NYSE$RL

Ralph Lauren Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Ralph Lauren exceeded expectations in Q4 2023, driven by strong growth in Asia and Europe, and brand elevation.

Ralph Lauren reported a 1% increase in revenue to $1.5 billion in the fourth quarter of Fiscal 2023. Earnings per diluted share were $0.48 on a reported basis and $0.90 on an adjusted basis. The company's performance was driven by strong growth in Asia and Europe, and continued brand elevation.

  • Revenue increased by 1% on a reported basis and 9% in constant currency.
  • Global Direct-to-Consumer comparable store sales grew 6%, driven by double-digit AUR growth.
  • Operating margin expanded, and operating profit grew despite cost and foreign currency headwinds.
  • The company returned $653 million to shareholders through dividends and share repurchases in Fiscal 2023.

Headline financials

Total Revenue

$1.54B

Previous: $1.52B+1.2%
EPS (adj)

$0.90

Previous: $0.49+83.7%
Net Income

$32.3M

Previous: $24.4M+32.4%
Operating Income

$40.2M

Previous: $36.8M+9.2%
Gross Profit

$951M

Previous: $966M-1.6%
Cash & Equivalents

$1.53B

Previous: $1.86B-17.9%
Total Assets

$6.79B

Previous: $7.72B-12.1%
Stock-Based Comp

$15.6M

Previous: $19.1M-18.3%

Revenue & EPS history

Ralph Lauren · Revenue · Quarterly

$1.54B

Q4 2023+1.2%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Ralph Lauren · $1.54B total across 4 segments · Q4 2023

  • North America
    $656M-2.8%
  • Europe
    $461M-1.4%
  • Asia
    $390M+12.7%
  • Other
    $34.4M-1.4%

Forward guidance

The Company expects revenues to increase approximately low-single digits to last year on a constant currency basis. The Company expects operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency, driven by gross margin expansion.

Tailwinds

  • Revenues to increase approximately low-single digits on a constant currency basis.
  • Operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency.
  • Gross margin expansion is expected to increase about 50 to 100 basis points in constant currency.
  • Stronger AUR.
  • Reduced freight costs.

Headwinds

  • Inflationary pressures.
  • Consumer spending-related headwinds.
  • Foreign currency volatility.
  • The war in Ukraine.
  • COVID-19-related impacts.

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 Q4 2023

Historical avgQ4 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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