In North America, revenue for the first quarter declined by 10 per cent YoY to $632 million. This includes a decrease in retail comparable store sales of 6 per cent, with an 8 per cent decrease in digital commerce and a 5 per cent decrease in brick-and-mortar stores. The North America wholesale revenue saw a 16 per cent decrease, driven by normalised timing of spring shipments following last year's global supply chain disruptions, Ralph Lauren Corporation said in a press release.

In contrast, Europe revenue in Q1 FY24 increased by 8 per cent YoY to $450 million on a reported basis and 7 per cent in constant currency. In retail, comparable store sales in Europe were up 2 per cent, including a 1 per cent increase in physical stores and an 8 per cent boost in digital commerce. Europe's wholesale revenue increased by 12 per cent on a reported basis and 11 per cent in constant currency.

Asia showed promising growth with revenue in the first quarter increasing by 13 per cent YoY to $378 million on a reported basis and 18 per cent in constant currency. Comparable store sales in Asia increased by 13 per cent, marked by a 14 per cent rise in brick-and-mortar stores and an 11 per cent increase in digital commerce.

The gross profit for Q1 FY24 reached $1 billion, with a gross margin of 69 per cent. The adjusted gross margin stood at 68.8 per cent, 80 basis points above the prior year on a reported basis and up 130 basis points in constant currency. Operating expenses were $866 million on a reported basis and $830 million on an adjusted basis, reflecting a 1 per cent increase compared to last year. The adjusted operating expense rate was 55.5 per cent, a slight increase from 55.2 per cent in the prior year.

Operating income was $166 million, with an operating margin of 11.1 per cent. The adjusted operating income was $200 million, and the operating margin was 13.4 per cent, 70 basis points above the prior year. Net income for Q1 FY24 was $132 million, or $1.96 per diluted share. On an adjusted basis, it was $158 million, or $2.34 per diluted share. This compares favourably to the net income of $123 million, or $1.73 per diluted share on a reported basis, and $135 million, or $1.88 per diluted share on an adjusted basis, for the first quarter of fiscal 2023, the release added.

"Our solid first quarter performance highlights the unique power and relevance of our iconic brand with consumers around the world along with our diversified engines of growth, and we are reaffirming our full year outlook," said Patrice Louvet, president and chief executive officer. "As we continue to execute on our Next Great Chapter: Accelerate plan, our teams are staying true to our creative vision while remaining agile and focused on what we can control in the context of a choppy environment."

Fibre2Fashion News Desk (DP)