Ralph Lauren Corporation, a leading American designer, marketer and distributor of luxury lifestyle products, has reported revenue growth of 1% to $1.5 billion in the first quarter of fiscal year 2025 (Q1 FY25). Revenue increased 3% in constant currency. Foreign currency fluctuations negatively impacted revenue growth by approximately 170 basis points.
Ralph Lauren Corporation reported a 1% increase in revenue to $1.5 billion for the first quarter of fiscal year 2025, up 3% in constant currency. Gross profit was $1.1 billion, with a margin of 70.5%. Net income was $169 million, or $2.61 per share. North America revenue fell 4%, while Europe and Asia posted growth of 6% and 4%, respectively.
First-quarter gross profit was $1.1 billion, with a gross margin of 70.5 percent. Operating expenses totaled $857 million on a reported basis. On an adjusted basis, operating expenses were $850 million, reflecting an increase of 2 percent from the prior year. Operating income for the quarter was $209 million, resulting in an operating margin of 13.8 percent on a reported basis, the company said in a news release.
Net income for the first quarter of fiscal 2025 was $169 million, or $2.61 per diluted share on a reported basis. On an adjusted basis, net income was $175 million, or $2.70 per diluted share. This compares to net income of $132 million, or $1.96 per diluted share on a reported basis, and net income of $158 million, or $2.34 per diluted share on an adjusted basis, for the first quarter of fiscal 2024.
Revenue performance of the company’s reportable segments varied. North America revenue in the first quarter decreased 4 percent to $608 million. In retail, comparable-store sales in North America increased 1 percent, with a 3 percent increase in physical stores more than offsetting a 4 percent decline in digital commerce.
Revenue in Europe in the first quarter increased 6% to $479 million on a reported basis and 7% in constant currency. In retail, comparable store sales in Europe increased 8%, above expectations, with a 7% increase in physical stores and a 14% increase in digital commerce. Wholesale revenue in Europe increased 5% compared to the prior year on both a reported and constant currency basis.
Revenue in Asia in the first quarter increased 4% to $391 million on a reported basis and 9% in constant currency, slightly above expectations. Comparable store sales in Asia increased 9%, with a 7% increase in physical stores and a 21% increase in digital commerce.
“Our brand has always been about inspiring a better life and celebrating the moments that unite us,” he said. Ralph Lauren, CEO and Chief Creative Officer“From our intimate runway show in our New York studio this spring to our elegant presentation at Salone del Mobile in Milan and the Olympic Games this summer, we're inviting people around the world to realize their dreams through authentic, timeless style.”
Fibre2Fashion (DP) Press Desk
