NYSE$RL

Ralph Lauren Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Ralph Lauren reported Q1 2023 earnings with revenue growth and adjusted operating margin exceeding expectations.

Ralph Lauren's Q1 2023 results showed strong revenue growth, driven by performance across all regions and comparable store sales. The adjusted operating margin exceeded expectations due to operating expense discipline. The company reiterated its full-year fiscal 2023 outlook.

  • Delivered First Quarter Revenue Growth of 8% on a Reported Basis and 13% on a Constant Currency Basis.
  • First Quarter Adjusted Operating Margin of 12.7% Exceeded Outlook.
  • Drove Investments in Key Strategic Priorities and Returned Cash to Shareholders.
  • Reiterated Full Year Fiscal 2023 Outlook of High-Single Digit Net Revenue Growth and Adjusted Operating Margin of Approximately 14.0% to 14.5%.

Headline financials

Total Revenue

$1.49B

Previous: $1.38B+8.3%
EPS (adj)

$1.88

Previous: $2.29-17.9%
Free Cash Flow

$123M

Previous: $165M-25.1%
Net Income

$123M

Previous: $165M-25.1%
Operating Income

$175M

Previous: $221M-20.6%
Gross Profit

$1B

Previous: $968M+3.4%
Cash & Equivalents

$1.46B

Previous: $2.6B-43.9%
Total Assets

$6.95B

Previous: $7.96B-12.7%
Stock-Based Comp

$18.2M

Previous: $18.4M-1.1%

Revenue & EPS history

Ralph Lauren · Revenue · Quarterly

$1.49B

Q1 2023+8.3%vs Q1 2022
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ralph Lauren · $1.49B total across 4 segments · Q1 2023

  • North America
    $701M+5.8%
  • Europe
    $416M+17.1%
  • Asia
    $334M+15.9%
  • Other
    $40.2M-43.5%

Forward guidance

The Company expects constant currency revenues to increase approximately high single digits. Operating margin for the second quarter is expected to be in a range of 15.4% to 15.7% in constant currency.

Tailwinds

  • Company continues to expect constant currency revenues to increase approximately high single digits to last year on a 52-week comparable basis, with our outlook centered around 8%.
  • The Company continues to expect operating margin for Fiscal 2023 in a range of approximately 14.0% to 14.5% in constant currency.
  • Gross margin is still expected to increase approximately 30 to 50 basis points in constant currency on a 52-week comparable basis, with stronger AUR and favorable product mix more than offsetting higher freight and product cost inflation.

Headwinds

  • Based on current exchange rates, foreign currency is now expected to negatively impact revenue growth by approximately 600 basis points in Fiscal 2023.
  • On a 53-week comparable basis, Fiscal 2023 revenue growth is still expected to be negatively impacted by approximately 100 basis points due to the absence of the 53rd week compared to the prior year.
  • Foreign currency is now expected to negatively impact operating margin by approximately 180 basis points in Fiscal 2023.
  • Foreign currency is expected to negatively impact gross margins by approximately 150 basis points in Fiscal 2023.
  • Foreign currency is expected to negatively impact second quarter operating margin by approximately 240 basis points.

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 2023

Historical avgQ1 2023

+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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