Ralph Lauren (NYSE: RL) reported Q4 EPS of $0.90, $0.30 better than the analyst estimate of $0.60. Revenue for the quarter came in at $1.54 billion versus the consensus estimate of $1.47 billion.

Full Year Fiscal 2024 and First Quarter Outlook:

The Company's outlook is based on its best assessment of the current macroeconomic environment, including inflationary pressures and other consumer spending-related headwinds, foreign currency volatility, the war in Ukraine and COVID-19-related impacts, among others. The full year Fiscal 2024 and first quarter guidance excludes any potential restructuring-related and other net charges that may be incurred in future periods, as described in the "Non-U.S. GAAP Financial Measures" section of this press release.

For Fiscal 2024, the Company expects revenues to increase approximately low-single digits to last year on a constant currency basis. Based on current exchange rates, foreign currency is expected to benefit revenue growth by approximately 20 basis points in Fiscal 2024.

The Company expects operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency, driven by gross margin expansion. Foreign currency is expected to benefit operating margin by approximately 10 basis points in Fiscal 2024. Gross margin expansion is expected to increase about 50 to 100 basis points in constant currency, with stronger AUR and reduced freight costs more than offsetting continued product cost inflation through the majority of the fiscal year. Foreign currency is expected to negatively impact gross margins by approximately 20 basis points in Fiscal 2024.

For the first quarter, the Company expects revenues to be flat to up slightly to last year on a constant currency basis. On a reported basis, including approximately 150 basis points of negative foreign currency impact, revenues are expected to be down slightly to prior year. This outlook includes approximately 220 basis points of negative impact from the normalized timing of spring North America wholesale shipments following last year's supply chain disruptions, which benefited our fourth quarter of Fiscal 2023.

Operating margin for the first quarter is expected to expand approximately 30 to 50 basis points in constant currency, driven by stronger gross margins. Gross margin expansion is expected to be driven by lower freight costs and continued AUR growth partially offset by increased product costs. Foreign currency is expected to negatively impact operating and gross margins by approximately 50 basis points in the first quarter.

The full year Fiscal 2024 tax rate is expected to be in the range of 24% to 25%, assuming a continuation of current tax laws. First quarter of Fiscal 2024 tax rate is expected to be about 23% to 24%.

The Company is planning capital expenditures for Fiscal 2024 of approximately $275 million to $300 million.

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