NYSE$RL

Ralph Lauren Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Ralph Lauren's Q1 2022 revenues increased, exceeding expectations due to strong performance in North America and Europe, with significant digital growth and margin expansion.

Ralph Lauren reported strong first-quarter fiscal 2022 results, with revenues increasing by 182% to $1.4 billion. The company's global digital ecosystem experienced substantial growth, and operating margin reached its highest level since fiscal 2014. As a result, the full-year fiscal 2022 outlook was raised.

  • Revenues increased 182% to $1.4 billion, exceeding expectations, driven by growth in North America and Europe.
  • Global digital ecosystem accelerated with more than 80% growth.
  • Average unit retail (AUR) increased by 17%, driven by brand elevation and strong full-priced selling.
  • Adjusted operating margin reached 16.8%, the highest for the first quarter since fiscal 2014.

Headline financials

Total Revenue

$1.38B

Previous: $488M+182.3%
EPS (adj)

$2.29

Previous: -$1.82+225.8%
Free Cash Flow

$165M

Previous: -$128M+229.0%
Net Income

$165M

Previous: -$128M+229.0%
Operating Income

$221M

Previous: -$168M+231.3%
Gross Profit

$968M

Previous: $349M+177.6%
Cash & Equivalents

$2.6B

Previous: $2.45B+5.9%
Total Assets

$7.96B

Previous: $7.74B+2.9%
Stock-Based Comp

$18.4M

Previous: $15.1M+21.9%

Revenue & EPS history

Ralph Lauren · Revenue · Quarterly

$1.38B

Q1 2022+182.3%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Ralph Lauren · $1.38B total across 4 segments · Q1 2022

  • North America
    $662M+301.0%
  • Europe
    $355M+194.0%
  • Asia
    $288M+67.7%
  • Other
    $71.1M+138.6%

Forward guidance

The Company expects constant currency revenues to increase approximately 25% to 30% to last year on a 53-week reported basis and operating margin for Fiscal 2022 of about 12.0% to 12.5%.

Tailwinds

  • Constant currency revenues are expected to increase approximately 25% to 30%.
  • Foreign currency is expected to positively impact revenue growth by approximately 30 basis points.
  • Operating margin is expected to be in the range of 12.0% to 12.5%.
  • Gross margin is now expected to increase 50 to 70 basis points to last year.
  • Revenues are expected to increase approximately 20% to 22% in constant currency to last year for second quarter Fiscal 2022.

Headwinds

  • Ongoing uncertainty and evolving situation surrounding COVID-19.
  • Potential for further outbreaks or resurgences of the pandemic across various markets.
  • Potential global supply chain disruptions.
  • The full year Fiscal 2022 tax rate is now expected to be approximately 24%, assuming a continuation of current tax laws.
  • Second quarter Fiscal 2022 tax rate is expected to be approximately 24% to 25%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.6%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+20.8%

Q2 2016

Best reaction

-24.5%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+12.6%+14.2%+25.2%
Q3 2026-4.5%+0.4%-4.6%
Q2 2026-0.6%+5.3%+16.3%
Q1 2026-6.4%-1.1%+3.0%
Q4 2025+1.1%+4.5%-3.5%
Q3 2025+9.7%+9.3%-6.6%
Q2 2025+7.0%+0.7%+10.9%
Q1 2025-2.0%-3.6%+4.8%
Q4 2024+5.6%+10.4%+11.2%
Q3 2024+18.9%+19.2%+19.6%
Q2 2024+3.3%+2.2%+16.7%
Q1 2024-5.5%-6.9%-9.0%
Q4 2023+4.2%+1.0%+10.5%
Q3 2023+1.0%+4.3%-3.2%
Q2 2023+15.7%+15.1%+19.1%
Q1 2023-5.6%-2.3%-6.9%
Q4 2022+3.0%+8.7%+2.6%
Q3 2022+4.4%+9.7%+2.1%
Q2 2022-5.2%-1.7%-8.2%
Q1 2022+4.4%+4.4%-0.4%
Q4 2021-7.6%-7.2%-13.4%
Q3 2021+3.1%+4.9%+16.2%
Q2 2021-10.0%-7.0%+18.4%
Q1 2021-1.7%-5.4%+6.4%
Q4 2020-1.7%-5.7%-16.8%
Q3 2020+8.2%+6.4%-4.5%
Q2 2020+12.8%+10.4%+10.7%
Q1 2020-6.3%-11.1%-20.9%
Q4 2019-2.2%-4.9%-4.8%
Q3 2019+10.1%+9.1%+7.7%
Q2 2019-6.9%-9.4%-20.4%
Q1 2019-5.2%-4.1%-3.0%
Q4 2018+15.6%+17.7%+11.7%
Q3 2018-3.9%-6.6%-6.9%
Q2 2018+1.4%-5.0%+6.9%
Q1 2018+11.4%+7.2%+13.6%
Q4 2017-4.8%-6.9%-0.9%
Q3 2017-12.8%-13.0%-8.7%
Q2 2017+4.8%+10.8%+6.7%
Q1 2017+14.3%+14.8%+6.0%
Q4 2016+1.2%
Q3 2016-24.5%
Q2 2016+20.8%
Q1 2016-2.5%
Q4 2015-1.1%
Q3 2015-17.0%
Q2 2015+3.2%
Q1 2015+1.0%
Q4 2014-3.1%
Q3 2014-1.3%
Q2 2014+0.9%
Q1 2014-6.2%
Q4 2013-3.8%
Q3 2013+8.0%
Q2 2013+1.4%
Q1 2013-3.0%
Q4 2009-0.0%
Q4 2012+2.5%
Q3 2012+9.8%
Q2 2012-4.9%
Q1 2012+8.9%
Q4 2011+10.2%
Q2 2011+10.2%
Q3 2010+9.7%
Q3 2011+9.7%
Q2 2010-5.5%
Q1 2011-5.5%
Q4 2010-5.5%
Q1 2010-5.5%

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