Ralph Lauren Corporation (NYSE:RL) shares are trading higher on Thursday after the company delivered stronger-than-expected fourth-quarter results.
Adjusted earnings per share of $2.80 beat the analyst consensus estimate of $2.54. Quarterly sales of $1.98 billion outpaced the Street view of $1.85 billion.
Revenue rose 17% year over year (Y/Y), or 12% Y/Y in constant currency. Global direct-to-consumer comparable sales grew 17% Y/Y led by positive retail comps across regions and channels, along with mid-teen average unit retail growth
Adjusted gross margin stood at 69.7%, 110 basis points above the prior year. This is driven by favorable geographic, channel, and product mix, AUR growth, and lower cotton costs.
Adjusted operating income was $218 million, and operating margin was 11.0%, 70 basis points above the prior year period.
The company ended the fiscal year with more than $2 billion in cash and short-term investments.
Revenue by Geographies/Business
By region, …