Ralph Lauren posts Q4FY18 revenue at $1.5 billion

The fourth quarter revenue decline was better than our guidance of an 8-10 per cent constant currency revenue decline. For fiscal 2018, revenue decreased 7 per cent to $6.2 billion on a reported basis and decreased 8 per cent in constant currency.

Gross profit for the fourth quarter of fiscal 2018 was $909 million on a reported basis, including inventory-related charges of $6 million, and gross margin was 59.4 per cent. Adjusted gross profit, excluding such charges, was $915 million and adjusted gross margin was 59.8 per cent. For fiscal 2018, gross profit was $3.8 billion on a reported basis, including $8 million in inventory-related charges and gross margin was 60.7 per cent. On an adjusted basis, gross margin was 60.8 per cent.

"As we reflect on the year, I am incredibly proud of what the team is doing to elevate and energize our brand around the world," said Ralph Lauren, executive chairman and chief creative officer. " Louvet and I have developed a strong partnership over the past year and I am confident that we are on the right path as we kick off our 50^th anniversary celebration and build the future of our iconic company and brand."

The company ended fiscal 2018 with $2.1 billion in cash and short and long term investments and $596 million in total debt, compared to $1.4 billion and $588 million, respectively, at the end of fiscal 2017.

"We delivered on our commitments for the fourth quarter and full year, and we made strong operational progress," said Patrice Louvet, president and chief executive officer. "We start the new year with a solid foundation – including a clear strategic plan to deliver long-term growth and value creation, an engaged global organization, and a strong balance sheet. We look forward to discussing our plan in more detail at our Investor Day on June 7^th. Ralph and I are also pleased to welcome Michael George, who has recently joined our board of directors, and Angela Ahrendts, who will be nominated for election to join our Board in August."

For fiscal 2019, net revenue is expected to decrease low single-digits in constant currency. Foreign currency is expected to have minimal impact on revenue growth in fiscal 2019. The company expects operating margin for fiscal 2019 to be up slightly in constant currency driven by gross margin expansion. Foreign currency is expected to have minimal impact on operating margin in fiscal 2019. In the first quarter of fiscal 2019, the company predicts net revenue to be flat to down slightly in constant currency. (RR)

Fibre2Fashion News Desk – India