Ralph Lauren Corporation is an American fashion company that was founded in 1967 by American fashion designer Ralph Lauren.
It's listed on the NYSE and currently trading at around $98.8 (-20.58% compared to same time last year).
In 2021 it has recorded revenues for 4.4 billion $ (28.56% decline from 2020).
Ralph Lauren is an interesting actual case because its increase in inventory of the last 12 months: this could worry investors about the demand trend, but executives say this is a precaution to face the upcoming season demand peak around next Christmas time.
In July 2022, the inventory value stands at $1.2 billion, which means a +47% compared to the prior year.
CEO Patrice Louvet admits it's a risky approach, but they know what they're doing considering Ralph Lauren's projections on its customers' taste and dynamics through the year.
Let's get to the profitability performances: in second quarter of 2022 the company has made $1.49B revenues and $1.0 B of gross profit, while in the second quarter of 2021 it made $1.37B of revenues and $0.96B of gross profit, therefore there is an alignment in the 12-months period economic results.
Financial management generated a free cash flow of $273 mln in March 2021, while in the first quarter of 2022 it amounted to $549 mln, thanks to an operating cash flow activity of $715 mln compared to $380 mln of same time last year.
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