Ralph Lauren Reports First Quarter Fiscal 2024 Results and Reiterates Full Year Outlook
- First Quarter Revenue Increased Slightly on a Reported Basis and 1% in Constant Currency, Ahead of Expectations, Led by
Asia andEurope - Global Direct-to-Consumer Comparable Store Sales Grew Low-Single Digits in the Quarter, Driven by Strong Full-Price Retail Performance and Double-Digit AUR Growth
- Delivered Gross Margin Expansion, Resulting in Operating Margin and Double-Digit EPS Growth Above Our Expectations, with Continued Brand Elevation More than Offsetting Peak Product Cost Headwinds
- Maintained Healthy Balance Sheet with
$1.7 Billion in Cash and Short-Term Investments and Inventory Growth of 1% - Reiterated Full Year Fiscal 2024 Outlook of Low-Single Digit Net Revenue Growth with Adjusted Gross and Operating Margin Expansion in Constant Currency
"What we do is about the connection between the beauty of an authentic life and the elegance of timeless style," said
"Our solid first quarter performance highlights the unique power and relevance of our iconic brand with consumers around the world along with our diversified engines of growth, and we are reaffirming our full year outlook," said
Key Achievements in First Quarter Fiscal 2024
We delivered the following highlights across our
- Elevate and Energize Our Lifestyle Brand
- Delivered continued momentum in consumer metrics led by growth in luxury and value perception while continuing to expand base of younger, high-value new consumers
- Engaged consumers through key brand moments, notably: iconic celebrity dressing including
Jennifer Lopez at the Met Gala; the return of our Purple Label show at Men's Fashion Week andSalone del Mobile presentation inMilan ; and successfulGolden Week and 6/18 shopping festival inAsia
- Drive the Core and Expand for More
- Increased average unit retail ("AUR") by 15% across our direct-to-consumer network in the first quarter, on top of an 8% increase last year, reflecting our multi-pronged elevation approach
- Drove momentum in our Core business, up mid-single digits to last year, as well as our high-potential categories — including Women's, Outerwear and Home — up low-double digits to last year, both in constant currency
- Product highlights this quarter included our Spring '23 California Dreaming collections, inspired by the natural beauty, optimism and glamour of the
West Coast ; and our POLO® MIRUM® sneaker, our first luxury sneaker that is 100% plastic-free
- Win in Key Cities with Our Consumer Ecosystem
- By region, constant currency sales performance was led by
Asia , up 13% on a reported basis and 18% in constant currency withChina up more than 50% to last year.Europe grew 8% on a reported basis and 7% in constant currency.North America declined 10%, with approximately half of the decline driven by previously reported wholesale timing shifts and the remainder reflecting continued inflationary pressures on our more value-oriented consumers - Continued to expand and scale our key city ecosystems in the first quarter, including a new emblematic store opening in
Amsterdam , RRL store inAtlanta , flagship renovation inMunich and 24 new stores acrossAsia
- By region, constant currency sales performance 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.
First Quarter Fiscal 2024 Income Statement Review
Net Revenue. In the first quarter of Fiscal 2024, revenue increased slightly 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 decreased 10% to$632 million . Results included approximately 5 points of negative impact from a previously reported shift in timing of Spring product receipts into the fourth quarter last year, as the Company returned to a more normalized cadence of seasonal wholesale shipments post-pandemic. In retail, comparable store sales inNorth America were down 6%, including an 8% decrease in digital commerce and a 5% decrease in brick and mortar stores.North America wholesale revenue decreased 16% driven by the normalized timing of Spring shipments following the prior year's global supply chain disruptions.
- Europe Revenue.
Europe revenue in the first quarter increased 8% to$450 million on a reported basis and 7% in constant currency. Results included approximately 5 points of positive impact from earlier timing of wholesale shipments to maximize full-price selling. In retail, comparable store sales inEurope were up 2%, with a 1% increase in brick and mortar stores and an 8% increase in digital commerce.Europe wholesale revenue increased 12% on a reported basis and 11% in constant currency.
- Asia Revenue.
Asia revenue in the first quarter increased 13% to$378 million on a reported basis and 18% in constant currency. Comparable store sales inAsia increased 13%, with a 14% increase in our brick and mortar stores and an 11% increase in digital commerce.
Gross Profit. Gross profit for the first quarter of Fiscal 2024 was
Operating Expenses. Operating expenses in the first quarter of Fiscal 2024 were
Operating Income. Operating income for the first quarter of Fiscal 2024 was
- North America Operating Income.
North America operating income in the first quarter was$125 million on a reported basis and$124 million on an adjusted basis.Adjusted North America operating margin was 19.6%, down 60 basis points to last year, driven by operating expense deleverage as wholesale sales shifted into the prior quarter.
- Europe Operating Income.
Europe operating income in the first quarter was$97 million on both a reported and adjusted basis. AdjustedEurope operating margin was 21.5%, up 380 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 40 basis points in the first quarter.
- Asia Operating Income.
Asia operating income in the first quarter was$93 million on both a reported and adjusted basis. AdjustedAsia operating margin was 24.7%, up 120 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 70 basis points in the first quarter.
Net Income and EPS. Net income in the first quarter of Fiscal 2024 was
In the first quarter of Fiscal 2024, the Company had an effective tax rate of approximately 23% on both a reported and adjusted basis. This compared to an effective tax rate of approximately 24% on both a reported and adjusted basis in the prior year period.
Balance Sheet and Cash Flow Review
The Company ended the first quarter of Fiscal 2024 with
Inventory at the end of the first quarter of Fiscal 2024 was
The Company repurchased approximately
Full Year Fiscal 2024 and Second Quarter Outlook
The Company's outlook is based on its best assessment of the current macroeconomic environment, including inflationary pressures and other consumer spending-related headwinds, foreign currency volatility, and the war in
For Fiscal 2024, the Company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis. Based on current exchange rates, foreign currency is now expected to negatively impact revenue growth by approximately 20 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, driven by gross margin expansion. Foreign currency is expected to have a roughly neutral impact on operating margin in Fiscal 2024. Gross margin is now expected to increase approximately 100 basis points in constant currency, compared to the previous outlook of 50 to 100 basis points expansion, with reduced freight costs, favorable geographic mix and continued growth in AUR more than offsetting product cost inflation. Foreign currency is expected to negatively impact gross margins by approximately 30 basis points in Fiscal 2024. Gross margin expansion is expected to more than offset higher operating expenses as a percent of revenue as the Company invests in long-term strategic growth initiatives, notably digital and key city ecosystem expansion.
For the second quarter, the Company expects revenue to be flat to up slightly to last year in constant currency. Foreign currency is expected to benefit revenue growth by approximately 100 basis points.
Operating margin for the second quarter is expected to be in the range of 9.5% to 10.0% on a reported basis and 9.0% to 9.5% in constant currency. The Company expects constant currency gross margin expansion of 40 to 60 basis points to be more than offset by higher operating expenses due to the timing of strategic investments in the period, with a higher proportion of marketing and ecosystem investments in the second quarter of the fiscal year. Foreign currency is expected to negatively impact gross margin by approximately 10 basis points in the quarter.
Full year Fiscal 2024 tax rate is now expected in the range of approximately 23% to 24%, assuming a continuation of current tax laws, while second quarter tax rate is expected in the range of 21% to 22%.
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 |
|
$ |
1,607.2 |
|
|
$ |
1,529.3 |
|
|
$ |
1,456.8 |
|
Short-term investments |
|
|
73.1 |
|
|
|
36.4 |
|
|
|
320.1 |
|
Accounts receivable, net of allowances |
|
|
345.8 |
|
|
|
447.7 |
|
|
|
350.4 |
|
Inventories |
|
|
1,187.8 |
|
|
|
1,071.3 |
|
|
|
1,178.2 |
|
Income tax receivable |
|
|
51.2 |
|
|
|
50.7 |
|
|
|
54.8 |
|
Prepaid expenses and other current assets |
|
|
208.0 |
|
|
|
188.7 |
|
|
|
217.2 |
|
Total current assets |
|
|
3,473.1 |
|
|
|
3,324.1 |
|
|
|
3,577.5 |
|
Property and equipment, net |
|
|
930.0 |
|
|
|
955.5 |
|
|
|
931.4 |
|
Operating lease right-of-use assets |
|
|
1,106.6 |
|
|
|
1,134.0 |
|
|
|
1,054.5 |
|
Deferred tax assets |
|
|
258.0 |
|
|
|
255.1 |
|
|
|
262.9 |
|
|
|
|
892.5 |
|
|
|
898.9 |
|
|
|
886.5 |
|
Intangible assets, net |
|
|
85.5 |
|
|
|
88.9 |
|
|
|
99.0 |
|
Other non-current assets |
|
|
122.7 |
|
|
|
133.0 |
|
|
|
139.3 |
|
Total assets |
|
$ |
6,868.4 |
|
|
$ |
6,789.5 |
|
|
$ |
6,951.1 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
448.4 |
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|
$ |
371.6 |
|
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$ |
562.1 |
|
Current income tax payable |
|
|
61.8 |
|
|
|
59.7 |
|
|
|
50.1 |
|
Current operating lease liabilities |
|
|
274.5 |
|
|
|
266.7 |
|
|
|
247.2 |
|
Accrued expenses and other current liabilities |
|
|
809.0 |
|
|
|
795.5 |
|
|
|
886.0 |
|
Total current liabilities |
|
|
1,593.7 |
|
|
|
1,493.5 |
|
|
|
1,745.4 |
|
Long-term debt |
|
|
1,139.0 |
|
|
|
1,138.5 |
|
|
|
1,137.0 |
|
Long-term finance lease liabilities |
|
|
307.3 |
|
|
|
315.3 |
|
|
|
331.9 |
|
Long-term operating lease liabilities |
|
|
1,099.2 |
|
|
|
1,141.1 |
|
|
|
1,075.9 |
|
Non-current income tax payable |
|
|
75.9 |
|
|
|
75.9 |
|
|
|
98.9 |
|
Non-current liability for unrecognized tax benefits |
|
|
99.1 |
|
|
|
93.8 |
|
|
|
86.5 |
|
Other non-current liabilities |
|
|
113.2 |
|
|
|
100.9 |
|
|
|
111.4 |
|
Total liabilities |
|
|
4,427.4 |
|
|
|
4,359.0 |
|
|
|
4,587.0 |
|
Equity: |
|
|
|
|
|
|
||||||
Common stock |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
1.3 |
|
Additional paid-in-capital |
|
|
2,845.7 |
|
|
|
2,824.3 |
|
|
|
2,767.0 |
|
Retained earnings |
|
|
6,681.3 |
|
|
|
6,598.2 |
|
|
|
6,347.3 |
|
|
|
|
(6,854.5 |
) |
|
|
(6,797.3 |
) |
|
|
(6,543.4 |
) |
Accumulated other comprehensive loss |
|
|
(232.8 |
) |
|
|
(196.0 |
) |
|
|
(208.1 |
) |
Total equity |
|
|
2,441.0 |
|
|
|
2,430.5 |
|
|
|
2,364.1 |
|
Total liabilities and equity |
|
$ |
6,868.4 |
|
|
$ |
6,789.5 |
|
|
$ |
6,951.1 |
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|
|
|
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|
|
$ |
541.3 |
|
|
$ |
427.2 |
|
|
$ |
639.9 |
|
Cash & Short-term Investments |
|
|
1,680.3 |
|
|
|
1,565.7 |
|
|
|
1,776.9 |
|
____________________
(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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(millions, except per share data) |
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Net revenues |
|
$ |
1,496.5 |
|
|
$ |
1,490.6 |
|
Cost of goods sold |
|
|
(464.5 |
) |
|
|
(489.2 |
) |
Gross profit |
|
|
1,032.0 |
|
|
|
1,001.4 |
|
Selling, general, and administrative expenses |
|
|
(830.0 |
) |
|
|
(820.6 |
) |
Restructuring and other charges, net |
|
|
(35.6 |
) |
|
|
(5.6 |
) |
Total other operating expenses, net |
|
|
(865.6 |
) |
|
|
(826.2 |
) |
Operating income |
|
|
166.4 |
|
|
|
175.2 |
|
Interest expense |
|
|
(10.0 |
) |
|
|
(11.8 |
) |
Interest income |
|
|
15.7 |
|
|
|
3.6 |
|
Other expense, net |
|
|
(1.5 |
) |
|
|
(4.8 |
) |
Income before income taxes |
|
|
170.6 |
|
|
|
162.2 |
|
Income tax provision |
|
|
(38.5 |
) |
|
|
(38.8 |
) |
Net income |
|
$ |
132.1 |
|
|
$ |
123.4 |
|
Net income per common share: |
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||||
Basic |
|
$ |
2.01 |
|
|
$ |
1.76 |
|
Diluted |
|
$ |
1.96 |
|
|
$ |
1.73 |
|
Weighted-average common shares outstanding: |
|
|
|
|
||||
Basic |
|
|
65.9 |
|
|
|
70.1 |
|
Diluted |
|
|
67.4 |
|
|
|
71.5 |
|
Dividends declared per share |
|
$ |
0.75 |
|
|
$ |
0.75 |
|
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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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|
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Net income |
|
$ |
132.1 |
|
|
$ |
123.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization expense |
|
|
58.3 |
|
|
|
54.8 |
|
Deferred income tax expense (benefit) |
|
|
(0.4 |
) |
|
|
26.4 |
|
Stock-based compensation expense |
|
|
21.4 |
|
|
|
18.2 |
|
Bad debt reversals |
|
|
(0.8 |
) |
|
|
(1.9 |
) |
Other non-cash charges |
|
|
3.5 |
|
|
|
5.3 |
|
Changes in operating assets and liabilities: |
|
|
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|
||||
Accounts receivable |
|
|
97.8 |
|
|
|
43.9 |
|
Inventories |
|
|
(128.3 |
) |
|
|
(226.1 |
) |
Prepaid expenses and other current assets |
|
|
(21.8 |
) |
|
|
(70.5 |
) |
Accounts payable and accrued liabilities |
|
|
105.3 |
|
|
|
52.2 |
|
Income tax receivables and payables |
|
|
6.8 |
|
|
|
8.7 |
|
Operating lease right-of-use assets and liabilities, net |
|
|
(6.3 |
) |
|
|
(11.4 |
) |
Other balance sheet changes |
|
|
3.1 |
|
|
|
22.3 |
|
Net cash provided by operating activities |
|
|
270.7 |
|
|
|
45.3 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(39.6 |
) |
|
|
(39.4 |
) |
Purchases of investments |
|
|
(73.3 |
) |
|
|
(141.0 |
) |
Proceeds from sales and maturities of investments |
|
|
35.4 |
|
|
|
552.0 |
|
Other investing activities |
|
|
— |
|
|
|
(6.0 |
) |
Net cash provided by (used in) investing activities |
|
|
(77.5 |
) |
|
|
365.6 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Repayments of long-term debt |
|
|
— |
|
|
|
(500.0 |
) |
Payments of finance lease obligations |
|
|
(6.0 |
) |
|
|
(5.8 |
) |
Payments of dividends |
|
|
(49.2 |
) |
|
|
(48.1 |
) |
Repurchases of common stock, including shares surrendered for tax withholdings |
|
|
(56.8 |
) |
|
|
(234.7 |
) |
Net cash used in financing activities |
|
|
(112.0 |
) |
|
|
(788.6 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(3.9 |
) |
|
|
(30.0 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
77.3 |
|
|
|
(407.7 |
) |
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 |
|
$ |
1,614.2 |
|
|
$ |
1,464.3 |
|
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SEGMENT INFORMATION |
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(Unaudited) |
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Three Months Ended |
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(millions) |
||||||
Net revenues: |
|
|
|
|
||||
|
|
$ |
631.7 |
|
|
$ |
700.7 |
|
|
|
|
450.5 |
|
|
|
415.6 |
|
|
|
|
377.5 |
|
|
|
334.1 |
|
Other non-reportable segments |
|
|
36.8 |
|
|
|
40.2 |
|
Total net revenues |
|
$ |
1,496.5 |
|
|
$ |
1,490.6 |
|
|
|
|
|
|
||||
Operating income: |
|
|
|
|
||||
|
|
$ |
125.3 |
|
|
$ |
132.8 |
|
|
|
|
97.2 |
|
|
|
73.2 |
|
|
|
|
93.3 |
|
|
|
78.7 |
|
Other non-reportable segments |
|
|
33.8 |
|
|
|
37.2 |
|
|
|
|
349.6 |
|
|
|
321.9 |
|
Unallocated corporate expenses |
|
|
(147.6 |
) |
|
|
(141.1 |
) |
Unallocated restructuring and other charges, net |
|
|
(35.6 |
) |
|
|
(5.6 |
) |
Total operating income |
|
$ |
166.4 |
|
|
$ |
175.2 |
|
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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 |
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Constant Currency |
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Digital commerce |
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(8 |
%) |
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Brick and mortar |
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(5 |
%) |
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|||
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(6 |
%) |
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|
|
|
|
|
|
|
|||||
Digital commerce |
|
|
8 |
% |
|
|
|
|
|
|
|||
Brick and mortar |
|
|
1 |
% |
|
|
|
|
|
|
|||
Total |
|
|
2 |
% |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Digital commerce |
|
|
11 |
% |
|
|
|
|
|
|
|||
Brick and mortar |
|
|
14 |
% |
|
|
|
|
|
|
|||
Total |
|
|
13 |
% |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
2 |
% |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Operating Segment Net Revenues Data |
|||||||||||||
|
|
|
|
|
|||||||||
|
|
Three Months Ended |
|
% Change |
|||||||||
|
|
|
|
|
|
As |
|
Constant |
|||||
|
|
(millions) |
|
|
|
|
|||||||
|
|
$ |
631.7 |
|
|
$ |
700.7 |
|
(9.8 |
%) |
|
(9.6 |
%) |
|
|
|
450.5 |
|
|
|
415.6 |
|
8.4 |
% |
|
7.1 |
% |
|
|
|
377.5 |
|
|
|
334.1 |
|
13.0 |
% |
|
17.7 |
% |
Other non-reportable segments |
|
|
36.8 |
|
|
|
40.2 |
|
(8.5 |
%) |
|
(8.5 |
%) |
Net revenues |
|
$ |
1,496.5 |
|
|
$ |
1,490.6 |
|
0.4 |
% |
|
1.2 |
% |
|
||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North |
|
|
|
|
|
Other |
|
Total |
|
North |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
411.0 |
|
$ |
226.7 |
|
$ |
352.1 |
|
$ |
— |
|
$ |
989.8 |
|
$ |
437.8 |
|
$ |
215.9 |
|
$ |
313.9 |
|
$ |
— |
|
$ |
967.6 |
Wholesale |
|
|
220.7 |
|
|
223.8 |
|
|
25.4 |
|
|
— |
|
|
469.9 |
|
|
262.9 |
|
|
199.7 |
|
|
20.2 |
|
|
— |
|
|
482.8 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
36.8 |
|
|
36.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
40.2 |
|
|
40.2 |
Net revenues |
|
$ |
631.7 |
|
$ |
450.5 |
|
$ |
377.5 |
|
$ |
36.8 |
|
$ |
1,496.5 |
|
$ |
700.7 |
|
$ |
415.6 |
|
$ |
334.1 |
|
$ |
40.2 |
|
$ |
1,490.6 |
|
||||
GLOBAL RETAIL STORE NETWORK |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48 |
|
46 |
Polo Outlet Stores |
|
189 |
|
192 |
Total Directly Operated Stores |
|
237 |
|
238 |
Concessions |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
44 |
|
38 |
Polo Outlet Stores |
|
60 |
|
59 |
Total Directly Operated Stores |
|
104 |
|
97 |
Concessions |
|
27 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
123 |
|
101 |
Polo Outlet Stores |
|
96 |
|
90 |
Total Directly Operated Stores |
|
219 |
|
191 |
Concessions |
|
693 |
|
678 |
|
|
|
|
|
Global Directly Operated Stores and Concessions |
|
|
|
|
|
|
215 |
|
185 |
Polo Outlet Stores |
|
345 |
|
341 |
Total Directly Operated Stores |
|
560 |
|
526 |
Concessions |
|
721 |
|
708 |
|
|
|
|
|
Global Licensed Stores |
|
|
|
|
Total Licensed Stores |
|
183 |
|
113 |
|
||||||||||||||||||||
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 |
|
$ |
1,496.5 |
|
|
$ |
— |
|
|
$ |
1,496.5 |
|
|
$ |
11.8 |
|
|
$ |
1,508.3 |
|
Gross profit |
|
|
1,032.0 |
|
|
|
(1.8 |
) |
|
|
1,030.2 |
|
|
|
15.2 |
|
|
|
1,045.4 |
|
Gross profit margin |
|
|
69.0 |
% |
|
|
|
|
68.8 |
% |
|
|
|
|
69.3 |
% |
||||
Total other operating expenses, net |
|
|
(865.6 |
) |
|
|
35.5 |
|
|
|
(830.1 |
) |
|
|
(8.1 |
) |
|
|
(838.2 |
) |
Operating expense margin |
|
|
57.8 |
% |
|
|
|
|
55.5 |
% |
|
|
|
|
55.6 |
% |
||||
Operating income |
|
|
166.4 |
|
|
|
33.7 |
|
|
|
200.1 |
|
|
|
7.1 |
|
|
|
207.2 |
|
Operating margin |
|
|
11.1 |
% |
|
|
|
|
13.4 |
% |
|
|
|
|
13.7 |
% |
||||
Income before income taxes |
|
|
170.6 |
|
|
|
33.7 |
|
|
|
204.3 |
|
|
|
|
|
||||
Income tax provision |
|
|
(38.5 |
) |
|
|
(7.8 |
) |
|
|
(46.3 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
22.6 |
% |
|
|
|
|
22.6 |
% |
|
|
|
|
||||||
Net income |
|
$ |
132.1 |
|
|
$ |
25.9 |
|
|
$ |
158.0 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
1.96 |
|
|
|
|
$ |
2.34 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
631.7 |
|
|
$ |
— |
|
|
$ |
631.7 |
|
|
$ |
1.6 |
|
|
$ |
633.3 |
|
|
|
|
450.5 |
|
|
|
— |
|
|
|
450.5 |
|
|
|
(5.4 |
) |
|
|
445.1 |
|
|
|
|
377.5 |
|
|
|
— |
|
|
|
377.5 |
|
|
|
15.6 |
|
|
|
393.1 |
|
Other non-reportable segments |
|
|
36.8 |
|
|
|
— |
|
|
|
36.8 |
|
|
|
— |
|
|
|
36.8 |
|
Total revenue |
|
$ |
1,496.5 |
|
|
$ |
— |
|
|
$ |
1,496.5 |
|
|
$ |
11.8 |
|
|
$ |
1,508.3 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
125.3 |
|
|
$ |
(1.7 |
) |
|
$ |
123.6 |
|
|
|
|
|
||||
Operating margin |
|
|
19.8 |
% |
|
|
|
|
19.6 |
% |
|
|
|
|
||||||
|
|
|
97.2 |
|
|
|
(0.2 |
) |
|
|
97.0 |
|
|
|
|
|
||||
Operating margin |
|
|
21.6 |
% |
|
|
|
|
21.5 |
% |
|
|
|
|
||||||
|
|
|
93.3 |
|
|
|
— |
|
|
|
93.3 |
|
|
|
|
|
||||
Operating margin |
|
|
24.7 |
% |
|
|
|
|
24.7 |
% |
|
|
|
|
||||||
Other non-reportable segments |
|
|
33.8 |
|
|
|
— |
|
|
|
33.8 |
|
|
|
|
|
||||
Operating margin |
|
|
91.9 |
% |
|
|
|
|
91.9 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(183.2 |
) |
|
|
35.6 |
|
|
|
(147.6 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
166.4 |
|
|
$ |
33.7 |
|
|
$ |
200.1 |
|
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As |
|
Total |
|
As |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
1,490.6 |
|
|
$ |
— |
|
|
$ |
1,490.6 |
|
Gross profit |
|
|
1,001.4 |
|
|
|
11.6 |
|
|
|
1,013.0 |
|
Gross profit margin |
|
|
67.2 |
% |
|
|
|
|
68.0 |
% |
||
Total other operating expenses, net |
|
|
(826.2 |
) |
|
|
3.2 |
|
|
|
(823.0 |
) |
Operating expense margin |
|
|
55.4 |
% |
|
|
|
|
55.2 |
% |
||
Operating income |
|
|
175.2 |
|
|
|
14.8 |
|
|
|
190.0 |
|
Operating margin |
|
|
11.8 |
% |
|
|
|
|
12.7 |
% |
||
Income before income taxes |
|
|
162.2 |
|
|
|
14.8 |
|
|
|
177.0 |
|
Income tax provision |
|
|
(38.8 |
) |
|
|
(3.6 |
) |
|
|
(42.4 |
) |
Effective tax rate |
|
|
23.9 |
% |
|
|
|
|
23.9 |
% |
||
Net income |
|
$ |
123.4 |
|
|
$ |
11.2 |
|
|
$ |
134.6 |
|
Net income per diluted common share |
|
$ |
1.73 |
|
|
|
|
$ |
1.88 |
|
||
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
132.8 |
|
|
$ |
8.9 |
|
|
$ |
141.7 |
|
Operating margin |
|
|
19.0 |
% |
|
|
|
|
20.2 |
% |
||
|
|
|
73.2 |
|
|
|
0.3 |
|
|
|
73.5 |
|
Operating margin |
|
|
17.6 |
% |
|
|
|
|
17.7 |
% |
||
|
|
|
78.7 |
|
|
|
— |
|
|
|
78.7 |
|
Operating margin |
|
|
23.5 |
% |
|
|
|
|
23.5 |
% |
||
Other non-reportable segments |
|
|
37.2 |
|
|
|
— |
|
|
|
37.2 |
|
Operating margin |
|
|
92.4 |
% |
|
|
|
|
92.4 |
% |
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(146.7 |
) |
|
|
5.6 |
|
|
|
(141.1 |
) |
Total operating income |
|
$ |
175.2 |
|
|
$ |
14.8 |
|
|
$ |
190.0 |
|
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) is recorded within selling, general, and administrative ("SG&A") expenses 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 |
|
|
||
(c) |
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 2024 and second 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/20230809096837/en/
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