Breaking down revenues geographically, North America generated $3 billion, a 2-per cent increase in FY23. Europe contributed $1.8 billion, up by 3 per cent on a reported basis, while Asia saw an impressive 11-per cent jump, bringing in $1.4 billion.
US-based fashion company Ralph Lauren posted a 4-per cent increase in net revenues to $6.4 billion in FY23, with growth in all regions.
Gross profit was $4.2 billion.
In Q4 FY23, the company reported a 1-per cent increase in revenues to $1.5 billion.
Despite challenges, adjusted net income for Q4 FY23 was $61 million, up from $36 million in Q4 FY22.
The company’s gross profit for FY23 was $4.2 billion, with a gross margin of 64.6 per cent. However, on an adjusted basis, the gross margin was slightly lower than FY22, at 66.3 per cent in constant currency, Ralph Lauren Corporation said in a media release.
Operating expenses stood at $3.5 billion, including $51 million in restructuring-related and other net charges. On an adjusted basis, operating expenses were $3.6 billion in constant currency, marking a 9 per cent rise on a 52-week comparable basis but down about 70 basis points as a percent of sales.
The corporation reported operating income of $704 million, inclusive of restructuring-related and other net charges of $66 million. North America’s operating income was $543 million with a margin of 18 per cent. Europe and Asia reported operating income of $406 million (22.1 per cent margin) and $290 million (20.3 per cent margin) respectively.
Net income for FY23 was $523 million or $7.58 per diluted share, while on an adjusted basis, net income was $576 million or $8.34 per diluted share. This compares to net income of $600 million or $8.07 per share on a reported basis, and net income of $623 million or $8.38 per share on an adjusted basis in FY22.
“We made strong progress in the first year of our next great chapter: Accelerate plan, as our teams around the world executed exceptionally well through a highly dynamic global operating environment,” said Patrice Louvet, president and chief executive officer. “Our fiscal 2023 performance puts us on track with our investor day commitments. We continue to be on offense as we balance growth and operating discipline, investing in our brand while delivering strong shareholder returns.”
In the fourth quarter (Q4) of FY23, revenue increased 1 per cent to $1.5 billion on a reported basis, compared to Q4 FY22. North America and Europe reported decreases in revenue by 3 per cent year-on-year (YoY) and 1 per cent YoY respectively, while Asia increased by a notable 13 per cent YoY.
Gross profit for Q4 FY23 was $951 million with a gross margin of 61.7 per cent. Operating expenses were $910 million, including $32 million in restructuring-related and other net charges. Operating income for the quarter was $40 million, with an operating margin of 2.6 per cent on a reported basis. However, adjusted operating income was $98 million and the margin was 6.1 per cent in constant currency, the release added.
For the quarter, net income on a reported basis was $32 million or $0.48 per diluted share. On an adjusted basis, net income was $61 million or $0.90 per diluted share. This shows a considerable improvement from net income of $24 million or $0.34 per diluted share on a reported basis, and net income of $36 million or $0.49 per diluted share on an adjusted basis for Q4 FY22.
Fibre2Fashion News Desk (DP)