Revenue in North America increased 6% to $701 million, Europe rose 17% to $416 million, and Asia grew 16% to $334 million.
The gross profit climbed 3.4% to $1 billion with a gross margin of 67.2%. Adjusted gross margin was 68.0%, 180 basis points below the prior year on a reported basis, and down 80 basis points in constant currency.
Operating margin was 11.8%, and operating income for the quarter declined 20.5% to $175 million. Adjusted operating margin was 12.7%, 410 basis points below the prior year.
The company held $1.8 billion in cash and equivalents as of July 2, 2022. Cash provided by operating activities for the quarter totaled $45.3 million versus $247.6 million a year ago.
Inventory at the end of the quarter rose 47% to $1.2 billion., reflecting higher increases in goods-in-transit to mitigate global supply chain delays and meet strong consumer demand along with continued elevation in product mix.
Adjusted EPS of $1.88 beat the analyst consensus of $1.75.
Outlook: Ralph Lauren continues to expect FY23 constant currency revenues to increase approximately high single digits to last year on a 52-week comparable basis, with an outlook centered around 8%.
For Q2, the company expects revenue growth to be in a range centered around 11% in constant currency.
Price Action: RL shares are trading lower by 6.67% at $94.41 on the last check Tuesday.
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