The US premium lifestyle company Ralph Lauren Corporation (NYSE:RL) reported earnings per diluted share of $1.47 for the first quarter of Fiscal 2020 and revenue increase 3 % to 1,4 billion dollars.
-Our Company continues to evolve with the world around us while staying true to our values and creating inspiring style that endures, said Ralph Lauren, Executive Chairman and Chief Creative Officer.
-We delivered first quarter results in line with our overall expectations, with better than expected operating margin and double-digit EPS growth, said Patrice Louvet, President and Chief Executive Officer.
According to him, the performance of Ralph Lauren was driven by strong continued momentum in the company´s international markets and expense discipline across the organization.
Mainland China was one of the fastest growing markets, nearly 30 % revenue growth the company said. In Europe the growth was 7 % and in Asia 8%.
In the first quarter of Fiscal 2020, revenue increased by 3% to $1.4 billion on a reported basis and was up 5% in constant currency, driven by positive results across regions. Foreign currency negatively impacted revenue growth by approximately 220 basis points in the first quarter.
Revenue performance for the Company’s reportable segments in the first quarter compared to the prior year period was as follows:
Gross profit for the first quarter of Fiscal 2020 was $921 million and gross margin was 64.4%, the company said.
Gross margin of Ralph Lauren benefited from favourable product, geographic, and channel mix, partly offset by increased promotional activity to keep inventories current and healthy.
Operating income for the first quarter of Fiscal 2020 was $143 million on a reported basis, including restructuring-related and other charges of $31 million, and operating margin was 10.0%.
– For Fiscal 2020, the Company continues to expect net revenues to increase 2% to 3%. Foreign currency is expected to negatively impact revenue growth by 90 to 100 basis points in Fiscal 2020, the company said in the press release.
– Operating margin for the second quarter of Fiscal 2020 is expected to be up 40 to 60 basis points in constant currency. Foreign currency is expected to negatively impact operating margin by about 20 basis points in the second quarter, Ralph Lauren said.
The Company continues to plan capital expenditures of approximately $300 million for Fiscal 2020.