Ralph Lauren sees revenues rise 8% in Q1

Ralph Lauren has reported an 8% increase in revenue to £1.3 billion ($1.5 billion) for the first quarter of FY23.

In Europe, revenue increased 17% to £365 million ($416 million). In retail, comparable store sales were up 34%, with a 45% increase in brick and mortar stores and a 7% increase in e-commerce. Wholesale revenue in Europe increased 8%.

Gross profit totalled £878 million ($1 billion). Adjusted gross margin was 68.0%, 180 basis points below the prior year, with better pricing and promotions offset by increased freight headwinds to mitigate global supply chain delays.

Net income in the first quarter totalled £108 million ($123 million), compared to £144 million ($165 million) in Q1 FY22.

Looking ahead to FY23, Ralph Lauren said it continues to expect revenues to increase 8%. Based on current exchange rates, foreign currency is now expected to negatively impact the company's revenue growth by approximately 600 basis points.

For the second quarter, Ralph Lauren expects revenue growth to increase 11%. The second quarter outlook reflects continued caution around consumer sentiment and current exchange rates.

Patrice Louvet, President and CEO 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."