Why Ralph Lauren (RL) Shares Are Gaining Today - Ralph Lauren (NYSE:RL)

Ralph Lauren Corp RL reported fourth-quarter FY23 sales growth of 1% year-on-year to $1.54 billion, beating the consensus of $1.47 billion.
Global Direct-to-Consumer Comparable Store Sales grew 6%.
Revenue in North America decreased by 3% to $656 million, Europe slipped by 1% to $461 million, and Asia grew by 13% to $390 million.
Gross profit declined to $951 million, with a gross margin of 61.7%. Adjusted gross margin was 63%.
The operating margin was 2.6%, and operating income for the quarter increased by 9.2% to $40 million. The adjusted operating margin was 6.1%, 390 basis points above the prior year.
The company held $1.6 billion in cash and equivalents as of Apr 1, 2023. Operating cash flow for the year totaled $411 million.
Adjusted EPS of $0.90 beat the analyst consensus of $0.61.
Outlook: Ralph Lauren expects FY24 revenues to increase approximately low-single digits on a constant currency basis.
It expects FY24 operating margin to expand 30-50 basis points in constant currency, driven by gross margin expansion.
For Q1, the company expects revenue to be flat to up slightly to last year on a constant currency basis.
Price Action: RL shares are trading higher by 7.4% at $116.26 on the last check Thursday.

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Why Ralph Lauren Shares Are Gaining Today