Ralph Lauren Reports Second Quarter Fiscal 2025 Results Ahead of Expectations and Raises Full Year Outlook
Ralph Lauren (NYSE:RL) reported strong Q2 FY2025 results, with revenue increasing 6% to $1.7 billion on both reported and constant currency basis. The company achieved adjusted earnings per share of $2.54, up 21% year-over-year. Global direct-to-consumer comparable store sales grew 10%, with positive retail performance across all regions. Revenue growth was led by Asia (+9%) and Europe (+7%), while North America showed 3% growth. The company maintained a strong balance sheet with $1.7 billion in cash and raised its full-year fiscal 2025 revenue and adjusted operating margin expansion outlook.
Ralph Lauren (NYSE:RL) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2025, con un aumento del fatturato del 6% a 1,7 miliardi di dollari sia in base ai dati riportati che a quelli a valuta costante. L'azienda ha raggiunto un utile per azione rettificato di 2,54 dollari, in crescita del 21% rispetto all'anno precedente. Le vendite comparabili nei negozi diretti al consumatore a livello globale sono cresciute del 10%, con una performance retail positiva in tutte le regioni. La crescita dei ricavi è stata guidata dall'Asia (+9%) e dall'Europa (+7%), mentre il Nord America ha mostrato una crescita del 3%. L'azienda ha mantenuto un forte bilancio con 1,7 miliardi di dollari in contanti e ha rivisto al rialzo le previsioni per il fatturato dell'intero anno fiscale 2025 e l'espansione del margine operativo rettificato.
Ralph Lauren (NYSE:RL) informó resultados sólidos para el segundo trimestre del año fiscal 2025, con un aumento del 6% en los ingresos a 1.7 mil millones de dólares tanto en términos reportados como en moneda constante. La compañía logró ganancias por acción ajustadas de 2.54 dólares, un aumento del 21% en comparación con el año anterior. Las ventas comparables en tiendas directas al consumidor a nivel global crecieron un 10%, con un rendimiento minorista positivo en todas las regiones. El crecimiento de los ingresos fue liderado por Asia (+9%) y Europa (+7%), mientras que América del Norte mostró un crecimiento del 3%. La compañía mantuvo un balance sólido con 1.7 mil millones de dólares en efectivo y elevó sus perspectivas de ingresos para el año fiscal 2025 y la expansión del margen operativo ajustado.
래폴 로렌 (NYSE:RL)은 2025 회계연도 2분기 실적을 발표하며 매출이 6% 증가한 17억 달러에 달했다고 보고했습니다. 이는 보고된 기준과 고정 환율 기준 모두에서의 수치입니다. 회사는 주당 조정 이익이 2.54 달러로, 전년 대비 21% 증가했다고 밝혔습니다. 전 세계적으로 소비자 직접 수익이 있는 상점의 매출은 10% 성장했고, 모든 지역에서 긍정적인 소매 성과를 기록했습니다. 매출 성장은 아시아(+9%)와 유럽(+7%)이 이끌었고, 북미는 3% 성장했습니다. 회사는 17억 달러의 현금을 보유하고 있으며, 2025 회계연도 전체 매출 및 조정 운영 마진 확장 전망을 상향 조정했습니다.
Ralph Lauren (NYSE:RL) a annoncé de solides résultats pour le deuxième trimestre de l'exercice fiscal 2025, avec des revenus en hausse de 6% à 1,7 milliard USD, tant en base rapportée qu'en monnaie constante. L'entreprise a enregistré un bénéfice par action ajusté de 2,54 USD, en hausse de 21% par rapport à l'année précédente. Les ventes comparables en magasins directs au consommateur ont augmenté de 10%, avec des performances de détail positives dans toutes les régions. La croissance des revenus a été menée par l'Asie (+9%) et l'Europe (+7%), tandis que l'Amérique du Nord a affiché une hausse de 3%. L'entreprise a maintenu un solide bilan avec 1,7 milliard USD en liquidités et a relevé ses prévisions de revenus pour l'ensemble de l'exercice fiscal 2025 et l'expansion de sa marge opérationnelle ajustée.
Ralph Lauren (NYSE:RL) berichtete über starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, mit einem Umsatzanstieg von 6% auf 1,7 Milliarden US-Dollar sowohl auf Basis der berichteten als auch der konstanten Währung. Das Unternehmen erzielte einen bereinigten Gewinn pro Aktie von 2,54 US-Dollar, was einem Anstieg von 21% im Vergleich zum Vorjahr entspricht. Der Umsatz in globalen Direct-to-Consumer Vergleichsgeschäften wuchs um 10%, mit einer positiven Einzelhandelsentwicklung in allen Regionen. Das Umsatzwachstum wurde von Asien (+9%) und Europa (+7%) angeführt, während Nordamerika ein Wachstum von 3% zeigte. Das Unternehmen hielt eine starke Bilanz mit 1,7 Milliarden US-Dollar in Bargeld und hob seine Prognosen für den Gesamtumsatz und die Anpassung der Betriebsmargen für das Geschäftsjahr 2025 an.
- Revenue increased 6% to $1.7 billion
- Adjusted EPS grew 21% to $2.54
- Global direct-to-consumer comparable store sales up 10%
- Average unit retail increased 10%
- Adjusted operating margin expanded 90 basis points
- Strong cash position of $1.7 billion
- Inventory reduced by 6% year-over-year
- Raised full-year guidance
- North America wholesale revenue decreased 3%
- Digital commerce declined 2% in North America
- Higher marketing investments impacting operating expense rate
Insights
Strong Q2 results showcase Ralph Lauren's successful execution of its premium positioning strategy. Revenue grew
Notable financial highlights include adjusted operating margin expansion of 90 basis points to
The company's strategic focus on key growth markets and premium positioning is yielding results. Strong performance across all regions, particularly in Europe with
Consumer engagement metrics are robust with 1.5 million new direct-to-consumer customers and increased brand consideration. The raised full-year guidance, despite macro challenges, signals management's confidence in holiday season performance and long-term growth trajectory.
-
Second Quarter Revenue Increased
6% on Both a Reported and Constant Currency Basis, Ahead of Expectations Led byEurope andAsia
-
Global Direct-to-Consumer Comparable Store Sales Grew
10% , Driven by Positive Retail Comps Across All Regions
- Adjusted Gross and Operating Margin Expansion Exceeded Our Outlook, with Brand Elevation and Expense Discipline More than Offsetting Planned Investments in Marketing and Key City Expansion
-
Maintained Healthy Balance Sheet Including
in Cash and Short-Term Investments and Well Positioned Inventories Ahead of Holiday While Mitigating Global Supply Chain Disruptions$1.7 Billion
-
Returned Approximately
to Shareholders Through Our Dividend and Repurchase of Class A Common Stock This Fiscal Year-to-Date$375 Million
- Raised Full Year Fiscal 2025 Revenue and Adjusted Operating Margin Expansion Outlook, Reflecting Confidence in Brand Momentum and Business Trends
"A spirit of optimism and the easy elegance of timeless style -- these are elements that have come to define our brand," said Ralph Lauren, Executive Chairman and Chief Creative Officer. "This summer was a celebration of all that we cherish, and as we turn our focus to holiday, we will continue inspiring people around the world to come together and step into their dreams."
"Our teams are executing well on our long-term strategy, injecting energy and excitement behind our storied brand through what continues to be a choppy global operating environment," said Patrice Louvet, President and Chief Executive Officer. "Our strong business performance across every geography this quarter underscores the resilience of our diversified growth drivers and our elevated consumer base, giving us confidence to take up our financial outlook for the full fiscal year ahead of the all-important holiday season."
Key Achievements in Second Quarter Fiscal 2025
We delivered the following highlights across our Next Great Chapter: Accelerate priorities in the second quarter of Fiscal 2025:
-
Elevate and Energize Our Lifestyle Brand
- Drove continued momentum in new customer acquisition and loyalty with 1.5 million new consumers in our direct-to-consumer businesses, increases in brand consideration and net promoter scores, and more than 62 million social media followers, a low double-digit increase to last year
-
Created powerful, authentic connections with consumers through key moments, notably: our 2024 Paris Olympics campaign as official outfitter of Team
USA ; iconic sponsorships of Wimbledon and theU.S. Open Tennis Championships; and our Spring 2025 World of Ralph Lauren fashion show, inspired by the natural beauty and quiet sophistication of coastal living in the Hamptons
-
Drive the Core and Expand for More
- Drove continued momentum in our Core business, up low double-digits, along with our high-potential categories (Women's Apparel, Outerwear, and Handbags), which increased mid-teens to last year in constant currency and outpaced total company growth
-
Product highlights this quarter included: our
U.S. Open capsule, featuring modern sportswear inspired by the tournament's bold energy and timeless Polo style; "Denim Daydream," the 3rd drop in our Artist in Residence collaboration with Naiomi Glasses; and our Pink Pony collection, supporting Ralph Lauren's longstanding commitment to cancer care and research -
Increased average unit retail ("AUR") by
10% across our direct-to-consumer network in the second quarter, above expectations and on top of a9% increase last year, reflecting continued mix shift toward our full-price businesses and the durability of our multi-pronged elevation approach
-
Win in Key Cities with Our Consumer Ecosystem
-
By geography, revenue growth was led by
Asia , up9% on a reported basis and10% in constant currency, exceeding our expectations withChina up low-teens on a reported and constant currency basis.Europe sales grew7% on a reported basis and6% in constant currency driven by continued brand momentum across the region.North America inflected to3% growth as stronger direct-to-consumer performance more than offset a modest planned decline in wholesale -
Continued to expand and scale our key city ecosystems with the opening of 25 new owned and partnered stores in the second quarter. Key store openings during the period included:
Tulsa, Oklahoma ; Giverny,France ; andShenzhen, China
-
By geography, revenue growth was led by
Our business is supported by our fortress foundation, which we define through our five key enablers, including: our people and culture, best-in-class digital technology and analytics, superior operational capabilities, a powerful balance sheet, and leadership in citizenship and sustainability.
Second Quarter Fiscal 2025 Income Statement Review
Net Revenue. In the second quarter of Fiscal 2025, revenue increased
Revenue performance for the Company's reportable segments in the second quarter compared to the prior year period was as follows:
-
North America Revenue.
North America revenue in the second quarter increased3% to . In retail, comparable store sales in$739 million North America increased6% , with a9% increase in brick and mortar stores more than offsetting a2% decrease in digital commerce.North America wholesale revenue decreased3% , in-line with our outlook.
-
Europe Revenue.
Europe revenue in the second quarter increased7% to on a reported basis and$566 million 6% in constant currency. In retail, comparable store sales inEurope increased15% , significantly exceeding our expectations, with a15% increase in brick and mortar stores and a14% increase in digital commerce.Europe wholesale revenue increased2% to prior year on a reported basis and increased slightly on a constant currency basis, with stronger re-order trends more than offsetting a timing shift of receipts into the second half of the year.
-
Asia Revenue.
Asia revenue in the second quarter increased9% to on a reported basis and$380 million 10% in constant currency, ahead of our expectations. Comparable store sales inAsia increased11% , with a10% increase in our brick and mortar stores and a19% increase in digital commerce.
Gross Profit. Gross profit for the second quarter of Fiscal 2025 was
Operating Expenses. Operating expenses in the second quarter of Fiscal 2025 were
Operating Income. Operating income for the second quarter of Fiscal 2025 was
-
North America Operating Income.
North America operating income in the second quarter was on both a reported and adjusted basis. Adjusted$122 million North America operating margin was16.5% , up 140 basis points to last year.
-
Europe Operating Income.
Europe operating income in the second quarter was on both a reported and adjusted basis. Adjusted$146 million Europe operating margin was25.8% , up 70 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 20 basis points in the second quarter.
-
Asia Operating Income.
Asia operating income in the second quarter was on both a reported and adjusted basis. Adjusted$86 million Asia operating margin was22.7% , up 310 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 80 basis points in the second quarter.
Net Income and EPS. Net income in the second quarter of Fiscal 2025 was
In the second quarter of Fiscal 2025, the Company had an effective tax rate of approximately
Balance Sheet and Cash Flow Review
The Company ended the second quarter of Fiscal 2025 with
Inventory at the end of the second quarter of Fiscal 2025 was
The Company repurchased approximately
Full Year Fiscal 2025 and Third Quarter Outlook
The Company's outlook is based on its best assessment of the current geopolitical and macroeconomic environment, including inflationary pressures, other consumer spending-related headwinds, global supply chain disruptions and foreign currency volatility, among others. The full year Fiscal 2025 and third quarter guidance excludes any potential restructuring-related and other net charges that may be incurred in future periods, as described in the "Non-
For Fiscal 2025, the Company now expects constant currency revenues to increase in a range of approximately
The Company now expects operating margin for Fiscal 2025 to expand approximately 110 to 130 basis points in constant currency, driven by gross margin expansion and operating expense leverage. Gross margin is expected to increase approximately 80 to 120 basis points in constant currency. Foreign currency is expected to negatively impact gross and operating margins by approximately 20 basis points.
For the third quarter, the Company expects constant currency revenues to grow approximately
Operating margin for the third quarter is expected to expand approximately 100 to 140 basis points in constant currency, driven by gross margin expansion. Foreign currency is expected to have a roughly neutral impact on gross and operating margins in the third quarter.
The Company's full year Fiscal 2025 tax rate is now expected to be in the range of approximately
The Company expects capital expenditures for Fiscal 2025 of approximately
Conference Call
As previously announced, the Company will host a conference call and live online webcast today, Thursday, November 7, 2024, at 9:00 A.M. Eastern. Listeners may access a live broadcast of the conference call on the Company investor relations website at http://investor.ralphlauren.com or by dialing 517-623-4963 or 800-857-5209. To access the conference call, listeners should dial in by 8:45 A.M. Eastern and request to be connected to the Ralph Lauren Second Quarter 2025 conference call.
An online archive of the broadcast will be available by accessing the Company's investor relations website at http://investor.ralphlauren.com. A telephone replay of the call will be available from 12:00 P.M. Eastern, Thursday, November 7, 2024 through 6:00 P.M. Eastern, Thursday, November 14, 2024 by dialing 203-369-3811 or 800-568-3705 and entering passcode 2719.
ABOUT RALPH LAUREN
Ralph Lauren Corporation (NYSE:RL) is a global leader in the design, marketing and distribution of luxury lifestyle products in five categories: apparel, footwear & accessories, home, fragrances, and hospitality. For more than 50 years, Ralph Lauren has sought to inspire the dream of a better life through authenticity and timeless style. Its reputation and distinctive image have been developed across a wide range of products, brands, distribution channels and international markets. The Company's brand names — which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children and Chaps, among others — constitute one of the world's most widely recognized families of consumer brands. For more information, go to https://investor.ralphlauren.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made from time to time by representatives of the Company, may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding our current expectations about the Company's future operating results and financial condition, the implementation and results of our strategic plans and initiatives, store openings and closings, capital expenses, our plans regarding our quarterly cash dividend and Class A common stock repurchase programs, and our ability to meet citizenship and sustainability goals. Forward-looking statements are based on current expectations and are indicated by words or phrases such as "aim," "anticipate," "outlook," "estimate," "ensure," "commit," "expect," "project," "believe," "envision," "goal," "target," "can," "will," and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance, or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. The factors that could cause actual results to materially differ include, among others: the loss of key personnel, including Mr. Ralph Lauren, or other changes in our executive and senior management team or to our operating structure, including any potential changes resulting from the execution of our long-term growth strategy, and our ability to effectively transfer knowledge and maintain adequate controls and procedures during periods of transition; the potential impact to our business resulting from inflationary pressures, including increases in the costs of raw materials, transportation, wages, healthcare, and other benefit-related costs; the impact of economic, political, and other conditions on us, our customers, suppliers, vendors, and lenders, including potential business disruptions related to ongoing military conflicts taking place in various parts of the world, most notably the
RALPH LAUREN CORPORATION |
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CONSOLIDATED BALANCE SHEETS |
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Prepared in accordance with |
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(Unaudited) |
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|
|
|
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September 28,
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March 30,
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September 30,
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(millions) |
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ASSETS |
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|
|
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|
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Current assets: |
|
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
1,355.0 |
|
|
$ |
1,662.2 |
|
|
$ |
1,381.8 |
|
Short-term investments |
|
|
334.7 |
|
|
|
121.0 |
|
|
|
85.1 |
|
Accounts receivable, net of allowances |
|
|
517.9 |
|
|
|
446.5 |
|
|
|
461.1 |
|
Inventories |
|
|
1,127.9 |
|
|
|
902.2 |
|
|
|
1,195.3 |
|
Income tax receivable |
|
|
56.2 |
|
|
|
56.0 |
|
|
|
50.0 |
|
Prepaid expenses and other current assets |
|
|
212.9 |
|
|
|
171.9 |
|
|
|
221.2 |
|
Total current assets |
|
|
3,604.6 |
|
|
|
3,359.8 |
|
|
|
3,394.5 |
|
Property and equipment, net |
|
|
832.1 |
|
|
|
850.4 |
|
|
|
875.6 |
|
Operating lease right-of-use assets |
|
|
1,013.9 |
|
|
|
1,014.6 |
|
|
|
1,088.2 |
|
Deferred tax assets |
|
|
281.1 |
|
|
|
288.3 |
|
|
|
262.7 |
|
Goodwill |
|
|
900.6 |
|
|
|
888.1 |
|
|
|
883.0 |
|
Intangible assets, net |
|
|
69.3 |
|
|
|
75.7 |
|
|
|
82.2 |
|
Other non-current assets |
|
|
98.4 |
|
|
|
125.7 |
|
|
|
136.9 |
|
Total assets |
|
$ |
6,800.0 |
|
|
$ |
6,602.6 |
|
|
$ |
6,723.1 |
|
|
|
|
|
|
|
|
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LIABILITIES AND EQUITY |
|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
||||||
Current portion of long-term debt |
|
$ |
399.3 |
|
|
$ |
— |
|
|
$ |
— |
|
Accounts payable |
|
|
495.7 |
|
|
|
332.2 |
|
|
|
460.1 |
|
Current income tax payable |
|
|
61.4 |
|
|
|
79.8 |
|
|
|
56.3 |
|
Current operating lease liabilities |
|
|
240.3 |
|
|
|
245.5 |
|
|
|
270.9 |
|
Accrued expenses and other current liabilities |
|
|
895.7 |
|
|
|
809.7 |
|
|
|
823.1 |
|
Total current liabilities |
|
|
2,092.4 |
|
|
|
1,467.2 |
|
|
|
1,610.4 |
|
Long-term debt |
|
|
742.2 |
|
|
|
1,140.5 |
|
|
|
1,139.5 |
|
Long-term finance lease liabilities |
|
|
246.0 |
|
|
|
256.1 |
|
|
|
266.9 |
|
Long-term operating lease liabilities |
|
|
1,020.1 |
|
|
|
1,014.0 |
|
|
|
1,079.0 |
|
Non-current income tax payable |
|
|
— |
|
|
|
42.2 |
|
|
|
42.2 |
|
Non-current liability for unrecognized tax benefits |
|
|
132.7 |
|
|
|
118.7 |
|
|
|
100.7 |
|
Other non-current liabilities |
|
|
124.3 |
|
|
|
113.6 |
|
|
|
115.2 |
|
Total liabilities |
|
|
4,357.7 |
|
|
|
4,152.3 |
|
|
|
4,353.9 |
|
Equity: |
|
|
|
|
|
|
||||||
Common stock |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
1.3 |
|
Additional paid-in-capital |
|
|
2,983.8 |
|
|
|
2,923.8 |
|
|
|
2,875.0 |
|
Retained earnings |
|
|
7,265.4 |
|
|
|
7,051.6 |
|
|
|
6,779.7 |
|
Treasury stock, Class A, at cost |
|
|
(7,582.5 |
) |
|
|
(7,250.3 |
) |
|
|
(7,024.0 |
) |
Accumulated other comprehensive loss |
|
|
(225.7 |
) |
|
|
(276.1 |
) |
|
|
(262.8 |
) |
Total equity |
|
|
2,442.3 |
|
|
|
2,450.3 |
|
|
|
2,369.2 |
|
Total liabilities and equity |
|
$ |
6,800.0 |
|
|
$ |
6,602.6 |
|
|
$ |
6,723.1 |
|
|
|
|
|
|
|
|
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Net Cash & Short-term Investments(a) |
|
$ |
548.2 |
|
|
$ |
642.7 |
|
|
$ |
327.4 |
|
Cash & Short-term Investments |
|
|
1,689.7 |
|
|
|
1,783.2 |
|
|
|
1,466.9 |
|
___________________ | ||
(a) | Calculated as cash and cash equivalents, plus short-term investments, less total debt. |
RALPH LAUREN CORPORATION |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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Prepared in accordance with |
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(Unaudited) |
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|
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Three Months Ended |
|
Six Months Ended |
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|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
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|
|
(millions, except per share data) |
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Net revenues |
|
$ |
1,726.0 |
|
|
$ |
1,633.0 |
|
|
$ |
3,238.2 |
|
|
$ |
3,129.5 |
|
Cost of goods sold |
|
|
(570.3 |
) |
|
|
(562.9 |
) |
|
|
(1,016.7 |
) |
|
|
(1,027.4 |
) |
Gross profit |
|
|
1,155.7 |
|
|
|
1,070.1 |
|
|
|
2,221.5 |
|
|
|
2,102.1 |
|
Selling, general, and administrative expenses |
|
|
(958.4 |
) |
|
|
(896.3 |
) |
|
|
(1,808.3 |
) |
|
|
(1,726.3 |
) |
Restructuring and other charges, net |
|
|
(18.4 |
) |
|
|
(9.3 |
) |
|
|
(25.8 |
) |
|
|
(44.9 |
) |
Total other operating expenses, net |
|
|
(976.8 |
) |
|
|
(905.6 |
) |
|
|
(1,834.1 |
) |
|
|
(1,771.2 |
) |
Operating income |
|
|
178.9 |
|
|
|
164.5 |
|
|
|
387.4 |
|
|
|
330.9 |
|
Interest expense |
|
|
(11.4 |
) |
|
|
(10.0 |
) |
|
|
(22.3 |
) |
|
|
(20.0 |
) |
Interest income |
|
|
17.9 |
|
|
|
15.8 |
|
|
|
38.0 |
|
|
|
31.5 |
|
Other income (expense), net |
|
|
2.7 |
|
|
|
(4.8 |
) |
|
|
1.6 |
|
|
|
(6.3 |
) |
Income before income taxes |
|
|
188.1 |
|
|
|
165.5 |
|
|
|
404.7 |
|
|
|
336.1 |
|
Income tax provision |
|
|
(40.2 |
) |
|
|
(18.6 |
) |
|
|
(88.2 |
) |
|
|
(57.1 |
) |
Net income |
|
$ |
147.9 |
|
|
$ |
146.9 |
|
|
$ |
316.5 |
|
|
$ |
279.0 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
2.36 |
|
|
$ |
2.24 |
|
|
$ |
5.03 |
|
|
$ |
4.24 |
|
Diluted |
|
$ |
2.31 |
|
|
$ |
2.19 |
|
|
$ |
4.93 |
|
|
$ |
4.15 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
62.6 |
|
|
|
65.6 |
|
|
|
62.9 |
|
|
|
65.7 |
|
Diluted |
|
|
63.9 |
|
|
|
67.2 |
|
|
|
64.3 |
|
|
|
67.3 |
|
Dividends declared per share |
|
$ |
0.825 |
|
|
$ |
0.75 |
|
|
$ |
1.65 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
RALPH LAUREN CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
Prepared in accordance with |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||
|
|
September 28,
|
|
September 30,
|
||||
|
|
(millions) |
||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
316.5 |
|
|
$ |
279.0 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization expense |
|
|
110.3 |
|
|
|
116.8 |
|
Deferred income tax expense |
|
|
19.4 |
|
|
|
6.1 |
|
Stock-based compensation expense |
|
|
60.0 |
|
|
|
50.7 |
|
Bad debt expense |
|
|
2.1 |
|
|
|
0.3 |
|
Other non-cash charges (benefits) |
|
|
(3.7 |
) |
|
|
16.3 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(63.4 |
) |
|
|
(26.5 |
) |
Inventories |
|
|
(203.6 |
) |
|
|
(151.0 |
) |
Prepaid expenses and other current assets |
|
|
(40.4 |
) |
|
|
(37.8 |
) |
Accounts payable and accrued liabilities |
|
|
225.8 |
|
|
|
154.7 |
|
Income tax receivables and payables |
|
|
(49.3 |
) |
|
|
(41.8 |
) |
Operating lease right-of-use assets and liabilities, net |
|
|
(0.5 |
) |
|
|
(18.2 |
) |
Other balance sheet changes |
|
|
1.3 |
|
|
|
(5.0 |
) |
Net cash provided by operating activities |
|
|
374.5 |
|
|
|
343.6 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(75.1 |
) |
|
|
(82.4 |
) |
Purchases of investments |
|
|
(496.5 |
) |
|
|
(158.6 |
) |
Proceeds from sales and maturities of investments |
|
|
290.8 |
|
|
|
108.1 |
|
Other investing activities |
|
|
1.0 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(279.8 |
) |
|
|
(132.9 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Payments of finance lease obligations |
|
|
(10.8 |
) |
|
|
(11.2 |
) |
Payments of dividends |
|
|
(98.9 |
) |
|
|
(98.2 |
) |
Repurchases of common stock, including shares surrendered for tax withholdings |
|
|
(330.2 |
) |
|
|
(225.7 |
) |
Net cash used in financing activities |
|
|
(439.9 |
) |
|
|
(335.1 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
36.8 |
|
|
|
(23.9 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(308.4 |
) |
|
|
(148.3 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,670.6 |
|
|
|
1,536.9 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
1,362.2 |
|
|
$ |
1,388.6 |
|
RALPH LAUREN CORPORATION |
||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
|
|
(millions) |
||||||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
739.5 |
|
|
$ |
717.8 |
|
|
$ |
1,347.7 |
|
|
$ |
1,349.5 |
|
|
|
|
565.9 |
|
|
|
526.8 |
|
|
|
1,045.0 |
|
|
|
977.3 |
|
|
|
|
380.2 |
|
|
|
348.4 |
|
|
|
771.1 |
|
|
|
725.9 |
|
Other non-reportable segments |
|
|
40.4 |
|
|
|
40.0 |
|
|
|
74.4 |
|
|
|
76.8 |
|
Total net revenues |
|
$ |
1,726.0 |
|
|
$ |
1,633.0 |
|
|
$ |
3,238.2 |
|
|
$ |
3,129.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
121.9 |
|
|
$ |
110.2 |
|
|
$ |
241.7 |
|
|
$ |
235.5 |
|
|
|
|
145.9 |
|
|
|
132.4 |
|
|
|
266.5 |
|
|
|
229.6 |
|
|
|
|
86.3 |
|
|
|
68.4 |
|
|
|
193.5 |
|
|
|
161.7 |
|
Other non-reportable segments |
|
|
33.5 |
|
|
|
34.1 |
|
|
|
63.1 |
|
|
|
67.9 |
|
|
|
|
387.6 |
|
|
|
345.1 |
|
|
|
764.8 |
|
|
|
694.7 |
|
Unallocated corporate expenses |
|
|
(190.3 |
) |
|
|
(171.3 |
) |
|
|
(351.6 |
) |
|
|
(318.9 |
) |
Unallocated restructuring and other charges, net |
|
|
(18.4 |
) |
|
|
(9.3 |
) |
|
|
(25.8 |
) |
|
|
(44.9 |
) |
Total operating income |
|
$ |
178.9 |
|
|
$ |
164.5 |
|
|
$ |
387.4 |
|
|
$ |
330.9 |
|
RALPH LAUREN CORPORATION |
||||||||||||||
CONSTANT CURRENCY FINANCIAL MEASURES |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Comparable Store Sales Data |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
September 28, 2024 |
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
||||||
|
|
% Change |
|
% Change |
|
|
|
|
||||||
|
|
Constant Currency |
|
Constant Currency |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
(2 |
%) |
|
|
(3 |
%) |
|
|
|
|
||
Brick and mortar |
|
|
9 |
% |
|
|
6 |
% |
|
|
|
|
||
Total |
|
|
6 |
% |
|
|
4 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
14 |
% |
|
|
14 |
% |
|
|
|
|
||
Brick and mortar |
|
|
15 |
% |
|
|
11 |
% |
|
|
|
|
||
Total |
|
|
15 |
% |
|
|
12 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
19 |
% |
|
|
20 |
% |
|
|
|
|
||
Brick and mortar |
|
|
10 |
% |
|
|
9 |
% |
|
|
|
|
||
Total |
|
|
11 |
% |
|
|
10 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Total Ralph Lauren Corporation |
|
|
10 |
% |
|
|
7 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Operating Segment Net Revenues Data |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
% Change |
||||||||||
|
|
September 28,
|
|
September 30,
|
|
As Reported |
|
Constant Currency |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
739.5 |
|
|
$ |
717.8 |
|
|
3.0 |
% |
|
3.1 |
% |
|
|
|
565.9 |
|
|
|
526.8 |
|
|
7.4 |
% |
|
6.3 |
% |
|
|
|
380.2 |
|
|
|
348.4 |
|
|
9.1 |
% |
|
10.4 |
% |
Other non-reportable segments |
|
|
40.4 |
|
|
|
40.0 |
|
|
0.9 |
% |
|
0.9 |
% |
Net revenues |
|
$ |
1,726.0 |
|
|
$ |
1,633.0 |
|
|
5.7 |
% |
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended |
|
% Change |
||||||||||
|
|
September 28,
|
|
September 30,
|
|
As Reported |
|
Constant Currency |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
1,347.7 |
|
|
$ |
1,349.5 |
|
|
(0.1 |
%) |
|
(0.1 |
%) |
|
|
|
1,045.0 |
|
|
|
977.3 |
|
|
6.9 |
% |
|
6.7 |
% |
|
|
|
771.1 |
|
|
|
725.9 |
|
|
6.2 |
% |
|
9.9 |
% |
Other non-reportable segments |
|
|
74.4 |
|
|
|
76.8 |
|
|
(3.1 |
%) |
|
(3.1 |
%) |
Net revenues |
|
$ |
3,238.2 |
|
|
$ |
3,129.5 |
|
|
3.5 |
% |
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
RALPH LAUREN CORPORATION |
||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
September 28, 2024 |
|
September 30, 2023 |
||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
467.3 |
|
$ |
272.9 |
|
$ |
356.2 |
|
$ |
— |
|
$ |
1,096.4 |
|
$ |
437.8 |
|
$ |
238.4 |
|
$ |
318.1 |
|
$ |
— |
|
$ |
994.3 |
Wholesale |
|
|
272.2 |
|
|
293.0 |
|
|
24.0 |
|
|
— |
|
|
589.2 |
|
|
280.0 |
|
|
288.4 |
|
|
30.3 |
|
|
— |
|
|
598.7 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
40.4 |
|
|
40.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
40.0 |
|
|
40.0 |
Net revenues |
|
$ |
739.5 |
|
$ |
565.9 |
|
$ |
380.2 |
|
$ |
40.4 |
|
$ |
1,726.0 |
|
$ |
717.8 |
|
$ |
526.8 |
|
$ |
348.4 |
|
$ |
40.0 |
|
$ |
1,633.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months Ended |
||||||||||||||||||||||||||||
|
|
September 28, 2024 |
|
September 30, 2023 |
||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
884.0 |
|
$ |
518.0 |
|
$ |
727.0 |
|
$ |
— |
|
$ |
2,129.0 |
|
$ |
848.8 |
|
$ |
465.1 |
|
$ |
670.2 |
|
$ |
— |
|
$ |
1,984.1 |
Wholesale |
|
|
463.7 |
|
|
527.0 |
|
|
44.1 |
|
|
— |
|
|
1,034.8 |
|
|
500.7 |
|
|
512.2 |
|
|
55.7 |
|
|
— |
|
|
1,068.6 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
74.4 |
|
|
74.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
76.8 |
|
|
76.8 |
Net revenues |
|
$ |
1,347.7 |
|
$ |
1,045.0 |
|
$ |
771.1 |
|
$ |
74.4 |
|
$ |
3,238.2 |
|
$ |
1,349.5 |
|
$ |
977.3 |
|
$ |
725.9 |
|
$ |
76.8 |
|
$ |
3,129.5 |
RALPH LAUREN CORPORATION |
||||
GLOBAL RETAIL STORE NETWORK |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
September 28,
|
|
September 30,
|
|
|
|
|
|
Ralph Lauren Stores |
|
50 |
|
49 |
Outlet Stores |
|
178 |
|
187 |
Total Directly Operated Stores |
|
228 |
|
236 |
Concessions |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
Ralph Lauren Stores |
|
44 |
|
44 |
Outlet Stores |
|
60 |
|
60 |
Total Directly Operated Stores |
|
104 |
|
104 |
Concessions |
|
27 |
|
27 |
|
|
|
|
|
|
|
|
|
|
Ralph Lauren Stores |
|
144 |
|
128 |
Outlet Stores |
|
94 |
|
96 |
Total Directly Operated Stores |
|
238 |
|
224 |
Concessions |
|
654 |
|
682 |
|
|
|
|
|
Global Directly Operated Stores and Concessions |
|
|
|
|
Ralph Lauren Stores |
|
238 |
|
221 |
Outlet Stores |
|
332 |
|
343 |
Total Directly Operated Stores |
|
570 |
|
564 |
Concessions |
|
682 |
|
710 |
|
|
|
|
|
Global Licensed Partner Stores |
|
|
|
|
Total Licensed Partner Stores |
|
106 |
|
99 |
RALPH LAUREN CORPORATION |
|
||||||||||||||||||||
RECONCILIATION OF NON- |
|
||||||||||||||||||||
(Unaudited) |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
||||||||||||||||||
|
|
September 28, 2024 |
|
||||||||||||||||||
|
|
As Reported |
|
Total Adjustments(a)(b) |
|
As Adjusted (Reported $) |
|
Foreign Currency Impact |
|
As Adjusted (Constant $) |
|
||||||||||
|
|
(millions, except per share data) |
|
||||||||||||||||||
Net revenues |
|
$ |
1,726.0 |
|
|
$ |
— |
|
|
$ |
1,726.0 |
|
|
$ |
(0.8 |
) |
|
$ |
1,725.2 |
|
|
Gross profit |
|
|
1,155.7 |
|
|
|
— |
|
|
|
1,155.7 |
|
|
|
2.3 |
|
|
|
1,158.0 |
|
|
Gross profit margin |
|
|
67.0 |
% |
|
|
|
|
67.0 |
% |
|
|
|
|
67.1 |
% |
|
||||
Total other operating expenses, net |
|
|
(976.8 |
) |
|
|
18.4 |
|
|
|
(958.4 |
) |
|
|
1.5 |
|
|
|
(956.9 |
) |
(f) |
Operating expense margin |
|
|
56.6 |
% |
|
|
|
|
55.5 |
% |
|
|
|
|
55.5 |
% |
|
||||
Operating income |
|
|
178.9 |
|
|
|
18.4 |
|
|
|
197.3 |
|
|
|
3.8 |
|
|
|
201.1 |
|
|
Operating margin |
|
|
10.4 |
% |
|
|
|
|
11.4 |
% |
|
|
|
|
11.7 |
% |
|
||||
Income before income taxes |
|
|
188.1 |
|
|
|
18.4 |
|
|
|
206.5 |
|
|
|
|
|
|
||||
Income tax provision |
|
|
(40.2 |
) |
|
|
(4.2 |
) |
|
|
(44.4 |
) |
|
|
|
|
|
||||
Effective tax rate |
|
|
21.4 |
% |
|
|
|
|
21.5 |
% |
|
|
|
|
|
||||||
Net income |
|
$ |
147.9 |
|
|
$ |
14.2 |
|
|
$ |
162.1 |
|
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
2.31 |
|
|
|
|
$ |
2.54 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
739.5 |
|
|
$ |
— |
|
|
$ |
739.5 |
|
|
$ |
0.4 |
|
|
$ |
739.9 |
|
|
|
|
|
565.9 |
|
|
|
— |
|
|
|
565.9 |
|
|
|
(5.7 |
) |
|
|
560.2 |
|
|
|
|
|
380.2 |
|
|
|
— |
|
|
|
380.2 |
|
|
|
4.5 |
|
|
|
384.7 |
|
|
Other non-reportable segments |
|
|
40.4 |
|
|
|
— |
|
|
|
40.4 |
|
|
|
— |
|
|
|
40.4 |
|
|
Total revenue |
|
$ |
1,726.0 |
|
|
$ |
— |
|
|
$ |
1,726.0 |
|
|
$ |
(0.8 |
) |
|
$ |
1,725.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
121.9 |
|
|
$ |
— |
|
|
$ |
121.9 |
|
|
|
|
|
|
||||
Operating margin |
|
|
16.5 |
% |
|
|
|
|
16.5 |
% |
|
|
|
|
|
||||||
|
|
|
145.9 |
|
|
|
— |
|
|
|
145.9 |
|
|
|
|
|
|
||||
Operating margin |
|
|
25.8 |
% |
|
|
|
|
25.8 |
% |
|
|
|
|
|
||||||
|
|
|
86.3 |
|
|
|
— |
|
|
|
86.3 |
|
|
|
|
|
|
||||
Operating margin |
|
|
22.7 |
% |
|
|
|
|
22.7 |
% |
|
|
|
|
|
||||||
Other non-reportable segments |
|
|
33.5 |
|
|
|
— |
|
|
|
33.5 |
|
|
|
|
|
|
||||
Operating margin |
|
|
82.9 |
% |
|
|
|
|
82.9 |
% |
|
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(208.7 |
) |
|
|
18.4 |
|
|
|
(190.3 |
) |
|
|
|
|
|
||||
Total operating income |
|
$ |
178.9 |
|
|
$ |
18.4 |
|
|
$ |
197.3 |
|
|
|
|
|
|
RALPH LAUREN CORPORATION |
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
September 28, 2024 |
||||||||||||||||||
|
|
As Reported |
|
Total Adjustments(a)(c) |
|
As Adjusted (Reported $) |
|
Foreign Currency Impact |
|
As Adjusted (Constant $) |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
3,238.2 |
|
|
$ |
— |
|
|
$ |
3,238.2 |
|
|
$ |
25.3 |
|
|
$ |
3,263.5 |
|
Gross profit |
|
|
2,221.5 |
|
|
|
— |
|
|
|
2,221.5 |
|
|
|
27.1 |
|
|
|
2,248.6 |
|
Gross profit margin |
|
|
68.6 |
% |
|
|
|
|
68.6 |
% |
|
|
|
|
68.9 |
% |
||||
Total other operating expenses, net |
|
|
(1,834.1 |
) |
|
|
25.8 |
|
|
|
(1,808.3 |
) |
|
|
(12.3 |
) |
|
|
(1,820.6 |
) |
Operating expense margin |
|
|
56.6 |
% |
|
|
|
|
55.8 |
% |
|
|
|
|
55.8 |
% |
||||
Operating income |
|
|
387.4 |
|
|
|
25.8 |
|
|
|
413.2 |
|
|
|
14.8 |
|
|
|
428.0 |
|
Operating margin |
|
|
12.0 |
% |
|
|
|
|
12.8 |
% |
|
|
|
|
13.1 |
% |
||||
Income before income taxes |
|
|
404.7 |
|
|
|
25.8 |
|
|
|
430.5 |
|
|
|
|
|
||||
Income tax provision |
|
|
(88.2 |
) |
|
|
(5.6 |
) |
|
|
(93.8 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
21.8 |
% |
|
|
|
|
21.8 |
% |
|
|
|
|
||||||
Net income |
|
$ |
316.5 |
|
|
$ |
20.2 |
|
|
$ |
336.7 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
4.93 |
|
|
|
|
$ |
5.24 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
1,347.7 |
|
|
$ |
— |
|
|
$ |
1,347.7 |
|
|
$ |
0.9 |
|
|
$ |
1,348.6 |
|
|
|
|
1,045.0 |
|
|
|
— |
|
|
|
1,045.0 |
|
|
|
(2.0 |
) |
|
|
1,043.0 |
|
|
|
|
771.1 |
|
|
|
— |
|
|
|
771.1 |
|
|
|
26.4 |
|
|
|
797.5 |
|
Other non-reportable segments |
|
|
74.4 |
|
|
|
— |
|
|
|
74.4 |
|
|
|
— |
|
|
|
74.4 |
|
Total revenue |
|
$ |
3,238.2 |
|
|
$ |
— |
|
|
$ |
3,238.2 |
|
|
$ |
25.3 |
|
|
$ |
3,263.5 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
241.7 |
|
|
$ |
— |
|
|
$ |
241.7 |
|
|
|
|
|
||||
Operating margin |
|
|
17.9 |
% |
|
|
|
|
17.9 |
% |
|
|
|
|
||||||
|
|
|
266.5 |
|
|
|
— |
|
|
|
266.5 |
|
|
|
|
|
||||
Operating margin |
|
|
25.5 |
% |
|
|
|
|
25.5 |
% |
|
|
|
|
||||||
|
|
|
193.5 |
|
|
|
— |
|
|
|
193.5 |
|
|
|
|
|
||||
Operating margin |
|
|
25.1 |
% |
|
|
|
|
25.1 |
% |
|
|
|
|
||||||
Other non-reportable segments |
|
|
63.1 |
|
|
|
— |
|
|
|
63.1 |
|
|
|
|
|
||||
Operating margin |
|
|
84.8 |
% |
|
|
|
|
84.8 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(377.4 |
) |
|
|
25.8 |
|
|
|
(351.6 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
387.4 |
|
|
$ |
25.8 |
|
|
$ |
413.2 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
RALPH LAUREN CORPORATION |
|
||||||||||||
RECONCILIATION OF NON- |
|
||||||||||||
(Unaudited) |
|
||||||||||||
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
||||||||||
|
|
September 30, 2023 |
|
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(d) |
|
As Adjusted |
|
||||||
|
|
(millions, except per share data) |
|
||||||||||
Net revenues |
|
$ |
1,633.0 |
|
|
$ |
— |
|
|
$ |
1,633.0 |
|
|
Gross profit |
|
|
1,070.1 |
|
|
|
(1.8 |
) |
|
|
1,068.3 |
|
|
Gross profit margin |
|
|
65.5 |
% |
|
|
|
|
65.4 |
% |
|
||
Total other operating expenses, net |
|
|
(905.6 |
) |
|
|
9.0 |
|
|
|
(896.6 |
) |
(g) |
Operating expense margin |
|
|
55.5 |
% |
|
|
|
|
54.9 |
% |
|
||
Operating income |
|
|
164.5 |
|
|
|
7.2 |
|
|
|
171.7 |
|
|
Operating margin |
|
|
10.1 |
% |
|
|
|
|
10.5 |
% |
|
||
Income before income taxes |
|
|
165.5 |
|
|
|
7.2 |
|
|
|
172.7 |
|
|
Income tax provision |
|
|
(18.6 |
) |
|
|
(13.2 |
) |
|
|
(31.8 |
) |
|
Effective tax rate |
|
|
11.2 |
% |
|
|
|
|
18.5 |
% |
|
||
Net income |
|
$ |
146.9 |
|
|
$ |
(6.0 |
) |
|
$ |
140.9 |
|
|
Net income per diluted common share |
|
$ |
2.19 |
|
|
|
|
$ |
2.10 |
|
|
||
|
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
||||||
|
|
$ |
110.2 |
|
|
$ |
(2.1 |
) |
|
$ |
108.1 |
|
|
Operating margin |
|
|
15.4 |
% |
|
|
|
|
15.1 |
% |
|
||
|
|
|
132.4 |
|
|
|
— |
|
|
|
132.4 |
|
|
Operating margin |
|
|
25.1 |
% |
|
|
|
|
25.1 |
% |
|
||
|
|
|
68.4 |
|
|
|
— |
|
|
|
68.4 |
|
|
Operating margin |
|
|
19.6 |
% |
|
|
|
|
19.6 |
% |
|
||
Other non-reportable segments |
|
|
34.1 |
|
|
|
— |
|
|
|
34.1 |
|
|
Operating margin |
|
|
85.2 |
% |
|
|
|
|
85.2 |
% |
|
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(180.6 |
) |
|
|
9.3 |
|
|
|
(171.3 |
) |
|
Total operating income |
|
$ |
164.5 |
|
|
$ |
7.2 |
|
|
$ |
171.7 |
|
|
|
|
|
|
|
|
|
|
RALPH LAUREN CORPORATION |
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Six Months Ended |
||||||||||
|
|
September 30, 2023 |
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(e) |
|
As Adjusted |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
3,129.5 |
|
|
$ |
— |
|
|
$ |
3,129.5 |
|
Gross profit |
|
|
2,102.1 |
|
|
|
(3.6 |
) |
|
|
2,098.5 |
|
Gross profit margin |
|
|
67.2 |
% |
|
|
|
|
67.1 |
% |
||
Total other operating expenses, net |
|
|
(1,771.2 |
) |
|
|
44.5 |
|
|
|
(1,726.7 |
) |
Operating expense margin |
|
|
56.6 |
% |
|
|
|
|
55.2 |
% |
||
Operating income |
|
|
330.9 |
|
|
|
40.9 |
|
|
|
371.8 |
|
Operating margin |
|
|
10.6 |
% |
|
|
|
|
11.9 |
% |
||
Income before income taxes |
|
|
336.1 |
|
|
|
40.9 |
|
|
|
377.0 |
|
Income tax provision |
|
|
(57.1 |
) |
|
|
(21.0 |
) |
|
|
(78.1 |
) |
Effective tax rate |
|
|
17.0 |
% |
|
|
|
|
20.7 |
% |
||
Net income |
|
$ |
279.0 |
|
|
$ |
19.9 |
|
|
$ |
298.9 |
|
Net income per diluted common share |
|
$ |
4.15 |
|
|
|
|
$ |
4.44 |
|
||
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
235.5 |
|
|
$ |
(3.8 |
) |
|
$ |
231.7 |
|
Operating margin |
|
|
17.4 |
% |
|
|
|
|
17.2 |
% |
||
|
|
|
229.6 |
|
|
|
(0.2 |
) |
|
|
229.4 |
|
Operating margin |
|
|
23.5 |
% |
|
|
|
|
23.5 |
% |
||
|
|
|
161.7 |
|
|
|
— |
|
|
|
161.7 |
|
Operating margin |
|
|
22.3 |
% |
|
|
|
|
22.3 |
% |
||
Other non-reportable segments |
|
|
67.9 |
|
|
|
— |
|
|
|
67.9 |
|
Operating margin |
|
|
88.4 |
% |
|
|
|
|
88.4 |
% |
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(363.8 |
) |
|
|
44.9 |
|
|
|
(318.9 |
) |
Total operating income |
|
$ |
330.9 |
|
|
$ |
40.9 |
|
|
$ |
371.8 |
|
RALPH LAUREN CORPORATION |
||
FOOTNOTES TO RECONCILIATION OF NON- |
||
(a) | Adjustments for non-routine inventory-related charges (benefits) are recorded within cost of goods sold in the consolidated statements of operations. Adjustments for non-routine bad debt expense (benefit) are recorded within selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Adjustments for one-time income tax events are recorded within the income tax benefit (provision) in the consolidated statements of operations. Adjustments for all other charges are recorded within restructuring and other charges, net in the consolidated statements of operations. |
|
|
||
(b) |
Adjustments for the three months ended September 28, 2024 include (i) charges of |
|
|
||
(c) |
Adjustments for the six months ended September 28, 2024 include (i) charges of |
|
|
||
(d) |
Adjustments for the three months ended September 30, 2023 include (i) charges of |
|
|
||
(e) |
Adjustments for the six months ended September 30, 2023 include (i) charges of |
|
|
||
(f) | Total adjusted other operating expenses, net excluding marketing and advertising ("Marketing") expenses for the three months ended September 28, 2024 were as follows: |
|
|
Three Months Ended |
||||||||||
|
|
September 28, 2024 |
||||||||||
|
|
As Adjusted in Constant $ (incl. Marketing) |
|
Marketing Expenses |
|
As Adjusted in Constant $ (excl. Marketing) |
||||||
|
|
(millions) |
||||||||||
Total other operating expenses, net |
|
$ |
(956.9 |
) |
|
$ |
150.2 |
|
$ |
(806.7 |
) |
|
Operating expense margin |
|
|
55.5 |
% |
|
|
|
|
46.8 |
% |
(g) | Total adjusted other operating expenses, net excluding Marketing expenses for the three months ended September 30, 2023 were as follows: |
|
|
Three Months Ended |
||||||||||
|
|
September 30, 2023 |
||||||||||
|
|
As Adjusted (incl. Marketing) |
|
Marketing Expenses |
|
As Adjusted (excl. Marketing) |
||||||
|
|
(millions) |
||||||||||
Total other operating expenses, net |
|
$ |
(896.6 |
) |
|
$ |
133.1 |
|
$ |
(763.5 |
) |
|
Operating expense margin |
|
|
54.9 |
% |
|
|
|
|
46.8 |
% |
||
NON-
Because Ralph Lauren Corporation is a global company, the comparability of its operating results reported in
This earnings release also includes certain other non-
Adjustments made during the fiscal periods presented include charges recorded in connection with the Company's restructuring activities, as well as certain other charges (benefits) associated with other non-recurring events, as described in the footnotes to the non-
Additionally, the Company's full year Fiscal 2025 and third quarter guidance excludes any potential restructuring-related and other charges that may be incurred in future periods. The Company is not able to provide a full reconciliation of these non-
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106117975/en/
Investor Relations:
Corinna Van der Ghinst
ir@ralphlauren.com
Or
Corporate Communications
rl-press@ralphlauren.com
Source: Ralph Lauren Corporation
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