus estimate of $1.76 billion.
- Revenue in North America increased by 1% to $938 million, Europe rose by 1% to $469 million, and Asia grew by 1% to $386 million.
- The gross profit remained flat at $1.2 billion with a gross margin of 65%. Adjusted gross margin was 65.2%, 80 basis points below the prior year on a reported basis, but up 80 basis points in constant currency.
- The operating margin was 15.4%, and operating income for the quarter declined by 2.4% to $282 million. The adjusted operating margin was 16%, 10 basis points above the prior year.
- The company held $1.6 billion in cash and equivalents as of December 31, 2022. Cash provided by operating activities for nine months totaled $397 million.
- Inventory at the end of the quarter rose 33% to $1.2 billion.
- Adjusted EPS of $3.35 beat the analyst consensus of $2.92.
- Outlook: Ralph Lauren continues to expect FY23 constant currency revenues to increase by approximately high-single digits to last year, or about 8%, on a 52-week comparable basis.
- On a 53-week comparable basis, it expects FY23 revenue growth to be negatively impacted by approximately 100 basis points due to the absence of the 53rd week compared to the prior year.
- For Q4, the company expects revenue to increase mid- to high-single digits in constant currency to last year.
- Price Action: RL shares are trading higher by 1.82% at $119.21 on the last check Thursday.
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