Note: Ralph Lauren’s fiscal year 2023 ended on April 1, 2023.
After a 10% increase year-to-date, at the current price of around $116 per share, we believe Ralph Lauren’s stock (NYSE: RL), a company engaged in the design, marketing, and distribution of premium lifestyle products, including apparel, accessories, fragrances, and home furnishings, could see a modest further rise. The company has adjusted well to the inflationary environment. Consequently, the retailer’s gross margin rose to almost 69% (up 180 basis points year-over-year). The outlook for the company indicates both revenue growth and expanded margins from last year. For the full year, the company expects top-line growth to be led by Asia, up double digits, followed by a low single-digit increase in Europe. However, it still expects a low single-digit decline in North America based on softer spring trends in the first half and wholesale timing shifts in Q1. RL also anticipates operating margin expansion of approximately 30 to 50 basis points in constant currency in the range of 12.3% to 12.5% in FY’24. The company also expects an increase in gross margin of about 100 basis points as a result of decreased freight costs, favorable geographical and sales mix, and continued growth in average unit retail, more than offsetting the impact of raw material inflation.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.