10:36 AM EDT, 05/23/2024 (MT Newswires) -- Ralph Lauren ( RL ) offered a downbeat revenue outlook for the first quarter of its 2025 fiscal year, impacted by foreign-exchange headwinds, while the luxury apparel company appointed a new chief financial officer.

Justin Picicci became CFO as part of the company's multi-year strategic succession plan. Picicci, who has been with Ralph Lauren ( RL ) since 2006 and most recently served as its enterprise finance chief, will take over from Jane Nielsen, who will continue to work as chief operating officer of the company.

"Jane and I have been working closely with Justin for years on our ongoing financial strategy," Chief Executive Patrice Louvet said in a statement. "Ralph, the board, and I have the utmost confidence in our ability to, together, deliver strong growth and value creation."

Separately, the luxury retailer said it expects revenue to be "down slightly" on a yearly basis for the ongoing three-month period, including a foreign-currency impact of about 160 basis points. In the prior-year quarter, Ralph Lauren ( RL ) recorded revenue of nearly $1.5 billion, while the current consensus on Capital IQ is for $1.55 billion.

For fiscal 2025, the company projects revenue to increase by a low-single digit on a constant currency basis, centering around 2% and 3%, with foreign exchange negatively affecting growth by about 90 basis points. The Street is looking for revenue of $6.88 billion. Fiscal 2024 revenue rose 3% on a reported and constant currency basis, reaching $6.63 billion.

"Our outlook remains based on our best assessment of the current geopolitical backdrop as well as the macroeconomic environment," Nielsen said during an earnings call, according to a Capital IQ transcript. "This includes inflationary pressures and other consumer spending related headwinds, potential supply chain disruptions and foreign currency volatility, among others."

Revenue rose 2% to $1.57 billion for the quarter ended March 30, in line with the Street's view, despite a roughly 110-basis-point hit from foreign currency. Sales increased 2% in both North America and Europe to $667.7 million and $469.2 million, respectively, while Asia ticked up 1%. Comparable store sales grew 3% in North America, 12% in Europe and 6% in Asia.

The company reported per-share adjusted earnings of $1.71 for the fourth quarter, up from $0.90 the year before, topping analysts' $1.67 estimate. Adjusted gross margin expanded by 480 basis points to 66.6%, driven by lower freight costs, favorable channel and geographic mix shifts, as well as average unit retail growth across all regions, according to Ralph Lauren ( RL ).

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