In the first quarter of fiscal 2023, Ralph Lauren’s net sales grew 8% to $1.5 billion on a reported basis and up 13% in constant currency, ahead of expectations thanks to an increase in sales. strong growth across all regions. Foreign currency negatively impacted revenue growth by about 510 basis points in the first quarter.
North American revenue for the first quarter rose 6% to $701 million. In retail, equivalent store sales in North America increased 5%, with brick-and-mortar stores up 5% and digital commerce up 2%. Wholesale sales in North America increased 5%.
European revenue for the first quarter grew 17% to $416 million on a reported basis and up 28% in constant currency. In the retail sector, equivalent store sales in Europe increased 34%, with brick-and-mortar stores up 45% and digital commerce up 7%.
Asia revenue for the first quarter rose 16% to $334 million in reported terms and 26% in constant currency. Comparable store sales in Asia grew 19%, with our brick-and-mortar stores up 17% and digital commerce up 37%.
Gross profit for the first quarter of fiscal year 2023 was $1.0 billion and gross margin was 67.2%. Adjusted gross margin is 68.0%, 180 basis points lower than the previous year on a reported basis and 80 basis points lower in constant currency, with good prices and promotions more than offset by freight increases aimed at mitigating global supply chain delays, the company said in a press release.
“Our vision of timelessness and an authentic life lived well continues to resonate around the world,” Ralph Lauren, executive chairman and creative director. “From the elegant spirit of Wimbledon to the celebration of the launch of our iconic Polo shirt, our brand is inspiring people to step into their dreams.”
“Our strong first quarter performance underscores the strength of our brand and the dynamics of our strategy around the world, following our multi-year critical reset,” Patrice Louvet, President and CEO. “While the global operating environment remains as volatile as ever, our passionate, talented teams are providing growth opportunities to scale our business with innovation. creation and discipline – from driving high-quality new consumer recruitment to digital expansion and elevating our touchpoints in every region and channel.”
For fiscal year 2023, the company continues to expect constant currency revenue to grow approximately single-digit year over year on a 52-week comparative basis, with our outlook focusing on approx. 8%. Based on prevailing exchange rates, foreign currencies are now expected to negatively impact revenue growth by around 600 basis points in fiscal 2023. On a 53-week comparative basis, revenue growth fiscal year 2023 is expected to be negatively impacted by around 100 basis points due to the absence of 53rd week compared to the previous year.
In the first quarter of fiscal 2023, Ralph Lauren’s net sales grew 8% to $1.5 billion on a reported basis and up 13% in constant currency, ahead of expectations thanks to an increase in sales. strong growth across all regions. Foreign currency negatively impacted revenue growth by about 510 basis points in the first quarter.
