NYSE$RL
Ralph Lauren Corp · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Ralph Lauren's Q1 2024 performance was solid, driven by growth in Asia and Europe, with brand elevation offsetting cost headwinds.
Ralph Lauren reported a slight increase in revenue, driven by growth in Asia and Europe. The company's EPS grew, and it maintained a healthy balance sheet with $1.7 billion in cash and short-term investments. The company reaffirmed its full-year outlook.
- Revenue increased slightly on a reported basis and 1% in constant currency, led by Asia and Europe.
- Global direct-to-consumer comparable store sales grew low-single digits, driven by strong full-price retail performance and double-digit AUR growth.
- Gross margin expansion resulted in operating margin and double-digit EPS growth, with brand elevation offsetting product cost headwinds.
- The company maintained a healthy balance sheet with $1.7 billion in cash and short-term investments and inventory growth of 1%.
Headline financials
Revenue & EPS history
Ralph Lauren · Revenue · Quarterly
$1.5B
Revenue by segment
Ralph Lauren · $1.5B total across 4 segments · Q1 2024
- North America$632M-9.8%42.2%
- Europe$451M+8.4%30.1%
- Asia$378M+13.0%25.2%
- Other$36.8M-8.5%2.5%
Forward guidance
The Company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis. For the second quarter, the Company expects revenue to be flat to up slightly to last year in constant currency.
Tailwinds
- Revenue to increase approximately low-single digits to last year on a constant currency basis.
- Operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency, driven by gross margin expansion.
- Gross margin is now expected to increase approximately 100 basis points in constant currency.
- Reduced freight costs, favorable geographic mix and continued growth in AUR more than offsetting product cost inflation.
- Full year Fiscal 2024 tax rate is now expected in the range of approximately 23% to 24%.
Headwinds
- Foreign currency is expected to negatively impact revenue growth by approximately 20 basis points in Fiscal 2024.
- Foreign currency is expected to negatively impact gross margins by approximately 30 basis points in Fiscal 2024.
- Operating margin for the second quarter is expected to be in the range of 9.5% to 10.0% on a reported basis and 9.0% to 9.5% in constant currency.
- Foreign currency is expected to negatively impact gross margin by approximately 10 basis points in the quarter.
- Capital expenditures for Fiscal 2024 of approximately $250 million to $275 million.
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 2024
+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
| Quarter | Report date | Reaction (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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