Ralph Lauren Reports Fourth Quarter and Full Year Fiscal 2023 Results Ahead of Expectations; Provides Initial Outlook for Fiscal 2024
- Fourth Quarter and Full Year Revenue Exceeded Expectations, Led by
Asia andEurope , with Fourth Quarter Revenue Up 1% on a Reported Basis and 9% in Constant Currency on a 13-Week Comparable Basis and Full Year Fiscal 2023 Revenue Up 4% and 10%, Respectively
- Global Direct-to-Consumer Comparable Store Sales Grew 6% in the Fourth Quarter, Driven by Continued Brand Elevation with Double-Digit Average Unit Retail ("AUR") Growth and Full-Price Retail Performance
- Delivered Better Than Expected Fourth Quarter Operating Margin Expansion and Operating Profit Growth Despite Significant Cost and Foreign Currency Headwinds
- Outlook for Fiscal 2024 Net Revenue Growth of Low-Single Digits on Both a Reported and Constant Currency Basis with Operating Margin Expansion
- Returned a Total of
$653 Million to Shareholders Through Our Dividends and Repurchase of Class A Common Stock in Fiscal 2023
"As I reflect on the past year, I am inspired by how our teams around the world brought the magic of our timeless vision to life. From our California Dreaming show to sponsoring some of the most iconic moments in sports — it's their passion and optimism that inspire people to step into their dreams," said
"We made strong progress in the first year of our
Key Achievements in Fourth Quarter and Full Year Fiscal 2023
We delivered the following highlights across our strategic priorities in the fourth quarter and full year Fiscal 2023:
- Elevate and Energize Our Lifestyle Brand
- Delivered strong growth in customer lifetime value and full-price new consumer acquisition, supported by high-single digit growth in social media followers and digital search trends significantly outpacing peers. Consumer metrics gained momentum led by growth in brand consideration, value perception and net promoter scores for both the fourth quarter and full year
- Fueled consumer recruitment and engagement through key brand moments, with fourth quarter investments focused on: our 3rd annual sponsorship of the
Australian Open ; first-ever brand collaboration and NFTs with Web3 community Poolsuite as part of ourMiami ecosystem launch; successfulLunar New Year Polo Bear campaign; and iconic celebrity dressing moments includingMalala Yousafzai at the Oscars
- Drive the Core and Expand for More
- Drove robust revenue growth in our Core business, up low double-digits to last year, as well as our high-potential categories — including Women's, Outerwear and Home — up low-teens to last year, both in constant currency
- Product highlights this quarter included: our Polo Women's intimates launch; special edition Creed III movie collaboration; and
Lunar New Year 'Year of the Rabbit' capsule - Increased AUR by 12% across our direct-to-consumer network in both the fourth quarter and full year, on top of double-digit increases last year, driven by continued elevation of our product offering and favorable geographic and channel mix shifts
- Win in Key Cities with Our Consumer Ecosystem
- Delivered targeted key city ecosystem expansion across every region including emblematic store openings in
Sydney ,Miami , andShenzhen in the fourth quarter - By geography, fourth quarter sales performance was led by
Asia , up 13% on a reported basis and 29% in constant currency on a 13-week comparable basis, withChina up more than 30% in reported dollars and over 40% on a constant currency 13-week comparable basis.Europe andNorth America were negatively impacted by a shift in the timing of post-holiday sales into the third quarter, as previously reported, with sales declining 1% and 3%, respectively, on a reported basis but increasing 7% and 2%, respectively in constant currency on a 13-week comparable basis Ralph Lauren digital revenues grew mid-single digits in the fourth quarter in constant currency, in-line with our expectations and on top of 20% growth last year. Digital operating margin continued to meaningfully benefit the total Company margin rate
- Delivered targeted key city ecosystem expansion across every region including emblematic store openings in
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.
Fourth Quarter Fiscal 2023 Income Statement Review
Net Revenue. In the fourth quarter of Fiscal 2023, revenue increased 1% to
Revenue performance for the Company's reportable segments in the fourth quarter compared to the prior year period was as follows:
- North America Revenue.
North America revenue in the fourth quarter decreased 3% to$656 million . On a 13-week comparable basis, revenue increased 2% in constant currency. Results included approximately 270 basis points of negative impact from a previously reported shift in the timing of post-holiday sales into the third quarter this year compared to the fourth quarter last year. In retail, comparable store sales inNorth America were down 4%, with a 3% decrease in digital commerce and a 4% decline in brick and mortar stores driven primarily by the timing shift.North America wholesale revenue was up 11% to last year, benefiting from more normalized timing of spring shipments compared to the prior year's supply chain disruptions.
- Europe Revenue.
Europe revenue in the fourth quarter decreased 1% to$461 million on a reported basis. On a 13-week comparable basis, revenue increased 7% in constant currency. Similar toNorth America , results included approximately 120 basis points of negative impact from a previously reported shift in the timing of post-holiday sales into the third quarter this year compared to the fourth quarter last year. In retail, comparable store sales inEurope were up 8%, with a 9% increase in brick and mortar stores and a 6% increase in digital commerce.Europe wholesale revenue decreased 3% on a reported basis but increased 3% in constant currency.
- Asia Revenue.
Asia revenue in the fourth quarter increased 13% to$390 million on a reported basis. On a 13-week comparable basis, revenue increased 29% in constant currency, supported by strong performance across all markets. Comparable store sales inAsia increased 20%, with a 20% increase in our brick and mortar stores and a 19% increase in digital commerce.
Gross Profit. Gross profit for the fourth quarter of Fiscal 2023 was
Operating Expenses. Operating expenses in the fourth quarter of Fiscal 2023 were
Operating Income. Operating income for the fourth quarter of Fiscal 2023 was
- North America Operating Income.
North America operating income in the fourth quarter was$68 million on a reported basis and$80 million an adjusted basis.Adjusted North America operating margin was 12.2%, compared to adjusted operating margin of 13.1% for the 13-week comparable period of the fourth quarter of Fiscal 2022 driven by increased compensation, shipping and other selling expenses.
- Europe Operating Income.
Europe operating income in the fourth quarter was$89 million on both a reported and adjusted basis. AdjustedEurope operating margin was 20.6% in constant currency, compared to 19.0% for the comparable 13-week period last year.
- Asia Operating Income.
Asia operating income in the fourth quarter was$55 million on both a reported and adjusted basis. AdjustedAsia operating margin was 16.3% in constant currency, compared to 8.2% for the comparable 13-week period last year.
Net Income and EPS. On a reported basis, net income in the fourth quarter of Fiscal 2023 was
In the fourth quarter of Fiscal 2023, the Company had an effective tax rate of approximately 34% on a reported basis and 27% on an adjusted basis. This compared to a reported and adjusted effective tax rate of approximately 17% and 23%, respectively, in the prior year period. The increase in our adjusted effective tax rate was primarily driven by the absence of certain discrete items that benefited the fourth quarter of the prior year.
Full Year Fiscal 2023 Income Statement Review
Net Revenues. For Fiscal 2023, revenue increased 4% to
- North America Revenue. For Fiscal 2023,
North America revenue increased 2% to$3.0 billion . On a 52-week comparable basis,North America revenue increased 3% to$3.0 billion in constant currency.
- Europe Revenue. For Fiscal 2023,
Europe revenue increased 3% to$1.8 billion on a reported basis. On a 52-week comparable basis,Europe revenue increased 15% to$2.0 billion in constant currency.
- Asia Revenue. For Fiscal 2023,
Asia revenue increased 11% to$1.4 billion on a reported basis. On a 52-week comparable basis,Asia revenue increased 25% to$1.6 billion in constant currency.
Gross Profit. Gross profit for Fiscal 2023 was
Operating Expenses. For Fiscal 2023, operating expenses were
Operating Income. Operating income for Fiscal 2023 was
- North America Operating Income.
North America operating income in Fiscal 2023 was$543 million and operating margin was 18.0%, including restructuring-related and other net charges.Adjusted North America operating margin was 18.7%, compared to adjusted operating margin of 22.4% for the 52-week comparable period in Fiscal 2022 driven by increased product costs, compensation and selling expenses.
- Europe Operating Income.
Europe operating income in Fiscal 2023 was$406 million and operating margin was 22.1% on a reported basis, including restructuring-related and other net charges. AdjustedEurope operating margin was 25.2% in constant currency, compared to 24.8% for the comparable 52-week period last year.
- Asia Operating Income.
Asia operating income in Fiscal 2023 was$290 million and operating margin was 20.3% on a reported basis, including restructuring-related and other net charges. AdjustedAsia operating margin was 22.0% in constant currency, compared to 17.1% for the comparable 52-week period last year.
Net Income and EPS. In Fiscal 2023, net income was
For Fiscal 2023, the Company had an effective tax rate of approximately 24% on both a reported and adjusted basis. This compared to a reported and adjusted effective tax rate of approximately 20% and 21%, respectively, in the prior year. The increase in our adjusted effective tax rate was primarily driven by the absence of a one-time foreign derived intangible income deduction and other discrete items that benefited the prior year period.
Balance Sheet and Cash Flow Review
The Company ended Fiscal 2023 with
The Company repurchased approximately
The Company had
Full Year Fiscal 2024 and First 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, the war in
For Fiscal 2024, the Company expects revenues to increase approximately low-single digits to last year on a constant currency basis. Based on current exchange rates, foreign currency is expected to benefit revenue growth by approximately 20 basis points in Fiscal 2024.
The Company expects 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 benefit operating margin by approximately 10 basis points in Fiscal 2024. Gross margin expansion is expected to increase about 50 to 100 basis points in constant currency, with stronger AUR and reduced freight costs more than offsetting continued product cost inflation through the majority of the fiscal year. Foreign currency is expected to negatively impact gross margins by approximately 20 basis points in Fiscal 2024.
For the first quarter, the Company expects revenues to be flat to up slightly to last year on a constant currency basis. On a reported basis, including approximately 150 basis points of negative foreign currency impact, revenues are expected to be down slightly to prior year. This outlook includes approximately 220 basis points of negative impact from the normalized timing of spring
Operating margin for the first quarter is expected to expand approximately 30 to 50 basis points in constant currency, driven by stronger gross margins. Gross margin expansion is expected to be driven by lower freight costs and continued AUR growth partially offset by increased product costs. Foreign currency is expected to negatively impact operating and gross margins by approximately 50 basis points in the first quarter.
The full year Fiscal 2024 tax rate is expected to be in the range of 24% to 25%, assuming a continuation of current tax laws. First quarter of Fiscal 2024 tax rate is expected to be about 23% to 24%.
The Company is planning 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 approximately 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. 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. These risks, uncertainties, and other factors 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: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,529.3 |
|
|
$ |
1,863.8 |
|
Short-term investments |
|
|
36.4 |
|
|
|
734.6 |
|
Accounts receivable, net of allowances |
|
|
447.7 |
|
|
|
405.4 |
|
Inventories |
|
|
1,071.3 |
|
|
|
977.3 |
|
Income tax receivable |
|
|
50.7 |
|
|
|
63.7 |
|
Prepaid expenses and other current assets |
|
|
188.7 |
|
|
|
172.5 |
|
Total current assets |
|
|
3,324.1 |
|
|
|
4,217.3 |
|
Property and equipment, net |
|
|
955.5 |
|
|
|
969.5 |
|
Operating lease right-of-use assets |
|
|
1,134.0 |
|
|
|
1,111.3 |
|
Deferred tax assets |
|
|
255.1 |
|
|
|
303.8 |
|
|
|
|
898.9 |
|
|
|
908.7 |
|
Intangible assets, net |
|
|
88.9 |
|
|
|
102.9 |
|
Other non-current assets |
|
|
133.0 |
|
|
|
111.2 |
|
Total assets |
|
$ |
6,789.5 |
|
|
$ |
7,724.7 |
|
|
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LIABILITIES AND EQUITY |
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Current liabilities: |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
— |
|
|
$ |
499.8 |
|
Accounts payable |
|
|
371.6 |
|
|
|
448.7 |
|
Current income tax payable |
|
|
59.7 |
|
|
|
53.8 |
|
Current operating lease liabilities |
|
|
266.7 |
|
|
|
262.0 |
|
Accrued expenses and other current liabilities |
|
|
795.5 |
|
|
|
991.4 |
|
Total current liabilities |
|
|
1,493.5 |
|
|
|
2,255.7 |
|
Long-term debt |
|
|
1,138.5 |
|
|
|
1,136.5 |
|
Long-term finance lease liabilities |
|
|
315.3 |
|
|
|
341.6 |
|
Long-term operating lease liabilities |
|
|
1,141.1 |
|
|
|
1,132.2 |
|
Non-current income tax payable |
|
|
75.9 |
|
|
|
98.9 |
|
Non-current liability for unrecognized tax benefits |
|
|
93.8 |
|
|
|
91.9 |
|
Other non-current liabilities |
|
|
100.9 |
|
|
|
131.9 |
|
Total liabilities |
|
|
4,359.0 |
|
|
|
5,188.7 |
|
Equity: |
|
|
|
|
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Common stock |
|
|
1.3 |
|
|
|
1.3 |
|
Additional paid-in-capital |
|
|
2,824.3 |
|
|
|
2,748.8 |
|
Retained earnings |
|
|
6,598.2 |
|
|
|
6,274.9 |
|
|
|
|
(6,797.3 |
) |
|
|
(6,308.7 |
) |
Accumulated other comprehensive loss |
|
|
(196.0 |
) |
|
|
(180.3 |
) |
Total equity |
|
|
2,430.5 |
|
|
|
2,536.0 |
|
Total liabilities and equity |
|
$ |
6,789.5 |
|
|
$ |
7,724.7 |
|
|
|
|
|
|
||||
|
|
$ |
427.2 |
|
|
$ |
962.1 |
|
Cash & Short-term Investments |
|
|
1,565.7 |
|
|
|
2,598.4 |
|
______________________ | ||
(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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Twelve Months Ended |
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(millions, except per share data) |
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Net revenues |
|
$ |
1,540.8 |
|
|
$ |
1,522.7 |
|
|
$ |
6,443.6 |
|
|
$ |
6,218.5 |
|
Cost of goods sold |
|
|
(590.2 |
) |
|
|
(556.6 |
) |
|
|
(2,277.8 |
) |
|
|
(2,071.0 |
) |
Gross profit |
|
|
950.6 |
|
|
|
966.1 |
|
|
|
4,165.8 |
|
|
|
4,147.5 |
|
Selling, general, and administrative expenses |
|
|
(878.2 |
) |
|
|
(913.7 |
) |
|
|
(3,408.9 |
) |
|
|
(3,305.6 |
) |
Impairment of assets |
|
|
(9.5 |
) |
|
|
(2.0 |
) |
|
|
(9.7 |
) |
|
|
(21.3 |
) |
Restructuring and other charges, net |
|
|
(22.7 |
) |
|
|
(13.6 |
) |
|
|
(43.0 |
) |
|
|
(22.2 |
) |
Total other operating expenses, net |
|
|
(910.4 |
) |
|
|
(929.3 |
) |
|
|
(3,461.6 |
) |
|
|
(3,349.1 |
) |
Operating income |
|
|
40.2 |
|
|
|
36.8 |
|
|
|
704.2 |
|
|
|
798.4 |
|
Interest expense |
|
|
(7.1 |
) |
|
|
(13.7 |
) |
|
|
(40.4 |
) |
|
|
(54.0 |
) |
Interest income |
|
|
13.4 |
|
|
|
1.1 |
|
|
|
32.2 |
|
|
|
5.5 |
|
Other income (expense), net |
|
|
2.7 |
|
|
|
5.1 |
|
|
|
(4.1 |
) |
|
|
4.7 |
|
Income before income taxes |
|
|
49.2 |
|
|
|
29.3 |
|
|
|
691.9 |
|
|
|
754.6 |
|
Income tax provision |
|
|
(16.9 |
) |
|
|
(4.9 |
) |
|
|
(169.2 |
) |
|
|
(154.5 |
) |
Net income |
|
$ |
32.3 |
|
|
$ |
24.4 |
|
|
$ |
522.7 |
|
|
$ |
600.1 |
|
Net income per common share: |
|
|
|
|
|
|
|
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||||||||
Basic |
|
$ |
0.49 |
|
|
$ |
0.34 |
|
|
$ |
7.72 |
|
|
$ |
8.22 |
|
Diluted |
|
$ |
0.48 |
|
|
$ |
0.34 |
|
|
$ |
7.58 |
|
|
$ |
8.07 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
66.4 |
|
|
|
71.2 |
|
|
|
67.7 |
|
|
|
73.0 |
|
Diluted |
|
|
67.8 |
|
|
|
72.5 |
|
|
|
69.0 |
|
|
|
74.3 |
|
Dividends declared per share |
|
$ |
0.75 |
|
|
$ |
0.6875 |
|
|
$ |
3.00 |
|
|
$ |
2.75 |
|
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Prepared in accordance with |
||||||||
(Unaudited) |
||||||||
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|
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|
|
Twelve Months Ended |
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|
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|
||||
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(millions) |
||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
522.7 |
|
|
$ |
600.1 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization expense |
|
|
220.5 |
|
|
|
229.7 |
|
Deferred income tax expense (benefit) |
|
|
3.9 |
|
|
|
(46.1 |
) |
Stock-based compensation expense |
|
|
75.5 |
|
|
|
81.7 |
|
Impairment of assets |
|
|
9.7 |
|
|
|
21.3 |
|
Bad debt expense (reversals) |
|
|
2.3 |
|
|
|
(2.2 |
) |
Other non-cash charges |
|
|
1.0 |
|
|
|
1.0 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(52.6 |
) |
|
|
32.4 |
|
Inventories |
|
|
(106.2 |
) |
|
|
(269.3 |
) |
Prepaid expenses and other current assets |
|
|
(19.9 |
) |
|
|
(28.3 |
) |
Accounts payable and accrued liabilities |
|
|
(225.0 |
) |
|
|
194.6 |
|
Income tax receivables and payables |
|
|
5.7 |
|
|
|
(62.3 |
) |
Operating lease right-of-use assets and liabilities, net |
|
|
(17.5 |
) |
|
|
(61.6 |
) |
Other balance sheet changes |
|
|
(9.1 |
) |
|
|
24.9 |
|
Net cash provided by operating activities |
|
|
411.0 |
|
|
|
715.9 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(217.5 |
) |
|
|
(166.9 |
) |
Purchases of investments |
|
|
(598.6 |
) |
|
|
(1,510.6 |
) |
Proceeds from sales and maturities of investments |
|
|
1,293.4 |
|
|
|
964.6 |
|
Other investing activities |
|
|
(5.8 |
) |
|
|
(5.0 |
) |
Net cash provided by (used in) investing activities |
|
|
471.5 |
|
|
|
(717.9 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Repayments of long-term debt |
|
|
(500.0 |
) |
|
|
— |
|
Payments of finance lease obligations |
|
|
(21.9 |
) |
|
|
(23.1 |
) |
Payments of dividends |
|
|
(198.3 |
) |
|
|
(150.0 |
) |
Repurchases of common stock, including shares surrendered for tax withholdings |
|
|
(488.6 |
) |
|
|
(492.6 |
) |
Net cash used in financing activities |
|
|
(1,208.8 |
) |
|
|
(665.7 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(8.8 |
) |
|
|
(48.3 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(335.1 |
) |
|
|
(716.0 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,872.0 |
|
|
|
2,588.0 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
1,536.9 |
|
|
$ |
1,872.0 |
|
|
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SEGMENT INFORMATION |
||||||||||||||||
(Unaudited) |
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|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(millions) |
||||||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
655.6 |
|
|
$ |
674.3 |
|
|
$ |
3,020.5 |
|
|
$ |
2,968.2 |
|
|
|
|
460.8 |
|
|
|
467.4 |
|
|
|
1,839.2 |
|
|
|
1,780.7 |
|
|
|
|
390.0 |
|
|
|
346.1 |
|
|
|
1,426.7 |
|
|
|
1,286.8 |
|
Other non-reportable segments |
|
|
34.4 |
|
|
|
34.9 |
|
|
|
157.2 |
|
|
|
182.8 |
|
Total net revenues |
|
$ |
1,540.8 |
|
|
$ |
1,522.7 |
|
|
$ |
6,443.6 |
|
|
$ |
6,218.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
68.4 |
|
|
$ |
90.2 |
|
|
$ |
543.2 |
|
|
$ |
676.7 |
|
|
|
|
89.1 |
|
|
|
90.6 |
|
|
|
406.5 |
|
|
|
444.0 |
|
|
|
|
55.4 |
|
|
|
39.4 |
|
|
|
289.6 |
|
|
|
228.8 |
|
Other non-reportable segments |
|
|
32.3 |
|
|
|
32.2 |
|
|
|
146.4 |
|
|
|
138.4 |
|
|
|
|
245.2 |
|
|
|
252.4 |
|
|
|
1,385.7 |
|
|
|
1,487.9 |
|
Unallocated corporate expenses |
|
|
(182.3 |
) |
|
|
(202.0 |
) |
|
|
(638.5 |
) |
|
|
(667.3 |
) |
Unallocated restructuring and other charges, net |
|
|
(22.7 |
) |
|
|
(13.6 |
) |
|
|
(43.0 |
) |
|
|
(22.2 |
) |
Total operating income |
|
$ |
40.2 |
|
|
$ |
36.8 |
|
|
$ |
704.2 |
|
|
$ |
798.4 |
|
|
||||||||||||||
CONSTANT CURRENCY FINANCIAL MEASURES |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Comparable Store Sales Data |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
||||||
|
|
% Change |
|
% Change |
|
|
|
|
||||||
|
|
Constant Currency |
|
Constant Currency |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
(3 |
%) |
|
|
3 |
% |
|
|
|
|
||
Brick and mortar |
|
|
(4 |
%) |
|
|
1 |
% |
|
|
|
|
||
|
|
|
(4 |
%) |
|
|
1 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
6 |
% |
|
|
10 |
% |
|
|
|
|
||
Brick and mortar |
|
|
9 |
% |
|
|
14 |
% |
|
|
|
|
||
Total |
|
|
8 |
% |
|
|
13 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
19 |
% |
|
|
24 |
% |
|
|
|
|
||
Brick and mortar |
|
|
20 |
% |
|
|
17 |
% |
|
|
|
|
||
Total |
|
|
20 |
% |
|
|
17 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
6 |
% |
|
|
8 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Operating Segment Net Revenues Data |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
655.6 |
|
|
$ |
674.3 |
|
|
(2.8 |
%) |
|
(2.5 |
%) |
|
|
|
460.8 |
|
|
|
467.4 |
|
|
(1.4 |
%) |
|
4.0 |
% |
|
|
|
390.0 |
|
|
|
346.1 |
|
|
12.7 |
% |
|
21.5 |
% |
Other non-reportable segments |
|
|
34.4 |
|
|
|
34.9 |
|
|
(1.6 |
%) |
|
(1.5 |
%) |
Net revenues |
|
$ |
1,540.8 |
|
|
$ |
1,522.7 |
|
|
1.2 |
% |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
|
Twelve Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
3,020.5 |
|
|
$ |
2,968.2 |
|
|
1.8 |
% |
|
2.0 |
% |
|
|
|
1,839.2 |
|
|
|
1,780.7 |
|
|
3.3 |
% |
|
14.3 |
% |
|
|
|
1,426.7 |
|
|
|
1,286.8 |
|
|
10.9 |
% |
|
23.1 |
% |
Other non-reportable segments |
|
|
157.2 |
|
|
|
182.8 |
|
|
(14.0 |
%) |
|
(13.9 |
%) |
Net revenues |
|
$ |
6,443.6 |
|
|
$ |
6,218.5 |
|
|
3.6 |
% |
|
9.4 |
% |
|
||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
357.3 |
|
$ |
182.8 |
|
$ |
358.5 |
|
$ |
— |
|
$ |
898.6 |
|
$ |
406.1 |
|
$ |
181.6 |
|
$ |
322.0 |
|
$ |
— |
|
$ |
909.7 |
Wholesale |
|
|
298.3 |
|
|
278.0 |
|
|
31.5 |
|
|
— |
|
|
607.8 |
|
|
268.2 |
|
|
285.8 |
|
|
24.1 |
|
|
0.4 |
|
|
578.5 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
34.4 |
|
|
34.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
34.5 |
|
|
34.5 |
Net revenues |
|
$ |
655.6 |
|
$ |
460.8 |
|
$ |
390.0 |
|
$ |
34.4 |
|
$ |
1,540.8 |
|
$ |
674.3 |
|
$ |
467.4 |
|
$ |
346.1 |
|
$ |
34.9 |
|
$ |
1,522.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North America |
|
|
|
|
|
Other |
|
Total |
|
North America |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
1,872.6 |
|
$ |
858.4 |
|
$ |
1,322.1 |
|
$ |
— |
|
$ |
4,053.1 |
|
$ |
1,878.6 |
|
$ |
828.3 |
|
$ |
1,207.4 |
|
$ |
27.2 |
|
$ |
3,941.5 |
Wholesale |
|
|
1,147.9 |
|
|
980.8 |
|
|
104.6 |
|
|
— |
|
|
2,233.3 |
|
|
1,089.6 |
|
|
952.4 |
|
|
79.4 |
|
|
5.9 |
|
|
2,127.3 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
157.2 |
|
|
157.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
149.7 |
|
|
149.7 |
Net revenues |
|
$ |
3,020.5 |
|
$ |
1,839.2 |
|
$ |
1,426.7 |
|
$ |
157.2 |
|
$ |
6,443.6 |
|
$ |
2,968.2 |
|
$ |
1,780.7 |
|
$ |
1,286.8 |
|
$ |
182.8 |
|
$ |
6,218.5 |
|
||||
GLOBAL RETAIL STORE NETWORK |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48 |
|
46 |
Polo Outlet Stores |
|
189 |
|
193 |
Total Directly Operated Stores |
|
237 |
|
239 |
Concessions |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
43 |
|
36 |
Polo Outlet Stores |
|
61 |
|
59 |
Total Directly Operated Stores |
|
104 |
|
95 |
Concessions |
|
29 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
118 |
|
93 |
Polo Outlet Stores |
|
94 |
|
77 |
Total Directly Operated Stores |
|
212 |
|
170 |
Concessions |
|
692 |
|
654 |
|
|
|
|
|
Global Directly Operated Stores and Concessions |
|
|
|
|
|
|
209 |
|
175 |
Polo Outlet Stores |
|
344 |
|
329 |
Total Directly Operated Stores |
|
553 |
|
504 |
Concessions |
|
722 |
|
684 |
|
|
|
|
|
Global Licensed Stores |
|
|
|
|
Total Licensed Stores |
|
182 |
|
148 |
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
Foreign |
|
As |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
1,540.8 |
|
|
$ |
— |
|
|
$ |
1,540.8 |
|
|
$ |
57.2 |
|
|
$ |
1,598.0 |
|
Gross profit |
|
|
950.6 |
|
|
|
2.2 |
|
|
|
952.8 |
|
|
|
53.5 |
|
|
|
1,006.3 |
|
Gross profit margin |
|
|
61.7 |
% |
|
|
|
|
61.8 |
% |
|
|
|
|
63.0 |
% |
||||
Total other operating expenses, net |
|
|
(910.4 |
) |
|
|
32.5 |
|
|
|
(877.9 |
) |
|
|
(30.5 |
) |
|
|
(908.4 |
) |
Operating expense margin |
|
|
59.1 |
% |
|
|
|
|
57.0 |
% |
|
|
|
|
56.9 |
% |
||||
Operating income |
|
|
40.2 |
|
|
|
34.7 |
|
|
|
74.9 |
|
|
|
23.0 |
|
|
|
97.9 |
|
Operating margin |
|
|
2.6 |
% |
|
|
|
|
4.9 |
% |
|
|
|
|
6.1 |
% |
||||
Income before income taxes |
|
|
49.2 |
|
|
|
34.7 |
|
|
|
83.9 |
|
|
|
|
|
||||
Income tax provision |
|
|
(16.9 |
) |
|
|
(6.1 |
) |
|
|
(23.0 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
34.3 |
% |
|
|
|
|
27.3 |
% |
|
|
|
|
||||||
Net income |
|
$ |
32.3 |
|
|
$ |
28.6 |
|
|
$ |
60.9 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
0.48 |
|
|
$ |
0.42 |
|
|
$ |
0.90 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
655.6 |
|
|
$ |
— |
|
|
$ |
655.6 |
|
|
$ |
1.7 |
|
|
$ |
657.3 |
|
|
|
|
460.8 |
|
|
|
— |
|
|
|
460.8 |
|
|
|
25.2 |
|
|
|
486.0 |
|
|
|
|
390.0 |
|
|
|
— |
|
|
|
390.0 |
|
|
|
30.3 |
|
|
|
420.3 |
|
Other non-reportable segments |
|
|
34.4 |
|
|
|
— |
|
|
|
34.4 |
|
|
|
— |
|
|
|
34.4 |
|
Total revenue |
|
$ |
1,540.8 |
|
|
$ |
— |
|
|
$ |
1,540.8 |
|
|
$ |
57.2 |
|
|
$ |
1,598.0 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
68.4 |
|
|
$ |
11.7 |
|
|
$ |
80.1 |
|
|
$ |
0.3 |
|
|
$ |
80.4 |
|
Operating margin |
|
|
10.4 |
% |
|
|
|
|
12.2 |
% |
|
|
|
|
12.2 |
% |
||||
|
|
|
89.1 |
|
|
|
0.3 |
|
|
|
89.4 |
|
|
|
10.8 |
|
|
|
100.2 |
|
Operating margin |
|
|
19.3 |
% |
|
|
|
|
19.4 |
% |
|
|
|
|
20.6 |
% |
||||
|
|
|
55.4 |
|
|
|
— |
|
|
|
55.4 |
|
|
|
13.0 |
|
|
|
68.4 |
|
Operating margin |
|
|
14.2 |
% |
|
|
|
|
14.2 |
% |
|
|
|
|
16.3 |
% |
||||
Other non-reportable segments |
|
|
32.3 |
|
|
|
— |
|
|
|
32.3 |
|
|
|
|
|
||||
Operating margin |
|
|
93.9 |
% |
|
|
|
|
93.9 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(205.0 |
) |
|
|
22.7 |
|
|
|
(182.3 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
40.2 |
|
|
$ |
34.7 |
|
|
$ |
74.9 |
|
|
|
|
|
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
Foreign |
|
As |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
6,443.6 |
|
|
$ |
— |
|
|
$ |
6,443.6 |
|
|
$ |
360.0 |
|
|
$ |
6,803.6 |
|
Gross profit |
|
|
4,165.8 |
|
|
|
15.4 |
|
|
|
4,181.2 |
|
|
|
330.3 |
|
|
|
4,511.5 |
|
Gross profit margin |
|
|
64.6 |
% |
|
|
|
|
64.9 |
% |
|
|
|
|
66.3 |
% |
||||
Total other operating expenses, net |
|
|
(3,461.6 |
) |
|
|
50.6 |
|
|
|
(3,411.0 |
) |
|
|
(165.8 |
) |
|
|
(3,576.8 |
) |
Operating expense margin |
|
|
53.7 |
% |
|
|
|
|
52.9 |
% |
|
|
|
|
52.6 |
% |
||||
Operating income |
|
|
704.2 |
|
|
|
66.0 |
|
|
|
770.2 |
|
|
|
164.5 |
|
|
|
934.7 |
|
Operating margin |
|
|
10.9 |
% |
|
|
|
|
12.0 |
% |
|
|
|
|
13.7 |
% |
||||
Income before income taxes |
|
|
691.9 |
|
|
|
66.0 |
|
|
|
757.9 |
|
|
|
|
|
||||
Income tax provision |
|
|
(169.2 |
) |
|
|
(13.1 |
) |
|
|
(182.3 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
24.5 |
% |
|
|
|
|
24.0 |
% |
|
|
|
|
||||||
Net income |
|
$ |
522.7 |
|
|
$ |
52.9 |
|
|
$ |
575.6 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
7.58 |
|
|
$ |
0.76 |
|
|
$ |
8.34 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
3,020.5 |
|
|
$ |
— |
|
|
$ |
3,020.5 |
|
|
$ |
5.6 |
|
|
$ |
3,026.1 |
|
|
|
|
1,839.2 |
|
|
|
— |
|
|
|
1,839.2 |
|
|
|
196.3 |
|
|
|
2,035.5 |
|
|
|
|
1,426.7 |
|
|
|
— |
|
|
|
1,426.7 |
|
|
|
157.9 |
|
|
|
1,584.6 |
|
Other non-reportable segments |
|
|
157.2 |
|
|
|
— |
|
|
|
157.2 |
|
|
|
0.2 |
|
|
|
157.4 |
|
Total revenue |
|
$ |
6,443.6 |
|
|
$ |
— |
|
|
$ |
6,443.6 |
|
|
$ |
360.0 |
|
|
$ |
6,803.6 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
543.2 |
|
|
$ |
21.9 |
|
|
$ |
565.1 |
|
|
$ |
0.7 |
|
|
|
565.8 |
|
Operating margin |
|
|
18.0 |
% |
|
|
|
|
18.7 |
% |
|
|
|
|
18.7 |
% |
||||
|
|
|
406.5 |
|
|
|
0.8 |
|
|
|
407.3 |
|
|
|
106.6 |
|
|
|
513.9 |
|
Operating margin |
|
|
22.1 |
% |
|
|
|
|
22.1 |
% |
|
|
|
|
25.2 |
% |
||||
|
|
|
289.6 |
|
|
|
— |
|
|
|
289.6 |
|
|
|
58.8 |
|
|
|
348.4 |
|
Operating margin |
|
|
20.3 |
% |
|
|
|
|
20.3 |
% |
|
|
|
|
22.0 |
% |
||||
Other non-reportable segments |
|
|
146.4 |
|
|
|
— |
|
|
|
146.4 |
|
|
|
|
|
||||
Operating margin |
|
|
93.1 |
% |
|
|
|
|
93.1 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(681.5 |
) |
|
|
43.3 |
|
|
|
(638.2 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
704.2 |
|
|
$ |
66.0 |
|
|
$ |
770.2 |
|
|
|
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
14 Week |
|
As |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
1,522.7 |
|
|
$ |
— |
|
|
$ |
1,522.7 |
|
|
$ |
(62.7 |
) |
|
$ |
1,460.0 |
|
Gross profit |
|
|
966.1 |
|
|
|
(1.8 |
) |
|
|
964.3 |
|
|
|
(46.1 |
) |
|
|
918.2 |
|
Gross profit margin |
|
|
63.4 |
% |
|
|
|
|
63.3 |
% |
|
|
|
|
62.9 |
% |
||||
Total other operating expenses, net |
|
|
(929.3 |
) |
|
|
19.2 |
|
|
|
(910.1 |
) |
|
|
24.4 |
|
|
|
(885.7 |
) |
Operating expense margin |
|
|
61.0 |
% |
|
|
|
|
59.8 |
% |
|
|
|
|
60.7 |
% |
||||
Operating income |
|
|
36.8 |
|
|
|
17.4 |
|
|
|
54.2 |
|
|
|
(21.7 |
) |
|
|
32.5 |
|
Operating margin |
|
|
2.4 |
% |
|
|
|
|
3.6 |
% |
|
|
|
|
2.2 |
% |
||||
Income before income taxes |
|
|
29.3 |
|
|
|
17.4 |
|
|
|
46.7 |
|
|
|
|
|
||||
Income tax provision |
|
|
(4.9 |
) |
|
|
(6.0 |
) |
|
|
(10.9 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
16.8 |
% |
|
|
|
|
23.4 |
% |
|
|
|
|
||||||
Net income |
|
$ |
24.4 |
|
|
$ |
11.4 |
|
|
$ |
35.8 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
0.34 |
|
|
$ |
0.15 |
|
|
$ |
0.49 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
674.3 |
|
|
$ |
— |
|
|
$ |
674.3 |
|
|
$ |
(29.9 |
) |
|
$ |
644.4 |
|
|
|
|
467.4 |
|
|
|
— |
|
|
|
467.4 |
|
|
|
(12.2 |
) |
|
|
455.2 |
|
|
|
|
346.1 |
|
|
|
— |
|
|
|
346.1 |
|
|
|
(20.6 |
) |
|
|
325.5 |
|
Other non-reportable segments |
|
|
34.9 |
|
|
|
— |
|
|
|
34.9 |
|
|
|
— |
|
|
|
34.9 |
|
Total revenue |
|
$ |
1,522.7 |
|
|
$ |
— |
|
|
$ |
1,522.7 |
|
|
$ |
(62.7 |
) |
|
$ |
1,460.0 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
90.2 |
|
|
$ |
0.2 |
|
|
$ |
90.4 |
|
|
$ |
(6.2 |
) |
|
|
84.2 |
|
Operating margin |
|
|
13.4 |
% |
|
|
|
|
13.4 |
% |
|
|
|
|
13.1 |
% |
||||
|
|
|
90.6 |
|
|
|
3.6 |
|
|
|
94.2 |
|
|
|
(7.5 |
) |
|
|
86.7 |
|
Operating margin |
|
|
19.4 |
% |
|
|
|
|
20.2 |
% |
|
|
|
|
19.0 |
% |
||||
|
|
|
39.4 |
|
|
|
— |
|
|
|
39.4 |
|
|
|
(12.8 |
) |
|
|
26.6 |
|
Operating margin |
|
|
11.4 |
% |
|
|
|
|
11.4 |
% |
|
|
|
|
8.2 |
% |
||||
Other non-reportable segments |
|
|
32.2 |
|
|
|
— |
|
|
|
32.2 |
|
|
|
|
|
||||
Operating margin |
|
|
92.2 |
% |
|
|
|
|
92.2 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(215.6 |
) |
|
|
13.6 |
|
|
|
(202.0 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
36.8 |
|
|
$ |
17.4 |
|
|
$ |
54.2 |
|
|
|
|
|
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
53 Week |
|
As |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
6,218.5 |
|
|
$ |
— |
|
|
$ |
6,218.5 |
|
|
$ |
(62.7 |
) |
|
$ |
6,155.8 |
|
Gross profit |
|
|
4,147.5 |
|
|
|
(13.3 |
) |
|
|
4,134.2 |
|
|
|
(46.1 |
) |
|
|
4,088.1 |
|
Gross profit margin |
|
|
66.7 |
% |
|
|
|
|
66.5 |
% |
|
|
|
|
66.4 |
% |
||||
Total other operating expenses, net |
|
|
(3,349.1 |
) |
|
|
45.9 |
|
|
|
(3,303.2 |
) |
|
|
24.4 |
|
|
|
(3,278.8 |
) |
Operating expense margin |
|
|
53.9 |
% |
|
|
|
|
53.1 |
% |
|
|
|
|
53.3 |
% |
||||
Operating income |
|
|
798.4 |
|
|
|
32.6 |
|
|
|
831.0 |
|
|
|
(21.7 |
) |
|
|
809.3 |
|
Operating margin |
|
|
12.8 |
% |
|
|
|
|
13.4 |
% |
|
|
|
|
13.1 |
% |
||||
Income before income taxes |
|
|
754.6 |
|
|
|
32.6 |
|
|
|
787.2 |
|
|
|
|
|
||||
Income tax provision |
|
|
(154.5 |
) |
|
|
(9.4 |
) |
|
|
(163.9 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
20.5 |
% |
|
|
|
|
20.8 |
% |
|
|
|
|
||||||
Net income |
|
$ |
600.1 |
|
|
$ |
23.2 |
|
|
$ |
623.3 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
8.07 |
|
|
$ |
0.31 |
|
|
$ |
8.38 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
2,968.2 |
|
|
$ |
— |
|
|
$ |
2,968.2 |
|
|
$ |
(29.9 |
) |
|
$ |
2,938.3 |
|
|
|
|
1,780.7 |
|
|
|
— |
|
|
|
1,780.7 |
|
|
|
(12.2 |
) |
|
|
1,768.5 |
|
|
|
|
1,286.8 |
|
|
|
— |
|
|
|
1,286.8 |
|
|
|
(20.6 |
) |
|
|
1,266.2 |
|
Other non-reportable segments |
|
|
182.8 |
|
|
|
— |
|
|
|
182.8 |
|
|
|
— |
|
|
|
182.8 |
|
Total revenue |
|
$ |
6,218.5 |
|
|
$ |
— |
|
|
$ |
6,218.5 |
|
|
$ |
(62.7 |
) |
|
$ |
6,155.8 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
676.7 |
|
|
$ |
(10.9 |
) |
|
$ |
665.8 |
|
|
$ |
(6.2 |
) |
|
|
659.6 |
|
Operating margin |
|
|
22.8 |
% |
|
|
|
|
22.4 |
% |
|
|
|
|
22.4 |
% |
||||
|
|
|
444.0 |
|
|
|
2.4 |
|
|
|
446.4 |
|
|
|
(7.5 |
) |
|
|
438.9 |
|
Operating margin |
|
|
24.9 |
% |
|
|
|
|
25.1 |
% |
|
|
|
|
24.8 |
% |
||||
|
|
|
228.8 |
|
|
|
1.1 |
|
|
|
229.9 |
|
|
|
(12.8 |
) |
|
|
217.1 |
|
Operating margin |
|
|
17.8 |
% |
|
|
|
|
17.9 |
% |
|
|
|
|
17.1 |
% |
||||
Other non-reportable segments |
|
|
138.4 |
|
|
|
0.3 |
|
|
|
138.7 |
|
|
|
|
|
||||
Operating margin |
|
|
75.7 |
% |
|
|
|
|
75.9 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(689.5 |
) |
|
|
39.7 |
|
|
|
(649.8 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
798.4 |
|
|
$ |
32.6 |
|
|
$ |
831.0 |
|
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As |
|
Total |
|
As |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
1,505.7 |
|
|
$ |
— |
|
|
$ |
1,505.7 |
|
Gross profit |
|
|
901.5 |
|
|
|
4.1 |
|
|
|
905.6 |
|
Gross profit margin |
|
|
59.9 |
% |
|
|
|
|
60.1 |
% |
||
Total other operating expenses, net |
|
|
(873.6 |
) |
|
|
64.2 |
|
|
|
(809.4 |
) |
Operating expense margin |
|
|
58.0 |
% |
|
|
|
|
53.8 |
% |
||
Operating income |
|
|
27.9 |
|
|
|
68.3 |
|
|
|
96.2 |
|
Operating margin |
|
|
1.9 |
% |
|
|
|
|
6.4 |
% |
||
Income before income taxes |
|
|
35.3 |
|
|
|
68.3 |
|
|
|
103.6 |
|
Income tax provision |
|
|
(3.7 |
) |
|
|
(14.5 |
) |
|
|
(18.2 |
) |
Effective tax rate |
|
|
10.6 |
% |
|
|
|
|
17.5 |
% |
||
Net income |
|
$ |
31.6 |
|
|
$ |
53.8 |
|
|
$ |
85.4 |
|
Net income per diluted common share |
|
$ |
0.39 |
|
|
$ |
0.68 |
|
|
$ |
1.07 |
|
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
108.8 |
|
|
$ |
3.6 |
|
|
$ |
112.4 |
|
Operating margin |
|
|
15.4 |
% |
|
|
|
|
15.9 |
% |
||
|
|
|
98.6 |
|
|
|
5.0 |
|
|
|
103.6 |
|
Operating margin |
|
|
22.5 |
% |
|
|
|
|
23.6 |
% |
||
|
|
|
37.7 |
|
|
|
1.5 |
|
|
|
39.2 |
|
Operating margin |
|
|
13.8 |
% |
|
|
|
|
14.3 |
% |
||
Other non-reportable segments |
|
|
23.1 |
|
|
|
1.2 |
|
|
|
24.3 |
|
Operating margin |
|
|
26.8 |
% |
|
|
|
|
28.2 |
% |
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(240.3 |
) |
|
|
57.0 |
|
|
|
(183.3 |
) |
Total operating income |
|
$ |
27.9 |
|
|
$ |
68.3 |
|
|
$ |
96.2 |
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Twelve Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As |
|
Total |
|
As |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
6,313.0 |
|
|
$ |
— |
|
|
$ |
6,313.0 |
|
Gross profit |
|
|
3,886.0 |
|
|
|
7.2 |
|
|
|
3,893.2 |
|
Gross profit margin |
|
|
61.6 |
% |
|
|
|
|
61.7 |
% |
||
Total other operating expenses, net |
|
|
(3,324.2 |
) |
|
|
155.9 |
|
|
|
(3,168.3 |
) |
Operating expense margin |
|
|
52.7 |
% |
|
|
|
|
50.2 |
% |
||
Operating income |
|
|
561.8 |
|
|
|
163.1 |
|
|
|
724.9 |
|
Operating margin |
|
|
8.9 |
% |
|
|
|
|
11.5 |
% |
||
Income before income taxes |
|
|
582.5 |
|
|
|
163.1 |
|
|
|
745.6 |
|
Income tax provision |
|
|
(151.6 |
) |
|
|
(6.5 |
) |
|
|
(158.1 |
) |
Effective tax rate |
|
|
26.0 |
% |
|
|
|
|
21.2 |
% |
||
Net income |
|
$ |
430.9 |
|
|
$ |
156.6 |
|
|
$ |
587.5 |
|
Net income per diluted common share |
|
$ |
5.27 |
|
|
$ |
1.92 |
|
|
$ |
7.19 |
|
|
|
|
|
|
|
|
||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
682.8 |
|
|
$ |
5.0 |
|
|
$ |
687.8 |
|
Operating margin |
|
|
21.3 |
% |
|
|
|
|
21.5 |
% |
||
|
|
|
392.8 |
|
|
|
9.9 |
|
|
|
402.7 |
|
Operating margin |
|
|
23.3 |
% |
|
|
|
|
23.9 |
% |
||
|
|
|
161.0 |
|
|
|
5.2 |
|
|
|
166.2 |
|
Operating margin |
|
|
15.5 |
% |
|
|
|
|
16.0 |
% |
||
Other non-reportable segments |
|
|
118.7 |
|
|
|
7.0 |
|
|
|
125.7 |
|
Operating margin |
|
|
30.7 |
% |
|
|
|
|
32.5 |
% |
||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(793.5 |
) |
|
|
136.0 |
|
|
|
(657.5 |
) |
Total operating income |
|
$ |
561.8 |
|
|
$ |
163.1 |
|
|
$ |
724.9 |
|
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 impairment-related charges are recorded within impairment of assets in the consolidated statements of operations. Adjustments for one-time income tax events are recorded within the income tax benefit (provision) in the consolidated statements of operations. Adjustments for all other charges are recorded within restructuring and other charges, net in the consolidated statements of operations. |
|
|
||
(b) |
Adjustments for the three months ended |
|
|
||
(c) |
Adjustments for the twelve months ended |
|
|
||
(d) |
The fourth quarter of Fiscal 2022 consisted of 14 weeks and the full Fiscal 2022 consisted of 53 weeks. The fourth quarter and full fiscal year of all other periods presented herein consisted of 13 weeks and 52 weeks, respectively. |
|
|
||
(e) |
Adjustments for the three months ended |
|
|
||
(f) |
Adjustments for the twelve months ended |
|
(g) |
Adjustments for the three months ended |
|
|
||
(h) |
Adjustments for the twelve 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 first quarter guidance excludes any potential restructuring-related and other charges that may be incurred in future periods. The Company is not able to provide a full reconciliation of these non-
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