Ralph Lauren (NYSE:RL) shares are in focus today after the luxury lifestyle products provider posted better than anticipated first quarter numbers. Revenue inched up 0.4% year-over-year to $1.5 billion, surpassing estimates by $20 million. Moreover, EPS at $2.34 raced past estimates by a margin of $0.20.
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During the quarter, average unit retail (AUR) increased by 15% across the company’s direct-to-consumer network. Revenue in the North America vertical dropped by 10% to $632 million, with comparable store sales declining by 6%. In Europe, however, revenue rose by 8% to $450 million, and comparable store sales rose by 2%.
Further, the company saw a 13% jump in revenue in Asia to $378 million, with comparable store sales rising by 13%. Looking ahead, for the full-year 2024, the company expects revenue to rise in the low single digits with a 30 to 50 basis point expansion in operating margin.
Capital expenditures for the year are now anticipated between $250 million and $275 million.
Overall, the Street has a $137.80 consensus price target on RL alongside a Moderate Buy consensus rating. Shares of the company have surged nearly 33% over the past 52 weeks.
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