In the third quarter (Q3) of fiscal 2022, net revenue of the leading fashion brand Ralph Lauren has increased by 27 per cent to $1.8 billion on a reported basis and a 28 per cent increase in constant currency. Foreign currency negatively impacted the company's revenue growth by approximately 150 basis points in the third quarter of fiscal 2022.
The company repurchased approximately $300 million of Class A Common Stock in the third quarter. In addition, the company's board of directors authorised a new $1.5 billion stock repurchase programme permitting it to purchase shares of Class A Common Stock, subject to overall business and market conditions. This is in addition to the $280 million available at the end of third quarter Fiscal 2022 as part of a previously authorised stock repurchase programme, bringing the company's total current authorization to $1.78 billion, Ralph Lauren said in a press release.
"What we do has always been about living — enjoying every moment from what you wear, to the way you live, to the way you love," said Ralph Lauren, executive chairman and chief creative officer. "And as we enter a new year, filled with hope of more connection and healing as humans and for our planet, I am inspired by how our teams and people around the world are connecting to what we are about — timelessness and an authentic life well-lived."
Ralph Lauren delivered strong growth across every region in the quarter, exceeding expectations with North America up 30 per cent, Europe up 50 per cent and Asia up 20 per cent to last year in constant currency. All three regions returned to positive growth compared to third quarter Fiscal 2020 pre-pandemic levels
"We were pleased to report strong third quarter performance during the important holiday season," said Patrice Louvet, president and chief executive officer. “Our better-than-expected results across all three regions are a testament to the outstanding work our teams have done to fundamentally reposition our business, elevate our brand and pivot to offense – including in North America, where our turnaround is well underway. With our significant reset work behind us, we are encouraged that our long-term growth is supported by multiple engines – from geographic and channel expansion to recruiting new high-value consumers and developing high-potential product categories."
For fiscal 2022, the company now expects constant currency revenue growth of approximately 39 per cent to 41 per cent to last year on a 53-week reported basis, compared to its previous outlook of 34 per cent to 36 per cent growth. Foreign currency is expected to negatively impact revenue growth by approximately 70 basis points.
The company also raised its outlook for operating margin for fiscal 2022 to approximately 13 per cent on both a reported and constant currency basis, compared to a range of 12.0 per cent to 12.5 per cent previously. This compared to operating margin of 4.8 per cent in the prior year period and 10.3 per cent in fiscal 2020.
Source: Fibre2Fashion News Desk (RR)
