US fashion company Ralph Lauren's gross profit at $1.2 bn in Q3 FY23

The adjusted gross margin was 65.2 per cent, 80 basis points below the prior year but up 80 basis points in constant currency due to better pricing, product mix, and lower air freight expenses, the company said in a press release.

Ralph Lauren’s North America revenue increased 1 per cent year-on-year (YoY) to $938 million, with a 2 per cent increase in comparable store sales in retail. Europe revenue increased 1 per cent YoY to $469 million on a reported basis and 13 per cent in constant currency. Asia revenue increased 1 per cent YoY to $386 million on a reported basis and 16 per cent in constant currency.

Operating expenses in the third quarter were $909 million, and on an adjusted basis, operating expenses were $901 million, down 1 per cent from the prior year period. The adjusted operating expense rate was 49.2 per cent, compared to 50.1 per cent in the prior year.

The operating income for the third quarter was $282 million with an operating margin of 15.4 per cent on a reported basis. The adjusted operating income was $294 million, and the operating margin was 16 per cent, 10 basis points above the prior year.

The net income in the third quarter was $216 million, or $3.20 per diluted share on a reported basis, and on an adjusted basis, the net income was $226 million, or $3.35 per diluted share.

For the fiscal year 2023, the company expects constant currency revenue to increase approximately 8 per cent on a 52-week comparable basis and operating margin to be in the range of 13.5 per cent to 14 per cent in constant currency. The company expects gross margins to be flat in constant currency.

For the fourth quarter of fiscal 2023, the company expects revenue to increase mid- to high-single digits in constant currency. Operating margin for the fourth quarter is expected to be approximately 5.5 per cent in constant currency.

Fibre2Fashion News Desk (DP)