Earnings per diluted share showed strength, rising 31 percent to $4.19 compared to a year earlier. Adjusted earnings per diluted share also saw a significant rebound, rising 24 percent to $4.17, compared to a reported $3.20 and an adjusted $3.35 in the third quarter of fiscal 2023, the company said. company in a press release.
Ralph Lauren Corporation reported a 6 percent year-over-year increase in revenue to $1.9 billion in Q3 FY24, with diluted earnings per share increasing 31 percent to $4.19. Growth was seen across all regions, with notable performances in Europe and Asia. The company's gross margin improved to 66.5 percent and net income increased to $277 million in Q3FY24.
Breaking down revenue by region, North America showed resilience with revenue reaching $933 million, roughly on par with the prior year. The retail segment exceeded expectations with a 5 percent increase in comparable store sales, driven by a 6 percent increase in physical stores and 4 percent growth in digital commerce. However, North American wholesale revenue saw a 15 percent decline.
Europe presented a brighter picture with an 11 percent increase in revenue to $522 million as reported, and 6 percent growth in constant currency. Comparable retail sales in Europe increased 11 percent, driven by strong performance in both physical stores and digital commerce. Wholesale revenues in Europe also saw a modest 5 percent increase as reported.
Asia stood out with a 16 percent revenue increase to $446 million as reported and an impressive 17 percent growth in constant currency. The region saw a 14 percent increase in comparable store sales, led by a notable 25 percent increase in digital commerce.
Ralph Lauren's gross profit for the quarter was $1.3 billion, with a gross margin reaching 66.5 percent. Adjusted gross margin was slightly lower at 66.4 percent, but still represented a 120 basis point improvement over the prior year.
Operating expenses totaled $968 million, an increase of 7 percent from the previous year. Despite this increase, the company managed to improve its operating margin to 16.4 percent on both a reported and adjusted basis, up 40 basis points from the prior year.
Net income for the third quarter of FY24 was $277 million, or $4.19 per diluted share as reported. Adjusted net income was slightly lower at $275 million, or $4.17 per diluted share, showing significant growth from the $216 million, or $3.20 per diluted share, reported in the third quarter of the year. fiscal year 2023.
“We had a solid holiday, with continued progress on our next big chapter: Accelerate plan and third quarter results that exceeded our expectations led by continued momentum in our direct-to-consumer channels,” he said Patrice Louvet, President and CEO. “These results underscore the diversity of our strategic growth drivers around the world in a still volatile operating environment, as well as our culture of operational discipline and agility.”
Fiber2Fashion News Desk (DP)
