The company's profits per diluted action were $ 3.52, 35 percent more than year (year -on -year) in a reported way, and $ 3.77, 40 percent more adjusted.
Ralph Lauren has reported a 14 percent yoy increase in its income to $ 1.7 billion in the first quarter of fiscal year 2016, with a net income of $ 220 million and EPS adjusted 40 percent to $ 3.77. The growth was directed by Asia, Europe and North America. The strong sales of DTC, the expansion of the margin and the new openings of the stores increased the performance. The company increased its full -year perspective while maintaining a cautious global perspective.
The net income for the quarter reached the $ 220 million reported and $ 236 million in a tight way. The gross gain stood at $ 1.2 billion, with a gross margin of 72.3 percent, 180 basic points (BPS) above the previous year, helped by a higher average unit (aur), favorable products and geographical mix, and lower cotton costs. Aur increased 14 percent through the company's direct network (DTC), said Ralph Lauren in a press release.
Operating income totaled $ 274 million (15.9 percent margin) and $ 293 million (17 percent margin) in a tight manner. The operational margins improved in all key regions, with Asia leading 30.7 percent, Europe with 26.4 percent and North America to 20.7 percent.
The company also reported continuous progress in its brand construction initiatives. Ralph Lauren acquired 1.4 million new DTC customers in the first quarter and reached almost 66 million followers on social networks. The quarter presented high -impact events such as the first fashion show of the brand in Shanghai, the activations of the MLB World Tour Tokyo series and a spring parade '26 in Milan.
“What we represent, aspiration, optimism, individuality and authenticity, inspires people in every corner of the world,” he said Ralph Lauren, Executive President and Creative Director In the company. “And we are giving life to these values and inviting people to enter their dreams in a new and powerful way, from our first fashion presentation in Shanghai this April to our activations of the MLB World Tokyo Series series and our presentation of pole for women in Paris.”
The company ended the quarter with $ 2.3 billion in cash and short -term investments and $ 1.6 billion in total debt. Inventory levels increased 18 percent to $ 1.2 billion. Ralph Lauren also recovered approximately $ 250 million in common class A shares during the quarter.
“We deliver strong results of the first quarter in geographies, channels and consumption segments,” he said Patrice Louvet, president and docliff myXEQUE EITHERFficer (CEO) in Ralph Lauren. “While we continue to address the current global operating environment with prudence, we encourage the wide -based strength in our brand and our businesses as we execute our long -term strategic priorities, including recruitment of new and younger consumers, strengthening our core and high -power categories and the development of our key city ecosystems in each region.”
Looking towards the future, the company raised its guide to the fiscal year 26. Now it hopes that the income will increase in the low digits to constant currency, and the currencies are expected to provide a basic point benefit of 150 to 200. It is projected that the operating margin will expand from 40 to 60 bp in constant currency, with additional FX benefits.
For the second quarter (Q2), income is expected to grow in high digits in a constant currency, with an expansion of the operating margin from 120 to 160 bp. The company anticipates a tax rate of approximately 19 to 20 percent for the whole year, and from 15 to 17 percent for the second quarter. Capital spending for fiscal year26 remains estimated at 4 to 5 percent of income.
Fiber2Fashion News Desk (SG)
