- Ralph Lauren (RL +9.1%) reports revenue decreased 12% on a constant currency basis in Q1.
- North America revenue squeezed 17.1% to $709.7M (-16.9% on a constant currency basis) due to lower sales in both the retail and wholesale channels, driven by distribution and brand exits, a strategic reduction in shipments and promotional activity to increase quality of sales, as well as due to lower consumer demand.
- Europe revenue dropped -14.3% to $323.5M (-10.2% on a constant currency basis).
- Asia revenue down 1% to $209.1M (+0.5% on a constant currency basis).
- Adjusted gross margin rate improved 210 bps to 63.2%.
- Adjusted operating margin rate up 200 bps to 10.2%.
- Q2 Guidance: Net revenues: down 9% to 10%; Operating margin rate: +40 bps to +60 bps; Tax rate: ~24%.
- FY2018 Guidance: Net revenues: -8% to -9%; Operating margin rate: ~9% to 10.5%; Tax rate: ~24% to 25%; Capex: ~$300M.
- Now read: Ralph Lauren's Problems Are Reflected In Its Price
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