For the three months to 2 July, Ralph Lauren posted net revenue of US$1.5bn. Foreign currency negatively impacted revenue growth by approximately 510 basis points in the first quarter.

North America revenue was up 6% on the prior-year period to $701m, Europe revenue increased 17% to $416m on a reported basis and 28% in constant currency. Asia revenue grew 16% on last year to $334m on a reported basis and 26% in constant currency.

Net income in the first quarter of Fiscal 2023, meanwhile, declined to $123m on a reported basis from $165m last time. On an adjusted basis, net income was $135m compared to $172m.

Gross margin was 67.2%. Adjusted gross margin was 68.0%, 180 basis points below the prior year on a reported basis, and down 80 basis points in constant currency, with better pricing and promotions more than offset by increased freight headwinds to mitigate global supply chain delays.

“Our strong first quarter performance underscores the power of our brand and momentum of our strategy around the world, following our significant multi-year reset,” says CEO Patrice Louvet. “While the global operating environment remains as volatile as ever, our talented, passionate teams are delivering on the multiple growth opportunities to scale our business with creativity and discipline — from driving high-quality new consumer recruitment to expanding digital and elevating our touch points in every region and channel.”

Looking ahead, Ralph Lauren expects constant currency revenues to increase approximately high single digits to last year on a 52-week comparable basis, with outlook centered around 8%.

Based on current exchange rates, foreign currency is now expected to negatively impact revenue growth by about 600 basis points in Fiscal 2023. On a 53-week comparable basis, Fiscal 2023 revenue growth is still expected to be negatively impacted by about 100 basis points due to the absence of the 53rd week compared to the prior year.

Ralph Lauren moved to a profit for the full year, with Fiscal 2022 revenues of US$6.22bn exceeding Fiscal 2020 pre-pandemic levels.