Ralph Lauren beats by $0.22, beats on revs (164.95)
- Reports Q1 (Jun) earnings of $2.70 per share, excluding non-recurring items, $0.22 better than the FactSet Consensus of $2.48; revenues rose 1.0% year/year to $1.51 bln vs the $1.49 bln FactSet Consensus.
- Inventory at the end of the first quarter of Fiscal 2025 was $1.0 billion, down 13% compared to the prior year period, primarily driven by strategic reductions in North America.
- For the second quarter, the Company expects constant currency revenues to grow approximately low- to mid-single digits to last year, in a range centered around 3% to 4%. Foreign currency is expected to negatively impact revenue growth by approximately 160 basis points.
- Operating margin for the second quarter is expected to expand approximately 80 to 120 basis points in constant currency, with roughly 110 to 130 basis points of gross margin expansion more than offsetting higher planned operating expenses to support key marketing campaigns in the quarter.
- For Fiscal 2025, the Company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis, centering on around 2% to 3%.
- The Company continues to expect operating margin for Fiscal 2025 to expand approximately 100 to 120 basis points in constant currency, driven by gross margin expansion and operating expense leverage.
- Gross margin is expected to increase approximately 50 to 100 basis points in constant currency. Foreign currency is now expected to negatively impact gross and operating margins by approximately 40 basis points.