Ralph Lauren (NYSE: RL) reported Q4 EPS of $0.38, $1.11 better than the analyst estimate of ($0.73). Revenue for the quarter came in at $1.29 billion versus the consensus estimate of $1.21 billion.

Full Year Fiscal 2022 and First Quarter Outlook:

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.

The Company expects operating margin for Fiscal 2022 of about 11.0%, an increase of approximately 620 basis points on a reported basis. Operating margin expansion is expected to be driven by operating expense leverage, while gross margin is expected to be down 40 to 60 basis points as mix normalizes. About 150 basis points of the 380 basis points of gross margin expansion in the prior year were driven by unusual COVID-related mix benefits due to significant store closures across regions.

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.

Operating margin for the first quarter is expected in the range of 7.0% to 7.5% with significant operating expense leverage more than offsetting gross margin contraction. Gross margin is expected to contract approximately 575 basis points to last year as the Company laps unusual COVID-related mix benefits from the prior year, when the majority of our stores across North America and Europe were closed.

The full year Fiscal 2022 tax rate is expected to be in the range of 26% to 27%, assuming a continuation of current tax laws. First quarter of Fiscal 2022 tax rate is expected to be about 22% to 24%.

The Company is planning capital expenditures for Fiscal 2022 of approximately $250 million to $275 million.

For earnings history and earnings-related data on Ralph Lauren (RL) click here.