Ralph Lauren Reports Strong Third Quarter Fiscal 2024 Holiday Results Ahead of Expectations
- Third Quarter Revenue Increased 6% on a Reported Basis and 5% in Constant Currency, with All Regions Exceeding Expectations Led by
Asia - Global Direct-to-Consumer Comparable Store Sales Accelerated to 9% Growth in the Quarter, Driven by Positive Retail Comps Across All Regions and Channels
- Operating Margins Exceeded Our Outlook, with Continued Brand Elevation and Expense Discipline More than Offsetting Ongoing Product Cost Headwinds and Investments in Marketing and Ecosystem Expansion in the Period
- Reported Diluted EPS Growth of 31% and Adjusted EPS Growth of 24%, Ahead of Our Expectations Reflecting Strong Operating Profit Growth and Discrete Tax Benefits in the Quarter
- Exited Holiday with Healthy Inventory Levels, with Global Inventories Down 15% to Prior Year
- Returned Approximately
$425 Million to Shareholders Through Our Dividend and Repurchase of Class A Common Stock This Fiscal Year-to-Date - Reiterated Full Year Fiscal 2024 Outlook of Low-Single Digit Revenue Growth, Now Centering on 2%, and Adjusted Gross and Operating Margin Expansion, All in Constant Currency
"Our vision inspires people to live the life of their dreams," said
"We delivered a strong holiday, with continued progress on our
Key Achievements in Third Quarter Fiscal 2024
We delivered the following highlights across our
- Elevate and Energize Our Lifestyle Brand
- Delivered our strongest growth in new customer acquisition and loyalty since the pandemic with 1.7 million new consumers in our direct-to-consumer businesses and accelerated net promoter scores over the holiday quarter
- Created powerful, authentic connections with consumers across key cultural moments including; our global "Season for Dreaming" Holiday 2023 campaign with key city takeovers; successful Singles Day activations in
Asia ; our inaugural Artist in Residence collaboration with Naiomi Glasses, a groundbreaking partnership focused on empowering and celebrating artisans within the communities that have historically inspired our designs; and dressingTaylor Swift on the cover of TIME's 2023 Person of the Year issue
- Drive the Core and Expand for More
- Increased average unit retail ("AUR") by 9% across our direct-to-consumer network in the third quarter, on top of a 10% increase last year, reflecting the durability of our multi-pronged elevation approach
- Drove continued momentum in both our Core business and high-potential categories, both up low-double-digits to last year in constant currency and outpacing total company growth
- Product highlights this quarter included: Polo Country x Element Skateboards, an exclusive capsule of unisex styles and skateboards celebrating the great outdoors; our limited-edition Polo ID collaboration with Mr. Bags in
China ; and ourRalph Lauren Pink Pony collection, supporting our longstanding commitment to cancer care
- Win in Key Cities with Our Consumer Ecosystem
- By region, constant currency sales performance exceeded our expectations led by
Asia , up 16% on a reported basis and 17% in constant currency withChina up more than 30% to last year.Europe grew 11% on a reported basis and 6% in constant currency.North America was approximately flat, representing a sequential improvement from the first half of Fiscal 2024 driven by stronger direct-to-consumer performance - Continued to expand and scale our key city ecosystems in the third quarter, including: our new emblematic store opening at Marina Bay Sands in
Singapore , our firstRalph Lauren stores inPrague andNorth Carolina , the launch of our digital commerce flagship inCanada and our first Ralph’s Coffee inParis and theUnited Arab Emirates
- By region, constant currency sales performance exceeded our expectations 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.
Third Quarter Fiscal 2024 Income Statement Review
Net Revenue. In the third quarter of Fiscal 2024, revenue increased 6% to
Revenue performance for the Company's reportable segments in the third quarter compared to the prior year period was as follows:
- North America Revenue.
North America revenue in the third quarter was$933 million , approximately flat to last year. In retail, comparable store sales inNorth America increased 5%, exceeding expectations, led by a 6% increase in brick and mortar stores and 4% increase in digital commerce.North America wholesale revenue decreased 15%, in-line with our expectations as the Company carefully manages sell-in to align with consumer demand in the channel. We continue to evaluate our brand presence on a door-by-door basis, resulting in approximately 20 department store exits completed in the region this fiscal year. - Europe Revenue.
Europe revenue in the third quarter increased 11% to$522 million on a reported basis and 6% in constant currency. Results included approximately 5 points of negative impact from lapping last year's favorable post-pandemic wholesale allowances and a timing shift of wholesale shipments earlier in the year to maximize full-price selling. In retail, comparable store sales inEurope accelerated to 11% growth, with a 10% increase in brick and mortar stores and a 12% increase in digital commerce.Europe wholesale revenue increased 5% to prior year on a reported basis and was approximately flat in constant currency, with stronger re-order trends largely offsetting the previously-disclosed impacts noted above. - Asia Revenue.
Asia revenue in the third quarter increased 16% to$446 million on a reported basis and 17% in constant currency. Comparable store sales inAsia increased 14%, with a 13% increase in our brick and mortar stores and a 25% increase in digital commerce.
Gross Profit. Gross profit for the third quarter of Fiscal 2024 was
Operating Expenses. Operating expenses in the third quarter of Fiscal 2024 were
Operating Income. Operating income for the third quarter of Fiscal 2024 was
- North America Operating Income.
North America operating income in the third quarter was$205 million on a reported basis and$204 million on an adjusted basis.Adjusted North America operating margin was 21.8%, down 150 basis points to last year, with strong gross margin expansion more than offset by higher operating expenses due to the timing of planned strategic investments, particularly in digital and marketing. - Europe Operating Income.
Europe operating income in the third quarter was$123 million on both a reported and adjusted basis. AdjustedEurope operating margin was 23.7%, up 30 basis points to last year. Foreign currency favorably impacted adjusted operating margin rate by 20 basis points in the third quarter. - Asia Operating Income.
Asia operating income in the third quarter was$108 million on both a reported and adjusted basis. AdjustedAsia operating margin was 24.2%, up 90 basis points to last year. Foreign currency favorably impacted adjusted operating margin rate by 10 basis points in the third quarter.
Net Income and EPS. Net income in the third quarter of Fiscal 2024 was
In the third quarter of Fiscal 2024, the Company had an effective tax rate of approximately 16% on a reported basis and 17% on an adjusted basis. This compared to an effective tax rate of approximately 23% on both a reported and adjusted basis in the prior year period. The decline was driven primarily by a discrete tax benefit resulting from a reorganization of the Company's legal entity structure.
Balance Sheet and Cash Flow Review
The Company ended the third quarter of Fiscal 2024 with
Inventory at the end of the third quarter of Fiscal 2024 was
The Company repurchased approximately
Full Year Fiscal 2024 and Fourth 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 and foreign currency volatility, among others. The full year Fiscal 2024 and fourth 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 2024, the Company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis, now centering around 2% compared to 1% to 2% previously. Based on current exchange rates, foreign currency is now expected to have a modest benefit on revenue growth of approximately 10 basis points in Fiscal 2024.
The Company continues to expect operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency to 12.3% to 12.5%, driven by gross margin expansion. Foreign currency is now expected to have a roughly neutral impact on Fiscal 2024 operating margin. Gross margin is now expected to increase approximately 140 to 180 basis points in constant currency (compared to 120 to 170 basis points previously), with reduced freight costs, favorable channel and geographic mix and continued growth in AUR more than offsetting product cost inflation. Foreign currency is now anticipated to negatively impact gross margins by approximately 20 basis points in Fiscal 2024. Gross margin expansion is still expected to more than offset higher operating expenses as a percent of revenue due to channel mix shifts and as the Company invests in long-term strategic growth initiatives, notably digital and key city ecosystem expansion.
For the fourth quarter, the Company expects revenue growth to be in a range centered around 2% in constant currency to last year. Foreign currency is expected to negatively impact revenue growth by approximately 160 basis points.
Operating margin for the fourth quarter is expected to expand approximately 350 to 400 basis points in constant currency, driven largely by gross margin expansion, with about 40 basis points of negative foreign currency impact. Foreign currency is expected to negatively impact gross margin by approximately 50 basis points in the fourth quarter.
Assuming a continuation of current tax laws, the Company's full year Fiscal 2024 tax rate is now expected to be in the range of approximately 19% to 20% following discrete tax benefits recognized in the third quarter, while its fourth quarter tax rate is expected to be in the range of 22% to 23%.
The Company now expects capital expenditures for Fiscal 2024 of approximately
Conference Call
As previously announced, the Company will host a conference call and live online webcast today,
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
ABOUT
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 environmental, social, and governance 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.
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CONSOLIDATED BALANCE SHEETS |
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Prepared in accordance with |
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(Unaudited) |
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(millions) |
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ASSETS |
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Current assets: |
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|
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Cash and cash equivalents |
|
$ |
1,803.6 |
|
|
$ |
1,529.3 |
|
|
$ |
1,566.1 |
|
Short-term investments |
|
|
113.8 |
|
|
|
36.4 |
|
|
|
131.4 |
|
Accounts receivable, net of allowances |
|
|
403.9 |
|
|
|
447.7 |
|
|
|
424.0 |
|
Inventories |
|
|
1,055.1 |
|
|
|
1,071.3 |
|
|
|
1,238.4 |
|
Income tax receivable |
|
|
43.8 |
|
|
|
50.7 |
|
|
|
50.5 |
|
Prepaid expenses and other current assets |
|
|
219.2 |
|
|
|
188.7 |
|
|
|
220.9 |
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Total current assets |
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3,639.4 |
|
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|
3,324.1 |
|
|
|
3,631.3 |
|
Property and equipment, net |
|
|
874.3 |
|
|
|
955.5 |
|
|
|
947.5 |
|
Operating lease right-of-use assets |
|
|
1,076.7 |
|
|
|
1,134.0 |
|
|
|
1,073.0 |
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Deferred tax assets |
|
|
305.1 |
|
|
|
255.1 |
|
|
|
270.4 |
|
|
|
|
899.9 |
|
|
|
898.9 |
|
|
|
890.4 |
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Intangible assets, net |
|
|
79.0 |
|
|
|
88.9 |
|
|
|
92.3 |
|
Other non-current assets |
|
|
130.1 |
|
|
|
133.0 |
|
|
|
135.0 |
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Total assets |
|
$ |
7,004.5 |
|
|
$ |
6,789.5 |
|
|
$ |
7,039.9 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
411.8 |
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$ |
371.6 |
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$ |
468.0 |
|
Current income tax payable |
|
|
102.3 |
|
|
|
59.7 |
|
|
|
118.7 |
|
Current operating lease liabilities |
|
|
259.0 |
|
|
|
266.7 |
|
|
|
264.4 |
|
Accrued expenses and other current liabilities |
|
|
905.1 |
|
|
|
795.5 |
|
|
|
898.5 |
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Total current liabilities |
|
|
1,678.2 |
|
|
|
1,493.5 |
|
|
|
1,749.6 |
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Long-term debt |
|
|
1,140.0 |
|
|
|
1,138.5 |
|
|
|
1,138.0 |
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Long-term finance lease liabilities |
|
|
263.5 |
|
|
|
315.3 |
|
|
|
320.9 |
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Long-term operating lease liabilities |
|
|
1,075.1 |
|
|
|
1,141.1 |
|
|
|
1,079.2 |
|
Non-current income tax payable |
|
|
42.2 |
|
|
|
75.9 |
|
|
|
75.5 |
|
Non-current liability for unrecognized tax benefits |
|
|
112.6 |
|
|
|
93.8 |
|
|
|
97.4 |
|
Other non-current liabilities |
|
|
121.0 |
|
|
|
100.9 |
|
|
|
111.5 |
|
Total liabilities |
|
|
4,432.6 |
|
|
|
4,359.0 |
|
|
|
4,572.1 |
|
Equity: |
|
|
|
|
|
|
||||||
Common stock |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
1.3 |
|
Additional paid-in-capital |
|
|
2,899.6 |
|
|
|
2,824.3 |
|
|
|
2,808.7 |
|
Retained earnings |
|
|
7,008.4 |
|
|
|
6,598.2 |
|
|
|
6,615.1 |
|
|
|
|
(7,128.1 |
) |
|
|
(6,797.3 |
) |
|
|
(6,754.5 |
) |
Accumulated other comprehensive loss |
|
|
(209.3 |
) |
|
|
(196.0 |
) |
|
|
(202.8 |
) |
Total equity |
|
|
2,571.9 |
|
|
|
2,430.5 |
|
|
|
2,467.8 |
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Total liabilities and equity |
|
$ |
7,004.5 |
|
|
$ |
6,789.5 |
|
|
$ |
7,039.9 |
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|
|
|
|
|
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|
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$ |
777.4 |
|
|
$ |
427.2 |
|
|
$ |
559.5 |
|
Cash & Short-term Investments |
|
|
1,917.4 |
|
|
|
1,565.7 |
|
|
|
1,697.5 |
__________________________ | ||
(a) |
Calculated as cash and cash equivalents, plus short-term investments, less total debt. |
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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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Three Months Ended |
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Nine Months Ended |
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(millions, except per share data) |
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Net revenues |
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$ |
1,934.0 |
|
|
$ |
1,832.3 |
|
|
$ |
5,063.5 |
|
|
$ |
4,902.8 |
|
Cost of goods sold |
|
|
(648.0 |
) |
|
|
(641.6 |
) |
|
|
(1,675.4 |
) |
|
|
(1,687.6 |
) |
Gross profit |
|
|
1,286.0 |
|
|
|
1,190.7 |
|
|
|
3,388.1 |
|
|
|
3,215.2 |
|
Selling, general, and administrative expenses |
|
|
(967.6 |
) |
|
|
(900.8 |
) |
|
|
(2,693.9 |
) |
|
|
(2,530.9 |
) |
Restructuring and other charges, net |
|
|
(0.7 |
) |
|
|
(7.8 |
) |
|
|
(45.6 |
) |
|
|
(20.3 |
) |
Total other operating expenses, net |
|
|
(968.3 |
) |
|
|
(908.6 |
) |
|
|
(2,739.5 |
) |
|
|
(2,551.2 |
) |
Operating income |
|
|
317.7 |
|
|
|
282.1 |
|
|
|
648.6 |
|
|
|
664.0 |
|
Interest expense |
|
|
(10.6 |
) |
|
|
(12.0 |
) |
|
|
(30.6 |
) |
|
|
(33.3 |
) |
Interest income |
|
|
20.7 |
|
|
|
8.6 |
|
|
|
52.2 |
|
|
|
18.8 |
|
Other income (expense), net |
|
|
2.0 |
|
|
|
1.7 |
|
|
|
(4.3 |
) |
|
|
(6.8 |
) |
Income before income taxes |
|
|
329.8 |
|
|
|
280.4 |
|
|
|
665.9 |
|
|
|
642.7 |
|
Income tax provision |
|
|
(53.2 |
) |
|
|
(63.9 |
) |
|
|
(110.3 |
) |
|
|
(152.3 |
) |
Net income |
|
$ |
276.6 |
|
|
$ |
216.5 |
|
|
$ |
555.6 |
|
|
$ |
490.4 |
|
Net income per common share: |
|
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|
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|
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Basic |
|
$ |
4.25 |
|
|
$ |
3.26 |
|
|
$ |
8.48 |
|
|
$ |
7.19 |
|
Diluted |
|
$ |
4.19 |
|
|
$ |
3.20 |
|
|
$ |
8.31 |
|
|
$ |
7.07 |
|
Weighted-average common shares outstanding: |
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Basic |
|
|
65.0 |
|
|
|
66.5 |
|
|
|
65.5 |
|
|
|
68.2 |
|
Diluted |
|
|
66.0 |
|
|
|
67.6 |
|
|
|
66.9 |
|
|
|
69.4 |
|
Dividends declared per share |
|
$ |
0.75 |
|
|
$ |
0.75 |
|
|
$ |
2.25 |
|
|
$ |
2.25 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Prepared in accordance with |
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(Unaudited) |
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Nine Months Ended |
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(millions) |
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Cash flows from operating activities: |
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Net income |
|
$ |
555.6 |
|
|
$ |
490.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization expense |
|
|
173.0 |
|
|
|
163.3 |
|
Deferred income tax expense (benefit) |
|
|
(11.6 |
) |
|
|
21.3 |
|
Stock-based compensation expense |
|
|
75.3 |
|
|
|
59.9 |
|
Bad debt expense |
|
|
1.8 |
|
|
|
0.2 |
|
Other non-cash charges (benefits) |
|
|
6.2 |
|
|
|
(1.1 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
41.8 |
|
|
|
(30.5 |
) |
Inventories |
|
|
14.6 |
|
|
|
(282.7 |
) |
Prepaid expenses and other current assets |
|
|
(28.6 |
) |
|
|
(54.2 |
) |
Accounts payable and accrued liabilities |
|
|
169.0 |
|
|
|
(24.3 |
) |
Income tax receivables and payables |
|
|
(0.8 |
) |
|
|
69.9 |
|
Operating lease right-of-use assets and liabilities, net |
|
|
(25.6 |
) |
|
|
(9.8 |
) |
Other balance sheet changes |
|
|
(22.0 |
) |
|
|
(5.4 |
) |
Net cash provided by operating activities |
|
|
948.7 |
|
|
|
397.0 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(124.9 |
) |
|
|
(155.9 |
) |
Purchases of investments |
|
|
(272.1 |
) |
|
|
(562.2 |
) |
Proceeds from sales and maturities of investments |
|
|
193.8 |
|
|
|
1,161.5 |
|
Other investing activities |
|
|
(1.0 |
) |
|
|
(5.2 |
) |
Net cash provided by (used in) investing activities |
|
|
(204.2 |
) |
|
|
438.2 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Repayments of long-term debt |
|
|
— |
|
|
|
(500.0 |
) |
Payments of finance lease obligations |
|
|
(16.3 |
) |
|
|
(15.9 |
) |
Payments of dividends |
|
|
(146.7 |
) |
|
|
(148.8 |
) |
Repurchases of common stock, including shares surrendered for tax withholdings |
|
|
(328.8 |
) |
|
|
(445.8 |
) |
Net cash used in financing activities |
|
|
(491.8 |
) |
|
|
(1,110.5 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
22.5 |
|
|
|
(23.2 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
275.2 |
|
|
|
(298.5 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,536.9 |
|
|
|
1,872.0 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
1,812.1 |
|
|
$ |
1,573.5 |
|
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SEGMENT INFORMATION |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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(millions) |
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Net revenues: |
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|
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|
$ |
933.3 |
|
|
$ |
937.6 |
|
|
$ |
2,282.8 |
|
|
$ |
2,364.9 |
|
|
|
|
521.5 |
|
|
|
469.3 |
|
|
|
1,498.8 |
|
|
|
1,378.4 |
|
|
|
|
446.4 |
|
|
|
386.2 |
|
|
|
1,172.3 |
|
|
|
1,036.7 |
|
Other non-reportable segments |
|
|
32.8 |
|
|
|
39.2 |
|
|
|
109.6 |
|
|
|
122.8 |
|
Total net revenues |
|
$ |
1,934.0 |
|
|
$ |
1,832.3 |
|
|
$ |
5,063.5 |
|
|
$ |
4,902.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
204.6 |
|
|
$ |
214.9 |
|
|
$ |
440.1 |
|
|
$ |
474.8 |
|
|
|
|
123.4 |
|
|
|
109.6 |
|
|
|
353.0 |
|
|
|
317.4 |
|
|
|
|
108.2 |
|
|
|
89.8 |
|
|
|
269.9 |
|
|
|
234.2 |
|
Other non-reportable segments |
|
|
29.4 |
|
|
|
36.9 |
|
|
|
97.3 |
|
|
|
114.1 |
|
|
|
|
465.6 |
|
|
|
451.2 |
|
|
|
1,160.3 |
|
|
|
1,140.5 |
|
Unallocated corporate expenses |
|
|
(147.2 |
) |
|
|
(161.3 |
) |
|
|
(466.1 |
) |
|
|
(456.2 |
) |
Unallocated restructuring and other charges, net |
|
|
(0.7 |
) |
|
|
(7.8 |
) |
|
|
(45.6 |
) |
|
|
(20.3 |
) |
Total operating income |
|
$ |
317.7 |
|
|
$ |
282.1 |
|
|
$ |
648.6 |
|
|
$ |
664.0 |
|
|
||||||||||||||
CONSTANT CURRENCY FINANCIAL MEASURES |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Comparable Store Sales Data |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
||||||
|
|
% Change |
|
% Change |
|
|
|
|
||||||
|
|
Constant Currency |
|
Constant Currency |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
4 |
% |
|
|
1 |
% |
|
|
|
|
||
Brick and mortar |
|
|
6 |
% |
|
|
2 |
% |
|
|
|
|
||
|
|
|
5 |
% |
|
|
2 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
12 |
% |
|
|
11 |
% |
|
|
|
|
||
Brick and mortar |
|
|
10 |
% |
|
|
6 |
% |
|
|
|
|
||
Total |
|
|
11 |
% |
|
|
7 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
25 |
% |
|
|
19 |
% |
|
|
|
|
||
Brick and mortar |
|
|
13 |
% |
|
|
11 |
% |
|
|
|
|
||
Total |
|
|
14 |
% |
|
|
12 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
9 |
% |
|
|
6 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Operating Segment Net Revenues Data |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
933.3 |
|
|
$ |
937.6 |
|
|
(0.5 |
%) |
|
(0.5 |
%) |
|
|
|
521.5 |
|
|
|
469.3 |
|
|
11.1 |
% |
|
6.4 |
% |
|
|
|
446.4 |
|
|
|
386.2 |
|
|
15.6 |
% |
|
17.5 |
% |
Other non-reportable segments |
|
|
32.8 |
|
|
|
39.2 |
|
|
(16.3 |
%) |
|
(16.3 |
%) |
Net revenues |
|
$ |
1,934.0 |
|
|
$ |
1,832.3 |
|
|
5.6 |
% |
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Nine Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
2,282.8 |
|
|
$ |
2,364.9 |
|
|
(3.5 |
%) |
|
(3.4 |
%) |
|
|
|
1,498.8 |
|
|
|
1,378.4 |
|
|
8.7 |
% |
|
4.1 |
% |
|
|
|
1,172.3 |
|
|
|
1,036.7 |
|
|
13.1 |
% |
|
16.0 |
% |
Other non-reportable segments |
|
|
109.6 |
|
|
|
122.8 |
|
|
(10.8 |
%) |
|
(10.8 |
%) |
Net revenues |
|
$ |
5,063.5 |
|
|
$ |
4,902.8 |
|
|
3.3 |
% |
|
2.7 |
% |
|
||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
693.1 |
|
$ |
297.3 |
|
$ |
425.4 |
|
$ |
— |
|
$ |
1,415.8 |
|
$ |
653.5 |
|
$ |
254.9 |
|
$ |
361.5 |
|
$ |
— |
|
$ |
1,269.9 |
Wholesale |
|
|
240.2 |
|
|
224.2 |
|
|
21.0 |
|
|
— |
|
|
485.4 |
|
|
284.1 |
|
|
214.4 |
|
|
24.7 |
|
|
— |
|
|
523.2 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
32.8 |
|
|
32.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
39.2 |
|
|
39.2 |
Net revenues |
|
$ |
933.3 |
|
$ |
521.5 |
|
$ |
446.4 |
|
$ |
32.8 |
|
$ |
1,934.0 |
|
$ |
937.6 |
|
$ |
469.3 |
|
$ |
386.2 |
|
$ |
39.2 |
|
$ |
1,832.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
1,541.9 |
|
$ |
762.4 |
|
$ |
1,095.6 |
|
$ |
— |
|
$ |
3,399.9 |
|
$ |
1,515.3 |
|
$ |
675.6 |
|
$ |
963.6 |
|
$ |
— |
|
$ |
3,154.5 |
Wholesale |
|
|
740.9 |
|
|
736.4 |
|
|
76.7 |
|
|
— |
|
|
1,554.0 |
|
|
849.6 |
|
|
702.8 |
|
|
73.1 |
|
|
— |
|
|
1,625.5 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
109.6 |
|
|
109.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
122.8 |
|
|
122.8 |
Net revenues |
|
$ |
2,282.8 |
|
$ |
1,498.8 |
|
$ |
1,172.3 |
|
$ |
109.6 |
|
$ |
5,063.5 |
|
$ |
2,364.9 |
|
$ |
1,378.4 |
|
$ |
1,036.7 |
|
$ |
122.8 |
|
$ |
4,902.8 |
|
||||
GLOBAL RETAIL STORE NETWORK |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50 |
|
46 |
Polo Outlet Stores |
|
187 |
|
190 |
Total Directly Operated Stores |
|
237 |
|
236 |
Concessions |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
45 |
|
43 |
Polo Outlet Stores |
|
60 |
|
61 |
Total Directly Operated Stores |
|
105 |
|
104 |
Concessions |
|
27 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
132 |
|
115 |
Polo Outlet Stores |
|
96 |
|
94 |
Total Directly Operated Stores |
|
228 |
|
209 |
Concessions |
|
679 |
|
698 |
|
|
|
|
|
Global Directly Operated Stores and Concessions |
|
|
|
|
|
|
227 |
|
204 |
Polo Outlet Stores |
|
343 |
|
345 |
Total Directly Operated Stores |
|
570 |
|
549 |
Concessions |
|
707 |
|
728 |
|
|
|
|
|
Global Licensed Stores |
|
|
|
|
Total Licensed Stores |
|
194 |
|
104 |
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As Reported |
|
Total Adjustments(a)(b) |
|
As Adjusted (Reported $) |
|
Foreign Currency Impact |
|
As Adjusted (Constant $) |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
1,934.0 |
|
|
$ |
— |
|
|
$ |
1,934.0 |
|
|
$ |
(15.1 |
) |
|
$ |
1,918.9 |
|
Gross profit |
|
|
1,286.0 |
|
|
|
(0.9 |
) |
|
|
1,285.1 |
|
|
|
(8.6 |
) |
|
|
1,276.5 |
|
Gross profit margin |
|
|
66.5 |
% |
|
|
|
|
66.4 |
% |
|
|
|
|
66.5 |
% |
||||
Total other operating expenses, net |
|
|
(968.3 |
) |
|
|
0.7 |
|
|
|
(967.6 |
) |
|
|
3.5 |
|
|
|
(964.1 |
) |
Operating expense margin |
|
|
50.1 |
% |
|
|
|
|
50.0 |
% |
|
|
|
|
50.2 |
% |
||||
Operating income |
|
|
317.7 |
|
|
|
(0.2 |
) |
|
|
317.5 |
|
|
|
(5.1 |
) |
|
|
312.4 |
|
Operating margin |
|
|
16.4 |
% |
|
|
|
|
16.4 |
% |
|
|
|
|
16.3 |
% |
||||
Income before income taxes |
|
|
329.8 |
|
|
|
(0.2 |
) |
|
|
329.6 |
|
|
|
|
|
||||
Income tax provision |
|
|
(53.2 |
) |
|
|
(1.3 |
) |
|
|
(54.5 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
16.1 |
% |
|
|
|
|
16.5 |
% |
|
|
|
|
||||||
Net income |
|
$ |
276.6 |
|
|
$ |
(1.5 |
) |
|
$ |
275.1 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
4.19 |
|
|
|
|
$ |
4.17 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
933.3 |
|
|
$ |
— |
|
|
$ |
933.3 |
|
|
$ |
(0.2 |
) |
|
$ |
933.1 |
|
|
|
|
521.5 |
|
|
|
— |
|
|
|
521.5 |
|
|
|
(22.2 |
) |
|
|
499.3 |
|
|
|
|
446.4 |
|
|
|
— |
|
|
|
446.4 |
|
|
|
7.3 |
|
|
|
453.7 |
|
Other non-reportable segments |
|
|
32.8 |
|
|
|
— |
|
|
|
32.8 |
|
|
|
— |
|
|
|
32.8 |
|
Total revenue |
|
$ |
1,934.0 |
|
|
$ |
— |
|
|
$ |
1,934.0 |
|
|
$ |
(15.1 |
) |
|
$ |
1,918.9 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
204.6 |
|
|
$ |
(0.9 |
) |
|
$ |
203.7 |
|
|
|
|
|
||||
Operating margin |
|
|
21.9 |
% |
|
|
|
|
21.8 |
% |
|
|
|
|
||||||
|
|
|
123.4 |
|
|
|
— |
|
|
|
123.4 |
|
|
|
|
|
||||
Operating margin |
|
|
23.7 |
% |
|
|
|
|
23.7 |
% |
|
|
|
|
||||||
|
|
|
108.2 |
|
|
|
— |
|
|
|
108.2 |
|
|
|
|
|
||||
Operating margin |
|
|
24.2 |
% |
|
|
|
|
24.2 |
% |
|
|
|
|
||||||
Other non-reportable segments |
|
|
29.4 |
|
|
|
— |
|
|
|
29.4 |
|
|
|
|
|
||||
Operating margin |
|
|
89.9 |
% |
|
|
|
|
89.9 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(147.9 |
) |
|
|
0.7 |
|
|
|
(147.2 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
317.7 |
|
|
$ |
(0.2 |
) |
|
$ |
317.5 |
|
|
|
|
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Nine Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As Reported |
|
Total Adjustments(a)(c) |
|
As Adjusted (Reported $) |
|
Foreign Currency Impact |
|
As Adjusted (Constant $) |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
5,063.5 |
|
|
$ |
— |
|
|
$ |
5,063.5 |
|
|
$ |
(30.4 |
) |
|
$ |
5,033.1 |
|
Gross profit |
|
|
3,388.1 |
|
|
|
(4.5 |
) |
|
|
3,383.6 |
|
|
|
(12.2 |
) |
|
|
3,371.4 |
|
Gross profit margin |
|
|
66.9 |
% |
|
|
|
|
66.8 |
% |
|
|
|
|
67.0 |
% |
||||
Total other operating expenses, net |
|
|
(2,739.5 |
) |
|
|
45.2 |
|
|
|
(2,694.3 |
) |
|
|
0.3 |
|
|
|
(2,694.0 |
) |
Operating expense margin |
|
|
54.1 |
% |
|
|
|
|
53.2 |
% |
|
|
|
|
53.5 |
% |
||||
Operating income |
|
|
648.6 |
|
|
|
40.7 |
|
|
|
689.3 |
|
|
|
(11.9 |
) |
|
|
677.4 |
|
Operating margin |
|
|
12.8 |
% |
|
|
|
|
13.6 |
% |
|
|
|
|
13.5 |
% |
||||
Income before income taxes |
|
|
665.9 |
|
|
|
40.7 |
|
|
|
706.6 |
|
|
|
|
|
||||
Income tax provision |
|
|
(110.3 |
) |
|
|
(22.3 |
) |
|
|
(132.6 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
16.6 |
% |
|
|
|
|
18.8 |
% |
|
|
|
|
||||||
Net income |
|
$ |
555.6 |
|
|
$ |
18.4 |
|
|
$ |
574.0 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
8.31 |
|
|
|
|
$ |
8.58 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
2,282.8 |
|
|
$ |
— |
|
|
$ |
2,282.8 |
|
|
$ |
2.3 |
|
|
$ |
2,285.1 |
|
|
|
|
1,498.8 |
|
|
|
— |
|
|
|
1,498.8 |
|
|
|
(63.5 |
) |
|
|
1,435.3 |
|
|
|
|
1,172.3 |
|
|
|
— |
|
|
|
1,172.3 |
|
|
|
30.8 |
|
|
|
1,203.1 |
|
Other non-reportable segments |
|
|
109.6 |
|
|
|
— |
|
|
|
109.6 |
|
|
|
— |
|
|
|
109.6 |
|
Total revenue |
|
$ |
5,063.5 |
|
|
$ |
— |
|
|
$ |
5,063.5 |
|
|
$ |
(30.4 |
) |
|
$ |
5,033.1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
440.1 |
|
|
$ |
(4.7 |
) |
|
$ |
435.4 |
|
|
|
|
|
||||
Operating margin |
|
|
19.3 |
% |
|
|
|
|
19.1 |
% |
|
|
|
|
||||||
|
|
|
353.0 |
|
|
|
(0.2 |
) |
|
|
352.8 |
|
|
|
|
|
||||
Operating margin |
|
|
23.6 |
% |
|
|
|
|
23.5 |
% |
|
|
|
|
||||||
|
|
|
269.9 |
|
|
|
— |
|
|
|
269.9 |
|
|
|
|
|
||||
Operating margin |
|
|
23.0 |
% |
|
|
|
|
23.0 |
% |
|
|
|
|
||||||
Other non-reportable segments |
|
|
97.3 |
|
|
|
— |
|
|
|
97.3 |
|
|
|
|
|
||||
Operating margin |
|
|
88.9 |
% |
|
|
|
|
88.9 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(511.7 |
) |
|
|
45.6 |
|
|
|
(466.1 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
648.6 |
|
|
$ |
40.7 |
|
|
$ |
689.3 |
|
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(d) |
|
As Adjusted |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
1,832.3 |
|
|
$ |
— |
|
|
$ |
1,832.3 |
|
Gross profit |
|
|
1,190.7 |
|
|
|
4.0 |
|
|
|
1,194.7 |
|
Gross profit margin |
|
|
65.0 |
% |
|
|
|
|
65.2 |
% |
||
Total other operating expenses, net |
|
|
(908.6 |
) |
|
|
7.8 |
|
|
|
(900.8 |
) |
Operating expense margin |
|
|
49.6 |
% |
|
|
|
|
49.2 |
% |
||
Operating income |
|
|
282.1 |
|
|
|
11.8 |
|
|
|
293.9 |
|
Operating margin |
|
|
15.4 |
% |
|
|
|
|
16.0 |
% |
||
Income before income taxes |
|
|
280.4 |
|
|
|
11.8 |
|
|
|
292.2 |
|
Income tax provision |
|
|
(63.9 |
) |
|
|
(2.2 |
) |
|
|
(66.1 |
) |
Effective tax rate |
|
|
22.8 |
% |
|
|
|
|
22.6 |
% |
||
Net income |
|
$ |
216.5 |
|
|
$ |
9.6 |
|
|
$ |
226.1 |
|
Net income per diluted common share |
|
$ |
3.20 |
|
|
|
|
$ |
3.35 |
|
||
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
214.9 |
|
|
$ |
3.7 |
|
|
$ |
218.6 |
|
Operating margin |
|
|
22.9 |
% |
|
|
|
|
23.3 |
% |
||
|
|
|
109.6 |
|
|
|
0.2 |
|
|
|
109.8 |
|
Operating margin |
|
|
23.3 |
% |
|
|
|
|
23.4 |
% |
||
|
|
|
89.8 |
|
|
|
— |
|
|
|
89.8 |
|
Operating margin |
|
|
23.3 |
% |
|
|
|
|
23.3 |
% |
||
Other non-reportable segments |
|
|
36.9 |
|
|
|
0.1 |
|
|
|
37.0 |
|
Operating margin |
|
|
94.3 |
% |
|
|
|
|
94.3 |
% |
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(169.1 |
) |
|
|
7.8 |
|
|
|
(161.3 |
) |
Total operating income |
|
$ |
282.1 |
|
|
$ |
11.8 |
|
|
$ |
293.9 |
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Nine Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(e) |
|
As Adjusted |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
4,902.8 |
|
|
$ |
— |
|
|
$ |
4,902.8 |
|
Gross profit |
|
|
3,215.2 |
|
|
|
13.2 |
|
|
|
3,228.4 |
|
Gross profit margin |
|
|
65.6 |
% |
|
|
|
|
65.8 |
% |
||
Total other operating expenses, net |
|
|
(2,551.2 |
) |
|
|
18.1 |
|
|
|
(2,533.1 |
) |
Operating expense margin |
|
|
52.0 |
% |
|
|
|
|
51.7 |
% |
||
Operating income |
|
|
664.0 |
|
|
|
31.3 |
|
|
|
695.3 |
|
Operating margin |
|
|
13.5 |
% |
|
|
|
|
14.2 |
% |
||
Income before income taxes |
|
|
642.7 |
|
|
|
31.3 |
|
|
|
674.0 |
|
Income tax provision |
|
|
(152.3 |
) |
|
|
(7.0 |
) |
|
|
(159.3 |
) |
Effective tax rate |
|
|
23.7 |
% |
|
|
|
|
23.6 |
% |
||
Net income |
|
$ |
490.4 |
|
|
$ |
24.3 |
|
|
$ |
514.7 |
|
Net income per diluted common share |
|
$ |
7.07 |
|
|
|
|
$ |
7.42 |
|
||
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
474.8 |
|
|
$ |
10.2 |
|
|
$ |
485.0 |
|
Operating margin |
|
|
20.1 |
% |
|
|
|
|
20.5 |
% |
||
|
|
|
317.4 |
|
|
|
0.5 |
|
|
|
317.9 |
|
Operating margin |
|
|
23.0 |
% |
|
|
|
|
23.1 |
% |
||
|
|
|
234.2 |
|
|
|
— |
|
|
|
234.2 |
|
Operating margin |
|
|
22.6 |
% |
|
|
|
|
22.6 |
% |
||
Other non-reportable segments |
|
|
114.1 |
|
|
|
0.1 |
|
|
|
114.2 |
|
Operating margin |
|
|
93.0 |
% |
|
|
|
|
93.0 |
% |
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(476.5 |
) |
|
|
20.5 |
|
|
|
(456.0 |
) |
Total operating income |
|
$ |
664.0 |
|
|
$ |
31.3 |
|
|
$ |
695.3 |
|
FOOTNOTES TO RECONCILIATION OF NON-
- 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) and impairment of assets 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.
- Adjustments for the three months ended
December 30, 2023 include (i) income of$5.0 million related to consideration received fromRegent, L.P. ("Regent") in connection with the Company's previously sold Club Monaco business; (ii) other charges of$4.7 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; (iii) charges of$1.0 million recorded in connection with the Company's restructuring activities, primarily associated with severance and benefit costs; and (iv) non-routine inventory benefits of$0.9 million primarily related to reversals of amounts previously recognized in connection with delays inU.S. customs shipment reviews and approvals. - Adjustments for the nine months ended
December 30, 2023 include (i) charges of$38.3 million recorded in connection with the Company's restructuring activities, primarily associated with severance and benefit costs; (ii) other charges of$14.3 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; (iii) income of$7.0 million related to consideration received from Regent in connection with the Company's previously sold Club Monaco business; (iv) non-routine inventory benefits of$4.5 million primarily related to reversals of amounts previously recognized in connection with delays inU.S. customs shipment reviews and approvals and the COVID-19 pandemic; and (v) benefit of$0.4 million primarily related toRussia -related bad debt reserve adjustments. Additionally, the income tax provision reflects a benefit of$11.8 million recorded in connection with Swiss tax reform and theEuropean Union's anti-tax avoidance directive. - Adjustments for the three months ended
December 31, 2022 include (i) other charges of$7.0 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; (ii) charges of$4.0 million attributable to inventory adjustments due to delays inU.S. customs shipment reviews and approvals; and (iii) charges of$0.8 million recorded in connection with the Company's restructuring activities. - Adjustments for the nine months ended
December 31, 2022 include (i) other charges of$17.6 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; (ii) non-routine inventory charges of$13.2 million largely recorded in connection with theRussia -Ukraine war and delays inU.S. customs shipment reviews and approvals, partially offset by reversals of amounts previously recognized in connection with the COVID-19 pandemic; (iii) charges of$6.4 million recorded in connection with the Company's restructuring activities; (iv) income of$3.5 million related to consideration received from Regent in connection with the Company's previously sold Club Monaco business; and (v) benefit of$2.4 million related toRussia -related bad debt reserve adjustments.
NON-
Because
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 2024 and fourth 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-
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