Earnings Beat, Dividend Hike, FY23 Outlook - Lots To Look In Ralph Lauren's Q4 Results

  • Ralph Lauren Corp RL reported fourth-quarter FY22 sales growth of 18% year-on-year to $1.52 billion, beating the consensus of $1.46 billion.
  • Revenues from North America increased 19% Y/Y to $674 million, Europe rose 26% to $467 million, and Asia grew 20% to $346 million. Comparable store sales increased 26%.
  • Gross profit improved to $966 million, and gross margin was 63.4%. Adjusted gross margin expanded 40 basis points to 63.3%.
  • Adjusted operating expenses were $910 million, up 19% Y/Y.
  • The operating margin was 2.4%, and operating income for the quarter was $37 million. Adjusted operating income was $54 million, and the operating margin expanded 20 basis points to 3.6%.
  • Net cash provided by operating activities for the twelve months amounted to $715.9 million. The company held $2.6 billion in cash and equivalents as of April 2, 2022.
  • Adjusted EPS of $0.49 beat the analyst consensus of $0.38.
  • Dividend: RL Board declared a 9% increase in the regular quarterly cash dividend to $0.75 per share. The next quarterly dividend is payable on July 15, 2022, to shareholders of record on July 1, 2022.
  • Outlook: Ralph Lauren sees Q1 revenue growth of about 8% and an operating margin of around 13.5% in CC.
  • For FY23, RL sees CC revenue growth in the high single digits to last year on a 52-week comparable basis, with current outlook at around 8%. It expects an operating margin of 14% - 14.5% in CC.
  • Price Action: RL shares are trading lower by 1.29% at $89.78 on the last check Tuesday.
  • Photo Via Wikimedia Commons
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Posted In: EarningsNewsGuidanceBriefs
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