- Ralph Lauren Corp RL reported first-quarter FY22 revenue growth of 182% year-on-year, to $1.38 billion, beating the analyst consensus of $1.21 billion.
- Revenues from North America increased 301% Y/Y to $662 million, Europe rose 194% to $355 million, and Asia grew 68% to $288 million.
- Comparable store sales increased 108%.
- Gross profit improved to $968 million, and gross margin was 70.3%. Adjusted gross margin contracted 200 basis points to 69.8% on a reported basis and down 260 basis points in constant currency.
- Adjusted operating expenses were $729 million, up 39% Y/Y.
- The operating margin was 16%, and operating income for the quarter was $220.6 million. Adjusted operating income was $231 million, and operating margin expanded 5,250 basis points to 16.8%.
- Inventories rose 3.9% Y/Y to $803 million.
- Net cash provided by operating activities for the quarter amounted to $247.6 million. The company held $2.6 billion in cash and equivalents as of June 26, 2021.
- EPS of $2.29 beat the analyst consensus of $0.86.
- "Against the backdrop of stronger than expected re-openings across North America and Europe, our teams delivered exceptional performance this quarter," said CEO Patrice Louvet.
- Outlook: Ralph sees Q2 constant currency revenue growth of 20% - 22%, operating margin of 13.0%-14.0%, and gross margin to be flat to up 20 basis points.
- For FY22, it sees constant currency revenue growth of 25% - 30% and an operating margin of 12.0%-12.5%. It sees gross margin increase 50-70 basis points (prior view of 40-60 basis point decline).
- Price action: RL shares are trading higher by 9.43% at $129.12 on the last check Tuesday.
- Photo by Jeannette Mijares from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
