U.S. Markets closed
  • S&P Futures

    3,607.25
    +5.75 (+0.16%)
     
  • Dow Futures

    28,891.00
    +90.00 (+0.31%)
     
  • Nasdaq Futures

    11,016.75
    -18.75 (-0.17%)
     
  • Russell 2000 Futures

    1,674.50
    +4.70 (+0.28%)
     
  • Crude Oil

    82.09
    +2.60 (+3.27%)
     
  • Gold

    1,672.10
    +0.10 (+0.01%)
     
  • Silver

    19.10
    +0.07 (+0.35%)
     
  • EUR/USD

    0.9804
    -0.0015 (-0.1569%)
     
  • 10-Yr Bond

    3.8040
    +0.0570 (+1.52%)
     
  • Vix

    31.62
    -0.22 (-0.69%)
     
  • GBP/USD

    1.1155
    +0.0032 (+0.2833%)
     
  • USD/JPY

    144.7530
    +0.3100 (+0.2146%)
     
  • BTC-USD

    19,209.26
    -114.88 (-0.59%)
     
  • CMC Crypto 200

    443.49
    +0.06 (+0.01%)
     
  • FTSE 100

    6,893.81
    +12.22 (+0.18%)
     
  • Nikkei 225

    25,937.21
    -484.89 (-1.84%)
     

Ralph Lauren's Q1 Highlights: Earnings Beat, Margin Pressure, Higher Inventory & More

·2 min read
  • Ralph Lauren Corp (NYSE: RL) reported first-quarter FY23 sales growth of 8% year-on-year, to $1.49 billion, beating the consensus of $1.41 billion.

  • 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.

  • Photo Via Wikimedia Commons

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.