NEW YORK - Ralph Lauren Corporation (NYSE:RL) reported better-than-expected first quarter earnings and revenue on Wednesday, sending shares up 4.2% in pre-market trading.
The luxury lifestyle brand posted adjusted earnings per share of $2.70, surpassing analyst estimates of $2.48. Revenue rose 1.1% year-over-year to $1.51 billion, ahead of the $1.49 billion consensus forecast.
Global direct-to-consumer comparable store sales grew 5% in Q1, driven by positive retail comps across all regions. Europe and Asia led revenue growth, with sales up 6% and 4% respectively on a reported basis.
"We delivered a solid start to the year, with first quarter performance exceeding our expectations on the top- and bottom-line led by our direct-to-consumer and international businesses," said Patrice Louvet, President and CEO.
Gross margin expanded 170 basis points to 70.5%, benefiting from favorable product mix and lower cotton costs. Operating margin increased 90 basis points to 14.3% on an adjusted basis.
For fiscal 2025, Ralph Lauren reaffirmed its outlook for low-single digit revenue growth and 100-120 basis points of operating margin expansion in constant currency.
The company returned approximately $225 million to shareholders through dividends and share repurchases during the quarter. Ralph Lauren's stock was up 4.2% in pre-market trading following the earnings beat.
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