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Ralph Lauren Q1 revenue up 8 percent, beating estimates

By Huw Hughes

Aug 9, 2022

Management

Image: Ralph Lauren

Ralph Lauren beat revenue expectations in the first quarter of the year.

The US fashion brand reported net revenue of 1.5 billion dollars, an increase of 8 percent compared to the previous year, or 13 percent on a constant currency basis.

Breaking it down by geography, revenue in Ralph Lauren’s home market of North America was up 6 percent to 701 million dollars.

Meanwhile, revenue in Europe was up 17 percent to 416 million dollars, and revenue in Asia was up 16 percent to 334 million dollars.

The US fashion giant made a net income of 123 million dollars, or 1.73 dollars per diluted share, down from 135 million dollars, or 1.88 dollars per diluted share, the prior year.

Full-year outlook

Looking ahead, Ralph Lauren now expects constant currency revenues to increase by approximately high single digits on a 52-week comparable basis, or by about 8 percent.

It expects operating margin in the range of approximately 14 percent to 14.5 percent in constant currency.

Ralph Lauren chief executive Patrice Louvet told investors: “Our strong first quarter performance underscores the power of our brand and momentum of our strategy around the world, following our significant multi-year reset.

“While the global operating environment remains as volatile as ever, our talented, passionate teams are delivering on the multiple growth opportunities to scale our business with creativity and discipline - from driving high-quality new consumer recruitment to expanding digital and elevating our touch points in every region and channel.”

RALPH LAUREN