=Ralph Lauren (RL) reported earnings on Thur 20 May 21 (b/o)

 

Ralph Lauren beats by $1.09, beats on revs; co reinstates its regular quarterly cash dividend of $0.6875/share; North America comps +3%

Reports Q4 (Mar) earnings of $0.38 per share, excluding non-recurring items, $1.09 better than the S&P Capital IQ Consensus of ($0.71); revenues rose 1.0% year/year to $1.29 bln vs the $1.21 bln S&P Capital IQ Consensus.

In retail, comparable store sales in North America were up 3%, including a 25% increase in digital commerce partly offset by a 2% decline in brick and mortar stores.

The Company continues to note the ongoing uncertainty and evolving situation surrounding COVID-19 impacting the timing and path of recovery in each market, including the potential for further resurgences of the pandemic across various markets. The full year Fiscal 2022 and first quarter guidance excludes restructuring-related and other charges, as described in the "Non-U.S. GAAP Financial Measures" section of this press release.

For Fiscal 2022, the Company expects constant currency revenues to increase approximately 20% to 25% to last year on a 52-week comparable basis. The 53rd week is expected to contribute approximately 140 basis points to revenue growth. Foreign currency is expected to negatively impact revenue growth by approximately 50 to 70 basis points in Fiscal 2022.

For the first quarter, revenues are expected to increase approximately 140% to 150% in constant currency to last year. Foreign currency is expected to positively impact revenue growth by approximately 250 basis points. This outlook reflects confirmed government-mandated lockdowns and other COVID-related restrictions across several key markets, notably in Europe and Japan. The Company's current outlook could be negatively impacted if government-mandated lockdowns or restrictions are extended or more severe measures are applied. First quarter results include the operating performance of Club Monaco, with the sale expected to be completed by the end of the quarter.

Previously announced actions related to the Fiscal 2021 Strategic Realignment Plan included a reduction of the Company's global workforce in Fiscal 2021, transitioning the Chaps brand to a fully licensed business model, plans to further right-size and consolidate corporate offices and distribution centers and identifying up to 10 stores subject to potential closures through Fiscal 2022. The Company concluded the final stage of the plan with its brand portfolio review. On May 13th, the Company announced a definitive agreement to sell Club Monaco to Regent, L.P. The move will better position Ralph Lauren to focus its resources on its core brands as part of its Next Great Chapter elevation strategy. Club Monaco revenues were approximately $100 million in Fiscal 2021 and $210 million in Fiscal 2020, prior to the pandemic.

The Company also announced that its Board of Directors approved to reinstate its regular quarterly cash dividend on the Company's Common Stock, previously suspended due to the COVID-19 pandemic. The quarterly cash dividend is $0.6875 per share for a total annual dividend amount of $2.75 per share. The next quarterly dividend is payable on July 9, 2021 to shareholders of record at the close of business on June 25, 2021.