RALPH LAUREN Reports Record Revenue of USD 1633 Million in Q2 FY2024
November 20, 2023
🌥️Earnings Overview
At the end of FY2024 Q2 on September 30 2023, RALPH LAUREN ($NYSE:RL) reported total revenue of USD 1633.0 million, which was a 3.4% increase compared to the same quarter in the previous year. Net income for the quarter, however, was USD 146.9 million, a decrease of 2.4% from the same quarter of the prior year.
Stock Price
This is up by 3.2% from the previous quarter. The stock opened at $115.1 and closed at $116.5, a 3.2% increase from its previous closing price of 112.9. This jump is attributed to strong sales of their luxury apparel and accessories. The company’s strong performance can be attributed to the global demand for its luxury fashion products, which has been driven by the increased purchasing power of the affluent consumer in both established and emerging markets.
Additionally, their focus on developing new product lines and expanding their presence in e-commerce has contributed to their success. In particular, their digital presence has grown significantly over the past few years, contributing to their revenue growth in this quarter. Ralph Lauren has also recently launched a series of initiatives to improve sustainability practices, which is likely to increase customer loyalty and boost the company’s reputation in the long run. This is especially important in the current climate of stakeholder activism, with an increased focus on environmental and social responsibility from business leaders. Overall, RALPH LAUREN is well-positioned for continued success in the coming quarters, as its strong financial performance and strategic sustainability initiatives will set it up for future growth in the luxury apparel industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ralph Lauren. More…
| Total Revenues | Net Income | Net Margin |
| 6.5k | 527.8 | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ralph Lauren. More…
| Operations | Investing | Financing |
| 752.7 | 10.5 | -516.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ralph Lauren. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.72k | 4.35k | 36.62 |
Key Ratios Snapshot
Some of the financial key ratios for Ralph Lauren are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.4% | 1250.7% | 10.8% |
| FCF Margin | ROE | ROA |
| 8.3% | 18.3% | 6.6% |
Analysis
GoodWhale recently conducted an analysis on the wellbeing of RALPH LAUREN. According to our Star Chart, RALPH LAUREN scored a high health score of 9/10, indicating that the company is capable of sustaining future operations in times of crisis due to their strong cashflows and debt. Additionally, our analysis determined that RALPH LAUREN has achieved moderate revenue or earnings growth, earning it the classification of a ‘rhino’ company. With this classification in mind, investors looking for moderate growth and stability may be interested in RALPH LAUREN. Additionally, while the company is strong in terms of profitability, it is considered of a medium strength in terms of asset and weak in terms of dividend and growth. This information should be taken into consideration when assessing the viability of investing in RALPH LAUREN. More…
Peers
Ralph Lauren Corp is one of the leading companies in the fashion industry. The company has been in business for over 50 years and has built a strong brand name. Ralph Lauren Corp competes with other leading companies such as TSI Holdings Co Ltd, Hanesbrands Inc, and Deckers Outdoor Corp. The company has a strong competitive advantage due to its strong brand name and reputation.
– TSI Holdings Co Ltd ($TSE:3608)
TSI Holdings Co Ltd has a market cap of 37.56B as of 2022, a Return on Equity of 1.85%. TSI Holdings Co Ltd is a Japanese conglomerate with interests in a wide range of businesses, including electronics, automotive components, and logistics. The company has a strong presence in Asia and is looking to expand its operations in the Americas and Europe.
– Hanesbrands Inc ($NYSE:HBI)
Hanesbrands Inc is an American clothing company headquartered in Winston-Salem, North Carolina. It was founded in 1901 and has since grown to become one of the largest clothing manufacturers in the world. The company’s products include underwear, socks, t-shirts, and outerwear. Hanesbrands Inc has a market cap of 2.53B as of 2022 and a Return on Equity of 54.97%. The company’s strong financial performance and favorable outlook continue to attract investors.
– Deckers Outdoor Corp ($NYSE:DECK)
Deckers Outdoor Corp is a footwear company with a market cap of 9.23B as of 2022. The company has a return on equity of 23.34%. Deckers Outdoor Corp designs, manufactures, and markets footwear, apparel, and accessories for casual lifestyle use and for use in light activity and sports. The company’s products include footwear for men, women, and children; and apparel and accessories for men, women, and children, as well as for the action sports and outdoor activities markets.
Summary
RALPH LAUREN‘s total revenue for the quarter ended September 30 2023 was USD 1633.0 million, a 3.4% increase from the same quarter the previous year. Despite this, net income for the quarter was USD 146.9 million, a 2.4% decrease from the same quarter the prior year. Despite this, RALPH LAUREN’s stock price rose the same day, suggesting that investors interpreted the overall performance positively. Investors may want to closely monitor the company’s next quarter’s results to understand the sustainability of this increase in revenue.
Additionally, investors should evaluate the company’s other performance metrics such as operating expenses, margins and free cash flow to determine their future investment decisions.
