Ralph Lauren Reports First Quarter Fiscal 2022 Results
- First Quarter Reported Revenues Increased 182% to
$1.4 Billion , Exceeding Expectations Led byNorth America andEurope - Global Digital Ecosystem Accelerated to More than 80% Growth While Owned Digital Commerce Grew More Than 45% to Last Year, with Continued Digital Operating Margin Expansion of
1,400 Basis Points to Fiscal 2020 - First Quarter Average Unit Retail Increased 17% Driven by Continued Brand Elevation and Strong Spring ’21 Full-Priced Selling
- Operating Margin of 16.0% on a Reported Basis and 16.8% on an Adjusted Basis Represents Highest First Quarter Adjusted Margin Since Fiscal 2014 with Better Than Expected Gross Margins and Operating Expense Leverage Despite Higher Marketing Investments
- Full Year Fiscal 2022 Outlook Raised with Constant Currency Revenues Now Expected to Grow 25% to 30% on a 53-Week Basis and Adjusted Operating Margin Expected in the Range of 12.0% to 12.5%
"Quality, a sense of timelessness and a feeling of optimism inspire everything we create," said
"Against the backdrop of stronger than expected re-openings across
Key Achievements in First Quarter Fiscal 2022
As we continued to navigate a volatile global retail environment, we delivered the following highlights across our strategic priorities in the first quarter of Fiscal 2022:
Win Over a New Generation of Consumers- Drove strong consumer engagement with first quarter highlights centered around our Summer of Sports including: our sponsorship of
Team USA at this summer’sTokyo Olympics ,Wimbledon , and our first collection in partnership with MajorLeague Baseball . We also announced our launch as the official outfitter of G2 Esports, a groundbreaking new partnership in fashion and gaming - Accelerated marketing investments as planned, with first quarter spend more than doubling to last year and up nearly 40% compared to first quarter Fiscal 2020 levels. Increased investments focused on supporting new customer acquisition, digitally-amplified brand campaigns and resumption of local in-store activations as markets reopened around the world
- Drove strong consumer engagement with first quarter highlights centered around our Summer of Sports including: our sponsorship of
- Energize Core Products and Accelerate Under-Developed Categories
- Continued to drive our brand elevation strategy across every region with AUR growth of 17% in the first quarter, on top of 25% growth in the prior year. All geographies exceeded our long-term targets of low- to mid-single digit annual AUR growth, led by 39% growth in
North America on improved quality of sales and distribution - Leveraged our icons and the breadth of our lifestyle brand to deliver the right balance of core and seasonal new products as regions emerged from the pandemic, while also continuing to develop high-potential categories led this quarter by outerwear, denim, footwear and home
- Continued to drive our brand elevation strategy across every region with AUR growth of 17% in the first quarter, on top of 25% growth in the prior year. All geographies exceeded our long-term targets of low- to mid-single digit annual AUR growth, led by 39% growth in
- Drive Targeted Expansion in Our Regions and Channels
- Delivered strong growth across every region in the first quarter led by our sales recovery in
North America andEurope , particularly in wholesale.Asia performed in-line with our expectations, with stronger performance inChina andKorea more than offsetting extended COVID-19-related restrictions inJapan , our largest market in the region - Continued momentum in the Chinese mainland, with first quarter sales increasing more than 50% to last year and more than 70% compared to first quarter Fiscal 2020 in constant currency.
Ralph Lauren opened its first digital-forward "Emblematic" retail concept partnering with Tencent inBeijing during the quarter, supporting our key city ecosystem strategy in the region
- Delivered strong growth across every region in the first quarter led by our sales recovery in
- Lead With Digital
- Global digital ecosystem revenues accelerated to more than 80% growth in the first quarter despite traffic starting to return to physical stores, with momentum across both owned and wholesale digital channels globally and led by improvement in
North America - First quarter operating margin in our owned digital business expanded 70 basis points to last year and more than 1,400 basis points to first quarter Fiscal 2020 and were accretive to total company margin rate
- Global digital ecosystem revenues accelerated to more than 80% growth in the first quarter despite traffic starting to return to physical stores, with momentum across both owned and wholesale digital channels globally and led by improvement in
- Operate With Discipline to Fuel Growth
- Adjusted operating margin expanded to 16.8% in the first quarter, compared to (35.7%) last year, driven by significantly better operating expense leverage on stronger revenues, more than offsetting increased marketing investments
- Committed to achieving net zero greenhouse gas emissions by 2040 as part of our 2021 Design the Change report, along with establishing new targets around circularity and diversity and inclusion
- Completed the sale of Club Monaco to Regent at the end of the first quarter as planned, with Chaps on track to transition to a licensed business in second quarter Fiscal 2022, enabling our teams to focus our resources on our core brands as part of our
Next Great Chapter elevation strategy
First Quarter Fiscal 2022 Income Statement Review
Net Revenue. In the first quarter of Fiscal 2022, revenue increased by 182% to
Revenue performance for the Company's reportable segments in the first quarter compared to the prior year period was as follows:
- North America Revenue.
North America revenue in the first quarter increased 301% to$662 million . In retail, comparable store sales inNorth America were up 176%, with a 278% increase in brick and mortar stores and a 51% increase in digital commerce.North America wholesale revenue increased to$250 million compared to$23 million in the prior year period.
- Europe Revenue.
Europe revenue in the first quarter increased 194% to$355 million on a reported basis and increased 179% in constant currency. In retail, comparable store sales inEurope were up 98%, with a 154% increase in brick and mortar stores and a 23% increase in digital commerce.Europe wholesale revenue increased 344% on a reported basis and increased 324% in constant currency.
- Asia Revenue.
Asia revenue in the first quarter increased 68% to$288 million on a reported basis and 61% in constant currency. Comparable store sales inAsia increased 43%, with a 43% increase in our brick and mortar stores and a 42% increase in digital commerce.
Gross Profit. Gross profit for the first quarter of Fiscal 2022 was
Operating Expenses. Operating expenses in the first quarter of Fiscal 2022 were
Operating Income. Operating income for the first quarter of Fiscal 2022 was
- North America Operating Income.
North America operating income in the first quarter was$186 million on a reported basis and$178 million on an adjusted basis.Adjusted North America operating margin was 26.9%, up 5,120 basis points to last year.
- Europe Operating Income.
Europe operating income in the first quarter was$95 million on a reported basis and$94 million on an adjusted basis. AdjustedEurope operating margin was 26.4%, up 4,120 basis points to last year. Foreign currency favorably impacted adjusted operating margin rate by 40 basis points in the first quarter.
- Asia Operating Income.
Asia operating income in the first quarter was$60 million on a reported basis and$61 million on an adjusted basis. AdjustedAsia operating margin was 21.3%, up 1,390 basis points to last year. Foreign currency favorably impacted adjusted operating margin rate by 130 basis points in the first quarter.
Net Income (Loss) and EPS. Net income in the first quarter of Fiscal 2022 was
In the first quarter of Fiscal 2022, the Company had an effective tax rate of approximately 22% on both a reported basis and an adjusted basis. This compared to an effective tax rate of approximately 26% on both a reported basis and an adjusted basis in the prior year period.
Balance Sheet and Cash Flow Review
The Company ended the first quarter of Fiscal 2022 with
Inventory at the end of the first quarter of Fiscal 2022 was
Full Year Fiscal 2022 and Second Quarter Outlook
The Company continues to note the ongoing uncertainty and evolving situation surrounding COVID-19 impacting the timing and path of recovery in each market, including the potential for further outbreaks or resurgences of the pandemic across various markets as well as potential global supply chain disruptions. The full year Fiscal 2022 and second quarter guidance excludes restructuring-related and other charges, as described in the "Non-
For Fiscal 2022, the Company now expects constant currency revenues to increase approximately 25% to 30% to last year on a 53-week reported basis. Foreign currency is expected to positively impact revenue growth by approximately 30 basis points. The 53rd week is expected to represent approximately 140 basis points of this year’s revenue growth.
The Company now expects operating margin for Fiscal 2022 of about 12.0% to 12.5%. This compares to operating margin of 4.8% in the prior year period and 10.3% in Fiscal 2020. Operating margin expansion is expected to be primarily driven by operating expense leverage. Gross margin is now expected to increase 50 to 70 basis points to last year, up from the Company’s previous outlook of a 40 to 60 basis point decline, with stronger average unit retail growth and favorable product mix more than offsetting increased freight headwinds.
For second quarter Fiscal 2022, revenues are expected to increase approximately 20% to 22% in constant currency to last year. Foreign currency is expected to positively impact revenue growth by approximately 50 basis points.
Operating margin for the second quarter is expected in the range of 13.0% to 14.0% driven primarily by operating expense leverage. Gross margin is expected to be flat to up 20 basis points to last year, with average unit retail growth and favorable product mix partly offset by challenging compares over COVID-19-related mix benefits due to store closures from the prior year.
The full year Fiscal 2022 tax rate is now expected to be approximately 24%, assuming a continuation of current tax laws. Second quarter Fiscal 2022 tax rate is expected to be approximately 24% to 25%.
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 statements regarding, among other things, our current expectations about the Company's future results and financial condition, revenues, store openings and closings, employee reductions, margins, expenses, earnings, and citizenship and sustainability goals and are indicated by words or phrases such as "anticipate," "outlook," "estimate," "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. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to certain risks and uncertainties, many of which are unforeseeable and beyond our control. 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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Cash and cash equivalents |
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$ |
2,596.4 |
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$ |
2,579.0 |
|
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$ |
2,451.3 |
|
Short-term investments |
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368.0 |
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197.5 |
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259.3 |
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Accounts receivable, net of allowances |
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367.2 |
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451.5 |
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108.7 |
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Inventories |
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803.0 |
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759.0 |
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773.2 |
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Income tax receivable |
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57.8 |
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54.4 |
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63.9 |
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Prepaid expenses and other current assets |
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185.8 |
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166.6 |
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200.6 |
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Total current assets |
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4,378.2 |
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4,208.0 |
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3,857.0 |
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Property and equipment, net |
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974.6 |
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1,014.0 |
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945.8 |
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Operating lease right-of-use assets |
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1,181.3 |
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1,239.5 |
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1,464.1 |
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Deferred tax assets |
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290.2 |
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283.9 |
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309.5 |
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937.8 |
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934.6 |
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921.9 |
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Intangible assets, net |
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116.6 |
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121.1 |
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136.1 |
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Other non-current assets |
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83.2 |
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86.4 |
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106.0 |
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Total assets |
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$ |
7,961.9 |
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$ |
7,887.5 |
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$ |
7,740.4 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
498.7 |
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$ |
— |
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$ |
299.9 |
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Accounts payable |
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370.3 |
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355.9 |
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144.2 |
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Current income tax payable |
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60.9 |
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50.6 |
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70.9 |
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Current operating lease liabilities |
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284.1 |
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302.9 |
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314.7 |
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Accrued expenses and other current liabilities |
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899.3 |
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875.4 |
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657.2 |
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Total current liabilities |
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2,113.3 |
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1,584.8 |
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1,486.9 |
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Long-term debt |
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1,135.0 |
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1,632.9 |
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1,630.1 |
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Long-term operating lease liabilities |
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1,231.1 |
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1,294.5 |
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1,517.7 |
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Non-current income tax payable |
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118.7 |
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118.7 |
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132.7 |
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Non-current liability for unrecognized tax benefits |
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97.4 |
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91.4 |
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91.7 |
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Other non-current liabilities |
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548.7 |
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560.8 |
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325.8 |
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Total liabilities |
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5,244.2 |
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5,283.1 |
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5,184.9 |
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Equity: |
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Common stock |
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1.3 |
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1.3 |
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1.3 |
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Additional paid-in-capital |
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2,685.5 |
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2,667.1 |
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2,609.5 |
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Retained earnings |
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5,987.1 |
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5,872.9 |
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5,866.3 |
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(5,844.9 |
) |
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(5,816.1 |
) |
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(5,812.3 |
) |
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Accumulated other comprehensive loss |
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(111.3 |
) |
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(120.8 |
) |
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(109.3 |
) |
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Total equity |
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2,717.7 |
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2,604.4 |
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2,555.5 |
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Total liabilities and equity |
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$ |
7,961.9 |
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$ |
7,887.5 |
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$ |
7,740.4 |
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$ |
1,330.7 |
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$ |
1,143.6 |
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$ |
780.6 |
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Cash & Investments(a) |
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2,964.4 |
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2,776.5 |
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2,710.6 |
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_____________ | ||||||||||||
(a) The Company's investments were all classified as short-term for all periods presented. |
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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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(millions, except per share data) |
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$ |
662.1 |
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$ |
165.1 |
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|
354.9 |
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120.7 |
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288.2 |
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171.9 |
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Other non-reportable segments |
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71.1 |
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29.8 |
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Net revenues |
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1,376.3 |
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487.5 |
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Cost of goods sold |
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(408.2 |
) |
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(138.8 |
) |
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Gross profit |
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968.1 |
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348.7 |
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Selling, general, and administrative expenses |
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(728.2 |
) |
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(507.6 |
) |
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Impairment of assets |
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(18.6 |
) |
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(2.1 |
) |
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Restructuring and other charges |
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(0.7 |
) |
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(7.0 |
) |
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Total other operating expenses, net |
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(747.5 |
) |
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(516.7 |
) |
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Operating income (loss) |
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220.6 |
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(168.0 |
) |
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Interest expense |
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(13.3 |
) |
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(9.6 |
) |
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Interest income |
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1.8 |
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2.9 |
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Other income, net |
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0.9 |
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2.1 |
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Income (loss) before income taxes |
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210.0 |
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(172.6 |
) |
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Income tax benefit (provision) |
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(45.3 |
) |
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44.9 |
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Net income (loss) |
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$ |
164.7 |
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$ |
(127.7 |
) |
Net income (loss) per common share: |
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Basic |
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$ |
2.23 |
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$ |
(1.75 |
) |
Diluted |
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$ |
2.18 |
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$ |
(1.75 |
) |
Weighted average common shares outstanding: |
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Basic |
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73.8 |
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73.1 |
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Diluted |
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75.4 |
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73.1 |
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Dividends declared per share |
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$ |
0.6875 |
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$ |
— |
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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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Three Months Ended |
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(millions) |
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Cash flows from operating activities: |
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Net income (loss) |
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$ |
164.7 |
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$ |
(127.7 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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Depreciation and amortization expense |
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57.2 |
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63.7 |
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Deferred income tax expense (benefit) |
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3.8 |
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(66.9 |
) |
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Non-cash stock-based compensation expense |
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18.4 |
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15.1 |
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Non-cash impairment of assets |
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18.6 |
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2.1 |
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Bad debt expense reversals |
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(1.0 |
) |
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(16.5 |
) |
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Other non-cash charges |
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1.1 |
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— |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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81.6 |
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186.3 |
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Inventories |
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(67.7 |
) |
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(29.0 |
) |
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Prepaid expenses and other current assets |
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(20.3 |
) |
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(37.4 |
) |
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Accounts payable and accrued liabilities |
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6.1 |
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(119.2 |
) |
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Income tax receivables and payables |
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4.7 |
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35.2 |
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Deferred income |
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(0.8 |
) |
|
0.3 |
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Other balance sheet changes |
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(18.8 |
) |
|
23.7 |
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Net cash provided by (used in) operating activities |
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247.6 |
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(70.3 |
) |
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Cash flows from investing activities: |
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Capital expenditures |
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(28.2 |
) |
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(21.3 |
) |
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Purchases of investments |
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(368.3 |
) |
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(63.6 |
) |
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Proceeds from sales and maturities of investments |
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197.7 |
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301.9 |
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Other investing activities |
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(0.6 |
) |
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3.7 |
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Net cash provided by (used in) investing activities |
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(199.4 |
) |
|
220.7 |
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Cash flows from financing activities: |
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Repayments of credit facility borrowings |
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— |
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(475.0 |
) |
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Proceeds from the issuance of long-term debt |
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— |
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1,241.9 |
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Payments of finance lease obligations |
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(5.5 |
) |
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(1.6 |
) |
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Payments of dividends |
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— |
|
|
(49.8 |
) |
||
Repurchases of common stock, including shares surrendered for tax withholdings |
|
(28.8 |
) |
|
(33.9 |
) |
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Other financing activities |
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— |
|
|
(8.5 |
) |
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Net cash provided by (used in) financing activities |
|
(34.3 |
) |
|
673.1 |
|
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Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
3.3 |
|
|
7.6 |
|
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Net increase in cash, cash equivalents, and restricted cash |
|
17.2 |
|
|
831.1 |
|
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Cash, cash equivalents, and restricted cash at beginning of period |
|
2,588.0 |
|
|
1,629.8 |
|
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Cash, cash equivalents, and restricted cash at end of period |
|
$ |
2,605.2 |
|
|
$ |
2,460.9 |
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SEGMENT INFORMATION |
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(Unaudited) |
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Three Months Ended |
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(millions) |
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Net revenues: |
|
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|
|
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|
|
$ |
662.1 |
|
|
$ |
165.1 |
|
|
|
354.9 |
|
|
120.7 |
|
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|
|
288.2 |
|
|
171.9 |
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Other non-reportable segments |
|
71.1 |
|
|
29.8 |
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Total net revenues |
|
$ |
1,376.3 |
|
|
$ |
487.5 |
|
|
|
|
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|
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Operating income (loss): |
|
|
|
|
||||
|
|
$ |
186.3 |
|
|
$ |
(24.8 |
) |
|
|
94.5 |
|
|
(16.9 |
) |
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|
|
60.4 |
|
|
10.1 |
|
||
Other non-reportable segments |
|
35.4 |
|
|
0.9 |
|
||
|
|
376.6 |
|
|
(30.7 |
) |
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Unallocated corporate expenses |
|
(155.3 |
) |
|
(130.3 |
) |
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Unallocated restructuring and other charges |
|
(0.7 |
) |
|
(7.0 |
) |
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Total operating income (loss) |
|
$ |
220.6 |
|
|
$ |
(168.0 |
) |
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CONSTANT CURRENCY FINANCIAL MEASURES |
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(Unaudited) |
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Comparable Store Sales Data |
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Three Months Ended |
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|
||||||
|
|
% Change |
|
|
|
|
|
|
||||||
|
|
Constant Currency |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
51 |
% |
|
|
|
|
|
|
|||||
Excluding digital commerce |
|
278 |
% |
|
|
|
|
|
|
|||||
|
|
176 |
% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
23 |
% |
|
|
|
|
|
|
|||||
Excluding digital commerce |
|
154 |
% |
|
|
|
|
|
|
|||||
Total |
|
98 |
% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
42 |
% |
|
|
|
|
|
|
|||||
Excluding digital commerce |
|
43 |
% |
|
|
|
|
|
|
|||||
Total |
|
43 |
% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
||||||
|
|
108 |
% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Operating Segment Net Revenues Data |
||||||||||||||
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
662.1 |
|
|
$ |
165.1 |
|
|
300.9 |
% |
|
300.1 |
% |
|
|
354.9 |
|
|
120.7 |
|
|
194.1 |
% |
|
179.0 |
% |
||
|
|
288.2 |
|
|
171.9 |
|
|
67.7 |
% |
|
60.6 |
% |
||
Other non-reportable segments |
|
71.1 |
|
|
29.8 |
|
|
138.4 |
% |
|
138.2 |
% |
||
Net revenues |
|
$ |
1,376.3 |
|
|
$ |
487.5 |
|
|
182.3 |
% |
|
175.8 |
% |
|
||||||||||||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Retail |
|
$ |
412.2 |
|
|
$ |
170.8 |
|
|
$ |
272.8 |
|
|
$ |
26.8 |
|
|
$ |
882.6 |
|
|
$ |
142.6 |
|
|
$ |
79.2 |
|
|
$ |
166.5 |
|
|
$ |
6.5 |
|
|
$ |
394.8 |
|
Wholesale |
|
249.9 |
|
|
184.1 |
|
|
15.4 |
|
|
5.0 |
|
|
454.4 |
|
|
22.5 |
|
|
41.5 |
|
|
5.4 |
|
|
0.5 |
|
|
69.9 |
|
||||||||||
Licensing |
|
— |
|
|
— |
|
|
— |
|
|
39.3 |
|
|
39.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
22.8 |
|
|
22.8 |
|
||||||||||
Net revenues |
|
$ |
662.1 |
|
|
$ |
354.9 |
|
|
$ |
288.2 |
|
|
$ |
71.1 |
|
|
$ |
1,376.3 |
|
|
$ |
165.1 |
|
|
$ |
120.7 |
|
|
$ |
171.9 |
|
|
$ |
29.8 |
|
|
$ |
487.5 |
|
|
||||||
GLOBAL RETAIL STORE NETWORK |
||||||
(Unaudited) |
||||||
|
|
|
|
|
||
|
|
|
|
|
||
|
|
|
|
|
||
|
|
39 |
|
|
41 |
|
Polo Factory Stores |
|
194 |
|
|
189 |
|
Total Directly Operated Stores |
|
233 |
|
|
230 |
|
Concessions |
|
1 |
|
|
2 |
|
|
|
|
|
|
||
|
|
|
|
|
||
|
|
34 |
|
|
31 |
|
Polo Factory Stores |
|
60 |
|
|
64 |
|
Total Directly Operated Stores |
|
94 |
|
|
95 |
|
Concessions |
|
29 |
|
|
29 |
|
|
|
|
|
|
||
|
|
|
|
|
||
|
|
82 |
|
|
68 |
|
Polo Factory Stores |
|
73 |
|
|
68 |
|
Total Directly Operated Stores |
|
155 |
|
|
136 |
|
Concessions |
|
617 |
|
|
619 |
|
|
|
|
|
|
||
Other |
|
|
|
|
||
Club Monaco Stores |
|
— |
|
|
72 |
|
Club Monaco Concessions |
|
— |
|
|
4 |
|
|
|
|
|
|
||
Global Directly Operated Stores and Concessions |
|
|
|
|
||
|
|
155 |
|
|
140 |
|
Polo Factory Stores |
|
327 |
|
|
321 |
|
Club Monaco Stores |
|
— |
|
|
72 |
|
Total Directly Operated Stores |
|
482 |
|
|
533 |
|
Concessions |
|
647 |
|
|
654 |
|
|
|
|
|
|
||
Global Licensed Stores |
|
|
|
|
||
Total Licensed Stores |
|
141 |
|
|
273 |
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(b) |
|
As Adjusted |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
1,376.3 |
|
|
$ |
— |
|
|
$ |
1,376.3 |
|
Gross profit |
|
968.1 |
|
|
(8.0 |
) |
|
960.1 |
|
|||
Gross profit margin |
|
70.3 |
% |
|
|
|
69.8 |
% |
||||
Total other operating expenses, net |
|
(747.5 |
) |
|
18.4 |
|
|
(729.1 |
) |
|||
Operating expense margin |
|
54.3 |
% |
|
|
|
53.0 |
% |
||||
Operating income |
|
220.6 |
|
|
10.4 |
|
|
231.0 |
|
|||
Operating margin |
|
16.0 |
% |
|
|
|
16.8 |
% |
||||
Income before income taxes |
|
210.0 |
|
|
10.4 |
|
|
220.4 |
|
|||
Income tax provision |
|
(45.3 |
) |
|
(2.7 |
) |
|
(48.0 |
) |
|||
Effective tax rate |
|
21.6 |
% |
|
|
|
21.8 |
% |
||||
Net income |
|
$ |
164.7 |
|
|
$ |
7.7 |
|
|
$ |
172.4 |
|
Net income per diluted common share |
|
$ |
2.18 |
|
|
|
|
$ |
2.29 |
|
||
Weighted average common shares outstanding - Diluted |
|
75.4 |
|
|
|
|
75.4 |
|
||||
SEGMENT INFORMATION - OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
186.3 |
|
|
$ |
(8.0 |
) |
|
$ |
178.3 |
|
Operating margin |
|
28.1 |
% |
|
|
|
26.9 |
% |
||||
|
|
94.5 |
|
|
(0.9 |
) |
|
93.6 |
|
|||
Operating margin |
|
26.6 |
% |
|
|
|
26.4 |
% |
||||
|
|
60.4 |
|
|
1.1 |
|
|
61.5 |
|
|||
Operating margin |
|
20.9 |
% |
|
|
|
21.3 |
% |
||||
Other non-reportable segments |
|
35.4 |
|
|
— |
|
|
35.4 |
|
|||
Operating margin |
|
49.8 |
% |
|
|
|
49.8 |
% |
||||
Unallocated corporate expenses and restructuring & other charges |
|
(156.0 |
) |
|
18.2 |
|
|
(137.8 |
) |
|||
Total operating income |
|
$ |
220.6 |
|
|
$ |
10.4 |
|
|
$ |
231.0 |
|
|
|
|
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(c) |
|
As Adjusted |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
487.5 |
|
|
$ |
— |
|
|
$ |
487.5 |
|
Gross profit |
|
348.7 |
|
|
1.3 |
|
|
350.0 |
|
|||
Gross profit margin |
|
71.5 |
% |
|
|
|
71.8 |
% |
||||
Total other operating expenses, net |
|
(516.7 |
) |
|
(7.4 |
) |
|
(524.1 |
) |
|||
Operating expense margin |
|
106.0 |
% |
|
|
|
107.5 |
% |
||||
Operating loss |
|
(168.0 |
) |
|
(6.1 |
) |
|
(174.1 |
) |
|||
Operating margin |
|
(34.5 |
%) |
|
|
|
(35.7 |
%) |
||||
Loss before income taxes |
|
(172.6 |
) |
|
(6.1 |
) |
|
(178.7 |
) |
|||
Income tax benefit |
|
44.9 |
|
|
0.6 |
|
|
45.5 |
|
|||
Effective tax rate |
|
26.0 |
% |
|
|
|
25.5 |
% |
||||
Net loss |
|
$ |
(127.7 |
) |
|
$ |
(5.5 |
) |
|
$ |
(133.2 |
) |
Net loss per diluted common share |
|
$ |
(1.75 |
) |
|
|
|
$ |
(1.82 |
) |
||
Weighted average common shares outstanding - Diluted |
|
73.1 |
|
|
|
|
73.1 |
|
||||
SEGMENT INFORMATION - OPERATING INCOME (LOSS): |
|
|
|
|
|
|
||||||
|
|
$ |
(24.8 |
) |
|
$ |
(15.3 |
) |
|
$ |
(40.1 |
) |
Operating margin |
|
(15.0 |
%) |
|
|
|
(24.3 |
%) |
||||
|
|
(16.9 |
) |
|
(1.0 |
) |
|
(17.9 |
) |
|||
Operating margin |
|
(14.0 |
%) |
|
|
|
(14.8 |
%) |
||||
|
|
10.1 |
|
|
2.6 |
|
|
12.7 |
|
|||
Operating margin |
|
5.9 |
% |
|
|
|
7.4 |
% |
||||
Other non-reportable segments |
|
0.9 |
|
|
0.6 |
|
|
1.5 |
|
|||
Operating margin |
|
3.0 |
% |
|
|
|
5.0 |
% |
||||
Unallocated corporate expenses and restructuring & other charges |
|
(137.3 |
) |
|
7.0 |
|
|
(130.3 |
) |
|||
Total operating loss |
|
$ |
(168.0 |
) |
|
$ |
(6.1 |
) |
|
$ |
(174.1 |
) |
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As Reported |
|
Total Adjustments(a)(d) |
|
As Adjusted |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
1,428.8 |
|
|
$ |
— |
|
|
$ |
1,428.8 |
|
Gross profit |
|
920.8 |
|
|
0.6 |
|
|
921.4 |
|
|||
Gross profit margin |
|
64.4 |
% |
|
|
|
64.5 |
% |
||||
Total other operating expenses, net |
|
(777.5 |
) |
|
30.8 |
|
|
(746.7 |
) |
|||
Operating expense margin |
|
54.4 |
% |
|
|
|
52.3 |
% |
||||
Operating income |
|
143.3 |
|
|
31.4 |
|
|
174.7 |
|
|||
Operating margin |
|
10.0 |
% |
|
|
|
12.2 |
% |
||||
Income before income taxes |
|
146.6 |
|
|
31.4 |
|
|
178.0 |
|
|||
Income tax provision |
|
(29.5 |
) |
|
(7.0 |
) |
|
(36.5 |
) |
|||
Effective tax rate |
|
20.1 |
% |
|
|
|
20.5 |
% |
||||
Net income |
|
$ |
117.1 |
|
|
$ |
24.4 |
|
|
$ |
141.5 |
|
Net income per diluted common share |
|
$ |
1.47 |
|
|
|
|
$ |
1.77 |
|
||
Weighted average common shares outstanding - Diluted |
|
79.9 |
|
|
|
|
79.9 |
|
||||
SEGMENT INFORMATION - OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
150.1 |
|
|
$ |
— |
|
|
$ |
150.1 |
|
Operating margin |
|
20.9 |
% |
|
|
|
20.9 |
% |
||||
|
|
79.4 |
|
|
0.1 |
|
|
79.5 |
|
|||
Operating margin |
|
22.0 |
% |
|
|
|
22.0 |
% |
||||
|
|
48.1 |
|
|
0.5 |
|
|
48.6 |
|
|||
Operating margin |
|
18.6 |
% |
|
|
|
18.8 |
% |
||||
Other non-reportable segments |
|
32.9 |
|
|
— |
|
|
32.9 |
|
|||
Operating margin |
|
36.5 |
% |
|
|
|
36.5 |
% |
||||
Unallocated corporate expenses and restructuring & other charges |
|
(167.2 |
) |
|
30.8 |
|
|
(136.4 |
) |
|||
Total operating income |
|
$ |
143.3 |
|
|
$ |
31.4 |
|
|
$ |
174.7 |
|
|
|
(a) |
Adjustments for inventory-related charges (benefits) are recorded within cost of goods sold in the consolidated statements of operations. Adjustments for COVID-19-related bad debt expense (benefit) is recorded within selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Adjustments for impairment-related charges are recorded within impairment of assets in the consolidated statements of operations. Adjustments for all other charges are recorded within restructuring and other charges in the consolidated statements of operations. |
|
|
(b) |
Adjustments for the three months ended |
|
|
(c) |
Adjustments for the three months ended |
|
|
(d) |
Adjustments for the three months ended |
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 2022 and second quarter guidance excludes certain anticipated restructuring-related and other charges. 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/20210803005177/en/
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