Ralph Lauren raises profit guidance as sales grow

Ralph Lauren has announced its first quarter results for fiscal year 2023, revealing revenue of $1.5 billion (£1.24 billion), up 8% on a reported basis and 13% on a constant currency basis.

For fiscal year 2023, the company posted gross profit of $1 billion (£820 million) and gross margin of 67.2%. Operating income was $175 million (£144.7 million) and operating margin was 11.8% on a reported basis.

Ralph Lauren exceeded analysts' expectations of its first quarter results, driven by strong growth across all regions and a mid-teens comparable store sales increase.

Europe revenue in the first quarter increased 17% to $416 million (£344 million) on a reported basis and increased 28% in constant currency. In retail, comparable store sales in Europe were up 34%, with a 45% increase in brick and mortar stores and a 7% increase in digital commerce.

Europe wholesale revenue increased 8% on a reported basis and increased 20% in constant currency.

Looking ahead, Ralph Lauren expects constant currency revenues to increase by approximately high single digits on a 52-week comparable basis, or by about 8%. The company expects operating margin in the range of approximately 14% to 14.5% in constant currency.

Patrice Louvet, President and Chief Executive Officer of Ralph Lauren said: "Our strong first quarter performance underscores the power of our brand and momentum of our strategy around the world, following our significant multi-year reset.

"While the global operating environment remains as volatile as ever, our talented, passionate teams are delivering on the multiple growth opportunities to scale our business with creativity and discipline – from driving high-quality new consumer recruitment to expanding digital and elevating our touch points in every region and channel."

Ralph Lauren, Executive Chairman and Chief Creative Officer added: "Our vision of timelessness and an authentic life well-lived continues to resonate around the world. From the elegant spirit of Wimbledon to the anniversary celebration of our iconic Polo Shirt, our brand is inspiring people to step into their dreams."