Ralph Lauren returns to Q1 earnings growth, revenue up 182 percent

Ralph Lauren Corporation said, earnings per diluted share for the first quarter were 2.18 dollars on a reported basis and 2.29 dollars on an adjusted basis compared to loss per diluted share of 1.75 dollars on a reported basis and negative 1.82 dollars on an adjusted basis, for the first quarter of fiscal 2021.

In the first quarter of fiscal 2022, the company’s revenue increased by 182 percent to 1.4 billion dollars on a reported basis and was up 176 percent in constant currency.

“Against the backdrop of stronger than expected re-openings across North America and Europe, our teams delivered exceptional performance this quarter,” said Patrice Louvet, the company’s president and CEO.

Ralph Lauren’s financial performance across key markets

The company added that North America revenue increased 301 percent to 662 million dollars. In retail, comparable store sales in North America were up 176 percent, with a 278 percent increase in brick and mortar stores and a 51 percent increase in digital commerce. North America wholesale revenue increased to 250 million dollars compared to 23 million dollars in the prior year period.

Ralph Lauren’s revenue in Europe increased 194 percent to 355 million dollars on a reported basis and 179 percent in constant currency. In retail, comparable store sales in Europe were up 98 percent with a 154 percent increase in brick and mortar stores and a 23 percent increase in digital commerce. Europe wholesale revenue increased 344 percent on a reported basis and 324 percent in constant currency.

The company’s Asia revenue increased 68 percent to 288 million dollars on a reported basis and 61 percent in constant currency. Comparable store sales in Asia increased 43 percent, with a 43 percent increase in brick and mortar stores and a 42 percent increase in digital commerce.

Ralph Lauren announces full year fiscal 2022 and second quarter outlook

The company continues to note the ongoing uncertainty and evolving situation surrounding Covid-19 impacting the timing and path of recovery in each market, including the potential for further outbreaks or resurgences of the pandemic across various markets as well as potential global supply chain disruptions.

For fiscal 2022, the company now expects constant currency revenues to increase approximately 25 percent to 30 percent to last year on a 53-week reported basis. Foreign currency is expected to positively impact revenue growth by approximately 30 basis points. The 53rd week is expected to represent approximately 140 basis points of this year’s revenue growth.

For second quarter fiscal 2022, the company said, revenues are expected to increase approximately 20 percent to 22 percent in constant currency to last year. Foreign currency is expected to positively impact revenue growth by approximately 50 basis points.