Ralph Lauren Reports First Quarter Fiscal 2025 Results and Reaffirms Full Year Outlook
- First Quarter Revenue Increased 1% on a Reported Basis and 3% in Constant Currency, Ahead of Expectations Led by Growth in
Europe and Asia - Global Direct-to-Consumer Comparable Store Sales Grew 5%, Driven by Positive Retail Comps Across All Regions
- Adjusted Gross and Operating Margin Expansion Exceeded Our Outlook, with Brand Elevation and Expense Discipline More than Offsetting Investments in Marketing and Ecosystem Expansion
- Maintained Healthy Balance Sheet Including
$1.8 Billion in Cash and Short-Term Investments and Well Positioned Inventories, Down 13% to Last Year - Returned Approximately
$225 Million to Shareholders Through Our Dividend and Repurchase of Class A Common Stock - Reaffirmed Full Year Fiscal 2025 Outlook of Low-Single Digit Revenue Growth and Adjusted Operating Margin Expansion of
100 to 120 Basis Points , Both in Constant Currency Compared to Prior Year
"Our brand has always been about inspiring a better life and celebrating the moments that bring us together," said
"We delivered a solid start to the year, with first quarter performance exceeding our expectations on the top- and bottom-line led by our direct-to-consumer and international businesses," said
Key Achievements in First Quarter Fiscal 2025
We delivered the following highlights across our
- Elevate and Energize Our Lifestyle Brand
- Drove continued momentum in new customer acquisition and loyalty with 1.3 million new consumers in our direct-to-consumer businesses, growth in net promoter scores, and more than 60 million social media followers, a low-teens increase to last year
- Invested in key brand moments to drive authentic connections with consumers around the world, notably: our women's Collection fashion show in
New York City in April; Only Polo campaign celebrating our summer icons; our annualSalone del Mobile and men's Purple Label presentation inMilan ; another successful 6/18 holiday event inChina ; and kick-off of our 2024 Paris Olympics campaign as official outfitter ofTeam USA
- Drive the Core and Expand for More
- Drove continued momentum in our Core business, up low-single digits, along with our high-potential categories (
Women's Apparel , Outerwear, and Handbags), which increased mid-single-digits to last year in constant currency and outpaced total company growth
- Product highlights this quarter included: our
Wimbledon capsule, featuring tennis-inspired spectator styles; and our 2024 Paris Summer Olympics collections as official outfitter ofTeam USA
- Increased average unit retail ("AUR") by 6% across our direct-to-consumer network in the first quarter, in-line with expectations and on top of a 15% increase last year, reflecting the durability of our multi-pronged elevation approach
- Win in Key Cities with Our Consumer Ecosystem
- By geography, revenue growth was led by
Europe , up 6% on a reported basis and 7% in constant currency, exceeding our expectations.Asia sales grew 4% on a reported basis and 9% in constant currency, withChina up high-single digits on a reported basis and up low-double digits in constant currency to last year.North America declined 4% as stronger direct-to-consumer performance was more than offset by planned declines in wholesale
- Continued to expand and scale our key city ecosystems with the opening of 8 new owned and partnered stores in the first quarter. We also recently unveiled our newly-renovated World of
Ralph Lauren store onChicago's Michigan Avenue , including our iconic RL restaurant and our first Ralph's Coffee shop in the Midwest
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 2025 Income Statement Review
Net Revenue. In the first quarter of Fiscal 2025, revenue increased 1% 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 4% to$608 million . In retail, comparable store sales inNorth America increased 1%, with a 3% increase in brick and mortar stores more than offsetting a 4% decrease in digital commerce. A shift in the timing of Easter negatively impacted first quarter comps by approximately 120 basis points.North America wholesale revenue decreased 13%, in-line with our outlook, driven by receipt timing shifts and a reduction in excess product sales to the off-price wholesale channel, as planned.
- Europe Revenue.
Europe revenue in the first quarter increased 6% to$479 million on a reported basis and 7% in constant currency. In retail, comparable store sales inEurope increased 8%, ahead of our expectations, with a 7% increase in brick and mortar stores and a 14% increase in digital commerce.Europe wholesale revenue increased 5% to prior year on both a reported and constant currency basis, with stronger re-order trends more than offsetting negative impacts from previously disclosed timing receipt shifts.
- Asia Revenue.
Asia revenue in the first quarter increased 4% to$391 million on a reported basis and 9% in constant currency, slightly ahead of our expectations. Comparable store sales inAsia increased 9%, with a 7% increase in our brick and mortar stores and a 21% increase in digital commerce.
Gross Profit. Gross profit for the first quarter of Fiscal 2025 was
Operating Expenses. Operating expenses in the first quarter of Fiscal 2025 were
Operating Income. Operating income for the first quarter of Fiscal 2025 was
- North America Operating Income.
North America operating income in the first quarter was$120 million on both a reported and adjusted basis.Adjusted North America operating margin was 19.7%, up 10 basis points to last year.
- Europe Operating Income.
Europe operating income in the first quarter was$121 million on both a reported and adjusted basis. AdjustedEurope operating margin was 25.2%, up 370 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 50 basis points in the first quarter.
- Asia Operating Income.
Asia operating income in the first quarter was$107 million on both a reported and adjusted basis. AdjustedAsia operating margin was 27.4%, up 270 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 30 basis points in the first quarter.
Net Income and EPS. Net income in the first quarter of Fiscal 2025 was
In the first quarter of Fiscal 2025, the Company had an effective tax rate of approximately 22% on both a reported and 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 modest decline was driven primarily by favorable tax credits, more than offsetting the absence of discrete foreign tax benefits realized in the prior year period.
Balance Sheet and Cash Flow Review
The Company ended the first quarter of Fiscal 2025 with
Inventory at the end of the first quarter of Fiscal 2025 was
The Company repurchased approximately
Full Year Fiscal 2025 and Second 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 2025 and second quarter guidance excludes any potential restructuring-related and other net charges that may be incurred in future periods, as described in the "Non-
For Fiscal 2025, the Company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis, centering on around 2% to 3%. Based on current exchange rates, foreign currency is now expected to negatively impact revenue growth by approximately 150 basis points in Fiscal 2025.
The Company continues to expect operating margin for Fiscal 2025 to expand approximately 100 to 120 basis points in constant currency, driven by gross margin expansion and operating expense leverage. Gross margin is expected to increase approximately 50 to 100 basis points in constant currency. Foreign currency is now expected to negatively impact gross and operating margins by approximately 40 basis points.
For the second quarter, the Company expects constant currency revenues to grow approximately low- to mid-single digits to last year, in a range centered around 3% to 4%. Foreign currency is expected to negatively impact revenue growth by approximately 160 basis points.
Operating margin for the second quarter is expected to expand approximately 80 to 120 basis points in constant currency, with roughly 110 to 130 basis points of gross margin expansion more than offsetting higher planned operating expenses to support key marketing campaigns in the quarter. Excluding marketing expense, operating expenses are expected to decline slightly as a percent of sales compared to prior year. Foreign currency is expected to negatively impact gross and operating margins by approximately 40 and 50 basis points, respectively, in the second quarter.
The Company's full year Fiscal 2025 tax rate is now expected to be in the range of approximately 22% to 23%, increasing from 19% in the prior year, following discrete tax benefits recognized in the prior year period. The second quarter tax rate is expected to be in the range of 21% to 22%.
The Company continues to expect capital expenditures for Fiscal 2025 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 citizenship and sustainability goals. Forward-looking statements are based on current expectations and are indicated by words or phrases such as "aim," "anticipate," "outlook," "estimate," "ensure," "commit," "expect," "project," "believe," "envision," "goal," "target," "can," "will," and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance, or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. The factors that could cause actual results to materially differ include, among others: the loss of key personnel, including Mr.
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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 |
|
$ |
1,586.9 |
|
|
$ |
1,662.2 |
|
|
$ |
1,607.2 |
|
Short-term investments |
|
|
173.6 |
|
|
|
121.0 |
|
|
|
73.1 |
|
Accounts receivable, net of allowances |
|
|
371.8 |
|
|
|
446.5 |
|
|
|
345.8 |
|
Inventories |
|
|
1,039.1 |
|
|
|
902.2 |
|
|
|
1,187.8 |
|
Income tax receivable |
|
|
50.6 |
|
|
|
56.0 |
|
|
|
51.2 |
|
Prepaid expenses and other current assets |
|
|
225.9 |
|
|
|
171.9 |
|
|
|
208.0 |
|
Total current assets |
|
|
3,447.9 |
|
|
|
3,359.8 |
|
|
|
3,473.1 |
|
Property and equipment, net |
|
|
826.0 |
|
|
|
850.4 |
|
|
|
930.0 |
|
Operating lease right-of-use assets |
|
|
1,019.3 |
|
|
|
1,014.6 |
|
|
|
1,106.6 |
|
Deferred tax assets |
|
|
266.6 |
|
|
|
288.3 |
|
|
|
258.0 |
|
|
|
|
882.6 |
|
|
|
888.1 |
|
|
|
892.5 |
|
Intangible assets, net |
|
|
72.5 |
|
|
|
75.7 |
|
|
|
85.5 |
|
Other non-current assets |
|
|
126.1 |
|
|
|
125.7 |
|
|
|
122.7 |
|
Total assets |
|
$ |
6,641.0 |
|
|
$ |
6,602.6 |
|
|
$ |
6,868.4 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
|
$ |
477.8 |
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|
$ |
332.2 |
|
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$ |
448.4 |
|
Current income tax payable |
|
|
58.3 |
|
|
|
79.8 |
|
|
|
61.8 |
|
Current operating lease liabilities |
|
|
236.0 |
|
|
|
245.5 |
|
|
|
274.5 |
|
Accrued expenses and other current liabilities |
|
|
801.5 |
|
|
|
809.7 |
|
|
|
809.0 |
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Total current liabilities |
|
|
1,573.6 |
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|
|
1,467.2 |
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|
|
1,593.7 |
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Long-term debt |
|
|
1,141.1 |
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|
|
1,140.5 |
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|
|
1,139.0 |
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Long-term finance lease liabilities |
|
|
249.9 |
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|
256.1 |
|
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|
307.3 |
|
Long-term operating lease liabilities |
|
|
1,036.1 |
|
|
|
1,014.0 |
|
|
|
1,099.2 |
|
Non-current income tax payable |
|
|
42.2 |
|
|
|
42.2 |
|
|
|
75.9 |
|
Non-current liability for unrecognized tax benefits |
|
|
123.3 |
|
|
|
118.7 |
|
|
|
99.1 |
|
Other non-current liabilities |
|
|
107.8 |
|
|
|
113.6 |
|
|
|
113.2 |
|
Total liabilities |
|
|
4,274.0 |
|
|
|
4,152.3 |
|
|
|
4,427.4 |
|
Equity: |
|
|
|
|
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|
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Common stock |
|
|
1.3 |
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|
1.3 |
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|
|
1.3 |
|
Additional paid-in-capital |
|
|
2,948.1 |
|
|
|
2,923.8 |
|
|
|
2,845.7 |
|
Retained earnings |
|
|
7,168.7 |
|
|
|
7,051.6 |
|
|
|
6,681.3 |
|
|
|
|
(7,453.0 |
) |
|
|
(7,250.3 |
) |
|
|
(6,854.5 |
) |
Accumulated other comprehensive loss |
|
|
(298.1 |
) |
|
|
(276.1 |
) |
|
|
(232.8 |
) |
Total equity |
|
|
2,367.0 |
|
|
|
2,450.3 |
|
|
|
2,441.0 |
|
Total liabilities and equity |
|
$ |
6,641.0 |
|
|
$ |
6,602.6 |
|
|
$ |
6,868.4 |
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|
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$ |
619.4 |
|
|
$ |
642.7 |
|
|
$ |
541.3 |
|
Cash & Short-term Investments |
|
|
1,760.5 |
|
|
|
1,783.2 |
|
|
|
1,680.3 |
|
___________________ | ||||||||||||
(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 |
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$ |
1,512.2 |
|
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$ |
1,496.5 |
|
Cost of goods sold |
|
|
(446.4 |
) |
|
|
(464.5 |
) |
Gross profit |
|
|
1,065.8 |
|
|
|
1,032.0 |
|
Selling, general, and administrative expenses |
|
|
(849.9 |
) |
|
|
(830.0 |
) |
Restructuring and other charges, net |
|
|
(7.4 |
) |
|
|
(35.6 |
) |
Total other operating expenses, net |
|
|
(857.3 |
) |
|
|
(865.6 |
) |
Operating income |
|
|
208.5 |
|
|
|
166.4 |
|
Interest expense |
|
|
(10.9 |
) |
|
|
(10.0 |
) |
Interest income |
|
|
20.1 |
|
|
|
15.7 |
|
Other expense, net |
|
|
(1.1 |
) |
|
|
(1.5 |
) |
Income before income taxes |
|
|
216.6 |
|
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|
170.6 |
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Income tax provision |
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|
(48.0 |
) |
|
|
(38.5 |
) |
Net income |
|
$ |
168.6 |
|
|
$ |
132.1 |
|
Net income per common share: |
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Basic |
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$ |
2.67 |
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$ |
2.01 |
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Diluted |
|
$ |
2.61 |
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$ |
1.96 |
|
Weighted-average common shares outstanding: |
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Basic |
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|
63.2 |
|
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|
65.9 |
|
Diluted |
|
|
64.6 |
|
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|
67.4 |
|
Dividends declared per share |
|
$ |
0.825 |
|
|
$ |
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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Net income |
|
$ |
168.6 |
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|
$ |
132.1 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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||||
Depreciation and amortization expense |
|
|
54.4 |
|
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|
58.3 |
|
Deferred income tax expense (benefit) |
|
|
12.3 |
|
|
|
(0.4 |
) |
Stock-based compensation expense |
|
|
24.3 |
|
|
|
21.4 |
|
Bad debt expense (reversals) |
|
|
0.8 |
|
|
|
(0.8 |
) |
Other non-cash charges |
|
|
0.6 |
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|
3.5 |
|
Changes in operating assets and liabilities: |
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||||
Accounts receivable |
|
|
70.3 |
|
|
|
97.8 |
|
Inventories |
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|
(145.5 |
) |
|
|
(128.3 |
) |
Prepaid expenses and other current assets |
|
|
(58.1 |
) |
|
|
(21.8 |
) |
Accounts payable and accrued liabilities |
|
|
145.6 |
|
|
|
105.3 |
|
Income tax receivables and payables |
|
|
(0.5 |
) |
|
|
6.8 |
|
Operating lease right-of-use assets and liabilities, net |
|
|
8.0 |
|
|
|
(6.3 |
) |
Other balance sheet changes |
|
|
(3.5 |
) |
|
|
3.1 |
|
Net cash provided by operating activities |
|
|
277.3 |
|
|
|
270.7 |
|
Cash flows from investing activities: |
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Capital expenditures |
|
|
(33.4 |
) |
|
|
(39.6 |
) |
Purchases of investments |
|
|
(174.3 |
) |
|
|
(73.3 |
) |
Proceeds from sales and maturities of investments |
|
|
119.1 |
|
|
|
35.4 |
|
Other investing activities |
|
|
1.0 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(87.6 |
) |
|
|
(77.5 |
) |
Cash flows from financing activities: |
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||||
Payments of finance lease obligations |
|
|
(4.9 |
) |
|
|
(6.0 |
) |
Payments of dividends |
|
|
(47.5 |
) |
|
|
(49.2 |
) |
Repurchases of common stock, including shares surrendered for tax withholdings |
|
|
(201.2 |
) |
|
|
(56.8 |
) |
Net cash used in financing activities |
|
|
(253.6 |
) |
|
|
(112.0 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(13.1 |
) |
|
|
(3.9 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(77.0 |
) |
|
|
77.3 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,670.6 |
|
|
|
1,536.9 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
1,593.6 |
|
|
$ |
1,614.2 |
|
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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: |
|
|
|
|
||||
|
|
$ |
608.2 |
|
|
$ |
631.7 |
|
|
|
|
479.1 |
|
|
|
450.5 |
|
|
|
|
390.9 |
|
|
|
377.5 |
|
Other non-reportable segments |
|
|
34.0 |
|
|
|
36.8 |
|
Total net revenues |
|
$ |
1,512.2 |
|
|
$ |
1,496.5 |
|
|
|
|
|
|
||||
Operating income: |
|
|
|
|
||||
|
|
$ |
119.8 |
|
|
$ |
125.3 |
|
|
|
|
120.6 |
|
|
|
97.2 |
|
|
|
|
107.2 |
|
|
|
93.3 |
|
Other non-reportable segments |
|
|
29.6 |
|
|
|
33.8 |
|
|
|
|
377.2 |
|
|
|
349.6 |
|
Unallocated corporate expenses |
|
|
(161.3 |
) |
|
|
(147.6 |
) |
Unallocated restructuring and other charges, net |
|
|
(7.4 |
) |
|
|
(35.6 |
) |
Total operating income |
|
$ |
208.5 |
|
|
$ |
166.4 |
|
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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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(4 |
%) |
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Brick and mortar |
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3 |
% |
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|
1 |
% |
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|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Digital commerce |
|
|
14 |
% |
|
|
|
|
|
|
|||
Brick and mortar |
|
|
7 |
% |
|
|
|
|
|
|
|||
Total |
|
|
8 |
% |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Digital commerce |
|
|
21 |
% |
|
|
|
|
|
|
|||
Brick and mortar |
|
|
7 |
% |
|
|
|
|
|
|
|||
Total |
|
|
9 |
% |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
5 |
% |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
Operating Segment Net Revenues Data |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended |
|
% Change |
|||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
|||||
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
608.2 |
|
|
$ |
631.7 |
|
(3.7 |
%) |
|
(3.6 |
%) |
|
|
|
479.1 |
|
|
|
450.5 |
|
6.3 |
% |
|
7.2 |
% |
|
|
|
390.9 |
|
|
|
377.5 |
|
3.6 |
% |
|
9.4 |
% |
Other non-reportable segments |
|
|
34.0 |
|
|
|
36.8 |
|
(7.5 |
%) |
|
(7.5 |
%) |
Net revenues |
|
$ |
1,512.2 |
|
|
$ |
1,496.5 |
|
1.1 |
% |
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North |
|
|
|
|
|
Other |
|
Total |
|
North |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
416.7 |
|
$ |
245.1 |
|
$ |
370.8 |
|
$ |
— |
|
$ |
1,032.6 |
|
$ |
411.0 |
|
$ |
226.7 |
|
$ |
352.1 |
|
$ |
— |
|
$ |
989.8 |
Wholesale |
|
|
191.5 |
|
|
234.0 |
|
|
20.1 |
|
|
— |
|
|
445.6 |
|
|
220.7 |
|
|
223.8 |
|
|
25.4 |
|
|
— |
|
|
469.9 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
34.0 |
|
|
34.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
36.8 |
|
|
36.8 |
Net revenues |
|
$ |
608.2 |
|
$ |
479.1 |
|
$ |
390.9 |
|
$ |
34.0 |
|
$ |
1,512.2 |
|
$ |
631.7 |
|
$ |
450.5 |
|
$ |
377.5 |
|
$ |
36.8 |
|
$ |
1,496.5 |
|
||||
GLOBAL RETAIL STORE NETWORK |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50 |
|
48 |
Outlet Stores |
|
178 |
|
189 |
Total Directly Operated Stores |
|
228 |
|
237 |
Concessions |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
44 |
|
44 |
Outlet Stores |
|
59 |
|
60 |
Total Directly Operated Stores |
|
103 |
|
104 |
Concessions |
|
27 |
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
141 |
|
123 |
Outlet Stores |
|
93 |
|
96 |
Total Directly Operated Stores |
|
234 |
|
219 |
Concessions |
|
669 |
|
693 |
|
|
|
|
|
Global Directly Operated Stores and Concessions |
|
|
|
|
|
|
235 |
|
215 |
Outlet Stores |
|
330 |
|
345 |
Total Directly Operated Stores |
|
565 |
|
560 |
Concessions |
|
697 |
|
721 |
|
|
|
|
|
Global Licensed Partner Stores |
|
|
|
|
Total Licensed Partner Stores |
|
101 |
|
90 |
|
|
||||||||||||||||||||
RECONCILIATION OF NON- |
|
||||||||||||||||||||
(Unaudited) |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
Foreign |
|
As |
|
||||||||||
|
|
(millions, except per share data) |
|
||||||||||||||||||
Net revenues |
|
$ |
1,512.2 |
|
|
$ |
— |
|
|
$ |
1,512.2 |
|
|
$ |
26.1 |
|
|
$ |
1,538.3 |
|
|
Gross profit |
|
|
1,065.8 |
|
|
|
— |
|
|
|
1,065.8 |
|
|
|
24.8 |
|
|
|
1,090.6 |
|
|
Gross profit margin |
|
|
70.5 |
% |
|
|
|
|
70.5 |
% |
|
|
|
|
70.9 |
% |
|
||||
Total other operating expenses, net |
|
|
(857.3 |
) |
|
|
7.4 |
|
|
|
(849.9 |
) |
|
|
(13.8 |
) |
|
|
(863.7 |
) |
(d) |
Operating expense margin |
|
|
56.7 |
% |
|
|
|
|
56.2 |
% |
|
|
|
|
56.1 |
% |
|
||||
Operating income |
|
|
208.5 |
|
|
|
7.4 |
|
|
|
215.9 |
|
|
|
11.0 |
|
|
|
226.9 |
|
|
Operating margin |
|
|
13.8 |
% |
|
|
|
|
14.3 |
% |
|
|
|
|
14.8 |
% |
|
||||
Income before income taxes |
|
|
216.6 |
|
|
|
7.4 |
|
|
|
224.0 |
|
|
|
|
|
|
||||
Income tax provision |
|
|
(48.0 |
) |
|
|
(1.4 |
) |
|
|
(49.4 |
) |
|
|
|
|
|
||||
Effective tax rate |
|
|
22.1 |
% |
|
|
|
|
22.1 |
% |
|
|
|
|
|
||||||
Net income |
|
$ |
168.6 |
|
|
$ |
6.0 |
|
|
$ |
174.6 |
|
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
2.61 |
|
|
|
|
$ |
2.70 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
608.2 |
|
|
$ |
— |
|
|
$ |
608.2 |
|
|
$ |
0.5 |
|
|
$ |
608.7 |
|
|
|
|
|
479.1 |
|
|
|
— |
|
|
|
479.1 |
|
|
|
3.7 |
|
|
|
482.8 |
|
|
|
|
|
390.9 |
|
|
|
— |
|
|
|
390.9 |
|
|
|
21.9 |
|
|
|
412.8 |
|
|
Other non-reportable segments |
|
|
34.0 |
|
|
|
— |
|
|
|
34.0 |
|
|
|
— |
|
|
|
34.0 |
|
|
Total revenue |
|
$ |
1,512.2 |
|
|
$ |
— |
|
|
$ |
1,512.2 |
|
|
$ |
26.1 |
|
|
$ |
1,538.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
119.8 |
|
|
$ |
— |
|
|
$ |
119.8 |
|
|
|
|
|
|
||||
Operating margin |
|
|
19.7 |
% |
|
|
|
|
19.7 |
% |
|
|
|
|
|
||||||
|
|
|
120.6 |
|
|
|
— |
|
|
|
120.6 |
|
|
|
|
|
|
||||
Operating margin |
|
|
25.2 |
% |
|
|
|
|
25.2 |
% |
|
|
|
|
|
||||||
|
|
|
107.2 |
|
|
|
— |
|
|
|
107.2 |
|
|
|
|
|
|
||||
Operating margin |
|
|
27.4 |
% |
|
|
|
|
27.4 |
% |
|
|
|
|
|
||||||
Other non-reportable segments |
|
|
29.6 |
|
|
|
— |
|
|
|
29.6 |
|
|
|
|
|
|
||||
Operating margin |
|
|
87.1 |
% |
|
|
|
|
87.1 |
% |
|
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(168.7 |
) |
|
|
7.4 |
|
|
|
(161.3 |
) |
|
|
|
|
|
||||
Total operating income |
|
$ |
208.5 |
|
|
$ |
7.4 |
|
|
$ |
215.9 |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON- |
|
||||||||||||
(Unaudited) |
|
||||||||||||
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
||||||||||
|
|
|
|
||||||||||
|
|
As |
|
Total |
|
As |
|
||||||
|
|
(millions, except per share data) |
|
||||||||||
Net revenues |
|
$ |
1,496.5 |
|
|
$ |
— |
|
|
$ |
1,496.5 |
|
|
Gross profit |
|
|
1,032.0 |
|
|
|
(1.8 |
) |
|
|
1,030.2 |
|
|
Gross profit margin |
|
|
69.0 |
% |
|
|
|
|
68.8 |
% |
|
||
Total other operating expenses, net |
|
|
(865.6 |
) |
|
|
35.5 |
|
|
|
(830.1 |
) |
(e) |
Operating expense margin |
|
|
57.8 |
% |
|
|
|
|
55.5 |
% |
|
||
Operating income |
|
|
166.4 |
|
|
|
33.7 |
|
|
|
200.1 |
|
|
Operating margin |
|
|
11.1 |
% |
|
|
|
|
13.4 |
% |
|
||
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 |
|
|
|
|
|
|
|
||||||
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 |
|
|
FOOTNOTES TO RECONCILIATION OF NON-
(a) |
Adjustments for non-routine inventory-related charges (benefits) are recorded within cost of goods sold in the consolidated statements of operations. Adjustments for non-routine bad debt expense (benefit) are recorded within selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Adjustments for 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 |
|
(d) |
Total adjusted other operating expenses, net excluding marketing and advertising ("Marketing") expenses for the three months ended |
|
|
Three Months Ended |
||||||||
|
|
|
||||||||
|
|
As Adjusted |
|
Marketing |
|
As Adjusted |
||||
|
|
(millions) |
||||||||
Total other operating expenses, net |
|
$ |
(863.7 |
) |
|
102.5 |
|
$ |
(761.2 |
) |
Operating expense margin |
|
|
56.1 |
% |
|
|
|
|
49.5 |
% |
(e) |
Total adjusted other operating expenses, net excluding Marketing expenses for the three months ended |
|
|
Three Months Ended |
||||||||
|
|
|
||||||||
|
|
As |
|
Marketing |
|
As |
||||
|
|
(millions) |
||||||||
Total other operating expenses, net |
|
$ |
(830.1 |
) |
|
85.0 |
|
$ |
(745.1 |
) |
Operating expense margin |
|
|
55.5 |
% |
|
|
|
|
49.8 |
% |
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 2025 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/20240806187706/en/
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