Ralph Lauren Corp displayed positive earnings result after surpassing the market estimates in both of its profit and sales sectors. This is believed to be the eighth consecutive quarter where it announced earnings beat.
However, the fashion line also reported a 7% revenue decline during the same quarter on a constant currency basis. The revenue recorded for the North American region plunged by at least 14% to $759M.
“As we reflect on the year, I am incredibly proud of what the team is doing to elevate and energize our brand around the world,” Executive Chairman and Chief Creative Officer Ralph Lauren, expressed in a statement. “Patrice and I have developed a strong partnership over the past year and I am confident that we are on the right path as we kick off our 50th anniversary celebration and build the future of our iconic Company and brand.”
As for the other regions, the revenue recorded for Europe added 13% to $420M whereas Asia noted a 17% jump to $257M during the quarter.
Furthermore, the adjusted gross margin rate saw a 440 bps improvement to 59.8% as well. However, the adjusted operating margin rate declined by 110 bps to 5.6% singly.
Exterior view of Ralph Lauren Store in Marina Bay Sands Shopping mall, Singapore. Best known for the Polo Ralph Lauren clothing brand.
“We delivered on our commitments for the fourth quarter and full year, and we made strong operational progress,” President and Chief Executive Officer Patrice Louvet told reports. “We start the new year with a solid foundation – including a clear strategic plan to deliver long-term growth and value creation, an engaged global organization, and a strong balance sheet. We look forward to discussing our plan in more detail at our Investor Day on June 7th. Ralph and I are also pleased to welcome Michael George, who has recently joined our Board of Directors, and Angela Ahrendts, who will be nominated for election to join our Board in August.”
Despite the negative indication recorded in Sales, it was still generally higher than the expected drop of from the analyst of 2.3%. During the period, the fashion brand noted a 1% drop only for the said sector.
“Today’s results from Ralph Lauren confirm that the company is headed slowly in the right direction,” Managing Director Neil Saunders told reports.
Furthermore, the trading performance of Ralph Lauren surged during the release of the report. The performance reached new highs as it concluded at $135.39 in early day trades.
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