- Ralph Lauren Corp (NYSE:RL) reported fourth-quarter FY22 sales growth of 18% year-on-year to $1.52 billion, beating the consensus of $1.46 billion.
- Revenues from North America increased 19% Y/Y to $674 million, Europe rose 26% to $467 million, and Asia grew 20% to $346 million. Comparable store sales increased 26%.
- Gross profit improved to $966 million, and gross margin was 63.4%. Adjusted gross margin expanded 40 basis points to 63.3%.
- Adjusted operating expenses were $910 million, up 19% Y/Y.
- The operating margin was 2.4%, and operating income for the quarter was $37 million. Adjusted operating income was $54 million, and the operating margin expanded 20 basis points to 3.6%.
- Net cash provided by operating activities for the twelve months amounted to $715.9 million. The company held $2.6 billion in cash and equivalents as of April 2, 2022.
- Adjusted EPS of $0.49 beat the analyst consensus of $0.38.
- Dividend: RL Board declared a 9% increase in the regular quarterly cash dividend to $0.75 per share. The next quarterly dividend is payable on July 15, 2022, to shareholders of record on July 1, 2022.
- Outlook: Ralph Lauren sees Q1 revenue growth of about 8% and an operating margin of around 13.5% in CC.
- For FY23, RL sees CC revenue growth in the high single digits to last year on a 52-week comparable basis, with current outlook at around 8%. It expects an operating margin of 14% - 14.5% in CC.
- Price Action: RL shares are trading lower by 1.29% at $89.78 on the last check Tuesday.
- Photo Via Wikimedia Commons
