“Ralph Lauren Corporation (NYSE:RL) slid past estimates with its...

“Ralph Lauren Corporation (NYSE:RL) slid past estimates with its FQ4 earnings report as revenue increased 18% to $1.5B on a reported basis and was up 22% in constant currency.Revenue from the North America businessincreased 19% during the quarter to $674M. In retail, comparable store sales in North America were up 21%, with a 27% increase in digital commerce and a 19% increase in brick and mortar stores. North America wholesale revenue was up 1%. Wholesale results included a significantly higher level of negative impact from strategic distribution resets and the transition of Chaps to a licensed business in the relative to the first three quarters of the year, as planned. RL noted that it will lap the majority of those impacts beginning in FY23. North America operating income in the fourth quarter was $90M on both a reported basis and an adjusted basis.Revenue from the European business increased 26% to $467M on a reported basis and increased 34% in constant currency. Comparable store sales were up 77%, with a 145% increase in brick and mortar stores more than offsetting a 2% decrease in digital commerce over a challenging pandemic comparison last year of 79% growth. Europe operating income in the quarter was $91M on a reported basis and $94M on an adjusted basis.Revenue from the Asian business increased 20% to $346M on a reported basis and 26% in constant currency. Comparable store sales in Asia increased 12%, with a 10% increase in our brick and mortar stores and a 46% increase in digital commerce.Adjusted gross margin was 63.3% of sales vs. 62.9% last year. Foreign currency negatively impacted gross margin by 80 basis points in the fourth quarter. Gross margin expansion was primarily driven by AUR growth across all regions as well as favorable channel and geographic mix shifts more than offsetting increased input costs from freight, raw materials and labor.CEO update: "As we continue to navigate a highly dynamic global macroeconomic environment, our growth will be supported by the strength of our brand and multiple engines — from recruiting new high-value consumers to developing high-potential product categories and geographic and channel expansion."