- Ralph Lauren Corp RL reported second-quarter FY23 sales growth of 5% year-on-year to $1.58 billion, beating the consensus of $1.56 billion.
- Revenue in North America increased 3% to $727 million, Europe remained flat at $494 million, and Asia grew 17% to $316 million.
- The gross profit climbed 0.8% to $1 billion with a gross margin of 64.8%. Adjusted gross margin was 64.6%, 270 basis points below the prior year on a reported basis, and down 80 basis points in constant currency.
- Operating margin was 13.1%, and operating income for the quarter declined 17.9% to $206.7 million. Adjusted operating margin was 13.4%, 370 basis points below the prior year.
- The company held $1.4 billion in cash and equivalents as of October 1, 2022. Cash provided by operating activities for six months totaled $1.9 million.
- Inventory at the end of the quarter rose 36% to $1.3 billion.
- Adjusted EPS of $2.18 beat the analyst consensus of $2.08.
- Outlook: Ralph Lauren continues to expect FY23 constant currency revenues to increase 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 Q3, the company expects revenue to increase low- to mid-single digits in constant currency to last year.
- Price Action: RL shares are trading higher by 5.21% at $94.94 on the last check Thursday.
- Photo Via Wikimedia Commons
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