Ralph Lauren Reports Fourth Quarter and Full Year Fiscal 2024 Results Ahead of Expectations; Provides Initial Outlook for Fiscal 2025
- Fourth Quarter and Full Year Revenue Exceeded Expectations, with Fourth Quarter Revenue Up 2% on a Reported Basis and 3% in Constant Currency and Full Year Fiscal 2024 Revenue Up 3% in both Reported and
Constant Dollars - Global Direct-to-Consumer Comparable Store Sales Increased 6% in Both the Fourth Quarter and Full Year, Driven by Continued Brand Elevation with Double-Digit Growth in Average Unit Retail ("AUR") and Full-Price Retail Performance
- Delivered Fourth Quarter Gross and Operating Margin Expansion Above Our Outlook; Reported Full Year Operating Margin at the High End of Our Expectations and Initial Guide at the Start of Fiscal 2024, Resulting in 28% Reported Earnings Per Share Growth and 24% Adjusted EPS Growth
- Introduced Outlook for Fiscal 2025 Net Revenue Growth of Low-Single Digits on Both a Reported and Constant Currency Basis, with Gross and Operating Margin Expansion on Track with Long-Term
Next Great Chapter : Accelerate Targets - Returned a Total of Approximately
$600 Million to Shareholders Through Our Dividend and Repurchase of Class A Common Stock in Fiscal 2024; Board of Directors Approves 10% Dividend Increase - Company Names
Justin Picicci as Chief Financial Officer, EffectiveMay 23, 2024 , Following Multi-Year Succession Plan;Jane Nielsen to Remain in Chief Operating Officer Role Through Fiscal 2025
"Our brand has always been about inspiring people to live the life of their dreams," said
"Our teams delivered continued progress on our strategic and financial commitments in year two of our
Key Achievements in Fourth Quarter and Full Year Fiscal 2024
We delivered the following highlights across our strategic priorities in the fourth quarter and full year Fiscal 2024:
- Elevate and Energize Our Lifestyle Brand
- Drove continued momentum in new customer recruitment with more than 5 million new customers in our direct-to-consumer channels following record-level holiday customer acquisition, supported by low double-digit growth in social media followers and increases in global brand consideration, purchase intent and net promoter score to last year
- Fueled consumer recruitment and engagement through key brand moments, with fourth quarter investments focused on: our globally-amplified sponsorship of the
Australian Open ; our second Artist in Residence capsule in collaboration with Navajo artist Naiomi Glasses;Lunar New Year activations across WeChat, Douyin, and Weibo; and iconic celebrity dressing moments includingBeyoncé on her new album press tour andReba McEntire at theSuper Bowl
- Drive the Core and Expand for More
- Delivered solid revenue growth in our Core business, up low single-digits to last year during the post-holiday transition period and high-single digits for the full year in constant currency. We also drove continued momentum in our high-potential categories — including Women's, Outerwear and Home — up mid-single digits to last year in the fourth quarter and high-single digits for the full year in constant currency
- Product highlights this quarter included: our Polo 67 fragrance launch featuring
New York Yankees captainAaron Judge ; our second Artist in Residence capsule, 'Color in Motion'; andLunar New Year 'Year of the Dragon' collection - Increased AUR by 13% across our direct-to-consumer network in the fourth quarter and 11% for the 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
- By geography, fourth quarter sales performance was led by
Asia , up 1% on a reported basis and 7% in constant currency, withChina up high-single digits in reported dollars and low-double digits in constant currency.North America andEurope sales each grew 2% on a reported basis as continued momentum in direct-to-consumer more than offset expected declines in wholesale - For the full year,
Asia once again led regional performance, increasing 10% on a reported basis and 14% in constant currency, withChina delivering more than 25% growth in both reported and constant dollars - Continued to expand and scale our key city ecosystems over the past fiscal year, including: new emblematic store openings in
Amsterdam andSingapore , our firstRalph Lauren store and digital commerce site inCanada , and our first Ralph's Coffee inParis ,Shenzhen andDubai
- By geography, fourth quarter 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.
Fourth Quarter Fiscal 2024 Income Statement Review
Net Revenue. In the fourth quarter of Fiscal 2024, revenue increased 2% 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 increased 2% to$668 million . In retail, comparable store sales inNorth America increased 3%, with a 6% increase in brick and mortar stores more than offsetting a 4% decrease in digital commerce following stronger holiday performance.North America wholesale revenue decreased 2%, slightly ahead of our expectations as the Company carefully manages sell-in to align with consumer demand in the channel. We continue to evaluate our brand presence on a door-by-door basis, resulting in approximately 20 department store exits completed in the region this fiscal year.
- Europe Revenue.
Europe revenue in the fourth quarter increased 2% to$469 million on a reported basis and was up slightly in constant currency. Results included approximately 3 points of negative impact from a timing shift of wholesale shipments earlier in the year to maximize full-price selling. In retail, comparable store sales inEurope accelerated to 12% growth, with a 13% increase in brick and mortar stores and an 11% increase in digital commerce.Europe wholesale revenue decreased 6% to prior year on a reported basis and 8% in constant currency, with stronger re-order trends offset by the previously disclosed timing impacts noted above.
- Asia Revenue.
Asia revenue in the fourth quarter increased 1% to$394 million on a reported basis and 7% in constant currency. Comparable store sales inAsia increased 6%, with a 4% increase in our brick and mortar stores and a 19% increase in digital commerce.
Gross Profit. Gross profit for the fourth quarter of Fiscal 2024 was
Operating Expenses. Operating expenses in the fourth quarter of Fiscal 2024 were
Operating Income. Operating income for the fourth quarter of Fiscal 2024 was
- North America Operating Income.
North America operating income in the fourth quarter was$113 million on both a reported and adjusted basis.Adjusted North America operating margin was 17.0%, up 480 basis points to last year driven by gross margin expansion.
- Europe Operating Income.
Europe operating income in the fourth quarter was$112 million on both a reported and adjusted basis. AdjustedEurope operating margin was 23.9%, up 450 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 30 basis points in the fourth quarter.
- Asia Operating Income.
Asia operating income in the fourth quarter was$66 million on both a reported and adjusted basis. AdjustedAsia operating margin was 16.8%, up 260 basis points to last year. Foreign currency negatively impacted adjusted operating margin rate by 10 basis points in the fourth quarter.
Net Income and EPS. Net income in the fourth quarter of Fiscal 2024 was
In the fourth quarter of Fiscal 2024, the Company had an effective tax rate of approximately 19% on a reported basis and 20% on an adjusted basis. This compared to an effective tax rate of approximately 34% on a reported basis and 27% on an adjusted basis in the prior year period. The decline was driven primarily by favorable true-up adjustments, additional foreign tax benefits, and the reduction of certain prior year discrete tax accruals, partially offset by an increase in unfavorable audit reserve accruals as compared to prior year.
Full Year Fiscal 2024 Income Statement Review
Net Revenues. For Fiscal 2024, revenue increased 3% to
- North America Revenue. For Fiscal 2024,
North America revenue decreased 2% to$3.0 billion on a reported basis.
- Europe Revenue. For Fiscal 2024,
Europe revenue increased 7% to$2.0 billion on a reported basis. In constant currency, revenue increased 3%.
- Asia Revenue. For Fiscal 2024,
Asia revenue increased 10% to$1.6 billion on a reported basis. In constant currency, revenue increased 14%.
Gross Profit. Gross profit for Fiscal 2024 was
Operating Expenses. For Fiscal 2024, operating expenses were
Operating Income. Operating income for Fiscal 2024 was
- North America Operating Income.
North America operating income in Fiscal 2024 was$554 million and operating margin was 18.8% on a reported basis. On adjusted basis,North America operating income in Fiscal 2024 was$549 million and operating margin was 18.6%, 10 basis points below last year.
- Europe Operating Income.
Europe operating income in Fiscal 2024 was$465 million and operating margin was 23.6% on both a reported and adjusted basis. AdjustedEurope operating margin in Fiscal 2024 was 150 basis points above last year. Foreign currency favorably impacted adjusted operating margin rate by 20 basis points in the fourth quarter.
- Asia Operating Income.
Asia operating income in Fiscal 2024 was$336 million and operating margin was 21.4% on both a reported and adjusted basis. AdjustedAsia operating margin in Fiscal 2024 was 110 basis points above last year. Foreign currency negatively impacted adjusted operating margin rate by 20 basis points in the fourth quarter.
Net Income and EPS. In Fiscal 2024, net income was
For Fiscal 2024, the Company had an effective tax rate of 17% on a reported basis and 19% on an adjusted basis. This compared to both a reported and adjusted effective tax rate of 24% for Fiscal 2023.
Balance Sheet and Cash Flow Review
The Company ended Fiscal 2024 with
The Company repurchased approximately
The Company had
In a separate release today,
For more information, visit investor.ralphlauren.com/news-releases or corporate.ralphlauren.com/newsroom.
Dividend Increase
The Company also announced that its Board of Directors declared a 10% increase in the regular quarterly cash dividend on the Company's Common Stock. The new quarterly cash dividend is
Full Year Fiscal 2025 and First 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 first 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 expects revenues to increase low-single digits to last year on a constant currency basis, centering on about 2% to 3%. Based on current exchange rates, foreign currency is expected to negatively impact revenue growth by approximately 90 basis points in Fiscal 2025.
The Company expects 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 about 50 to 100 basis points in constant currency, with AUR growth, reduced cotton costs and favorable geographic and channel mix shift more than offsetting incremental product costs from materials and labor and freight costs related to
For the first quarter, the Company expects revenues to be up slightly to last year on a constant currency basis. On a reported basis, including approximately 160 basis points of negative foreign currency impact, revenues are expected to be down slightly to prior year. The revenue outlook includes approximately 50 basis points of negative impact from the earlier timing of Easter, which benefited our fourth quarter of Fiscal 2024.
Operating margin for the first quarter is expected to expand approximately 60 to 80 basis points in constant currency, driven by stronger gross margins. Gross margin expansion of approximately 140 to 180 basis points is expected to be driven by lower cotton costs and continued AUR growth partially offset by an increase in other product costs. Foreign currency is expected to have roughly 40 basis points of negative impact on both gross and operating margins in the first quarter.
The full year Fiscal 2025 tax rate is expected to be in the range of 23% to 24%, assuming a continuation of current tax laws. First quarter of Fiscal 2025 tax rate is expected to be about 24% to 25%.
The Company is planning 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, our ability to meet citizenship and sustainability goals, and the senior management of the Company. 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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|
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(millions) |
||||||
ASSETS |
|
|
|
|
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Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,662.2 |
|
|
$ |
1,529.3 |
|
Short-term investments |
|
|
121.0 |
|
|
|
36.4 |
|
Accounts receivable, net of allowances |
|
|
446.5 |
|
|
|
447.7 |
|
Inventories |
|
|
902.2 |
|
|
|
1,071.3 |
|
Income tax receivable |
|
|
56.0 |
|
|
|
50.7 |
|
Prepaid expenses and other current assets |
|
|
171.9 |
|
|
|
188.7 |
|
Total current assets |
|
|
3,359.8 |
|
|
|
3,324.1 |
|
Property and equipment, net |
|
|
850.4 |
|
|
|
955.5 |
|
Operating lease right-of-use assets |
|
|
1,014.6 |
|
|
|
1,134.0 |
|
Deferred tax assets |
|
|
288.3 |
|
|
|
255.1 |
|
|
|
|
888.1 |
|
|
|
898.9 |
|
Intangible assets, net |
|
|
75.7 |
|
|
|
88.9 |
|
Other non-current assets |
|
|
125.7 |
|
|
|
133.0 |
|
Total assets |
|
$ |
6,602.6 |
|
|
$ |
6,789.5 |
|
|
|
|
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LIABILITIES AND EQUITY |
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Current liabilities: |
|
|
|
|
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Accounts payable |
|
$ |
332.2 |
|
|
$ |
371.6 |
|
Current income tax payable |
|
|
79.8 |
|
|
|
59.7 |
|
Current operating lease liabilities |
|
|
245.5 |
|
|
|
266.7 |
|
Accrued expenses and other current liabilities |
|
|
809.7 |
|
|
|
795.5 |
|
Total current liabilities |
|
|
1,467.2 |
|
|
|
1,493.5 |
|
Long-term debt |
|
|
1,140.5 |
|
|
|
1,138.5 |
|
Long-term finance lease liabilities |
|
|
256.1 |
|
|
|
315.3 |
|
Long-term operating lease liabilities |
|
|
1,014.0 |
|
|
|
1,141.1 |
|
Non-current income tax payable |
|
|
42.2 |
|
|
|
75.9 |
|
Non-current liability for unrecognized tax benefits |
|
|
118.7 |
|
|
|
93.8 |
|
Other non-current liabilities |
|
|
113.6 |
|
|
|
100.9 |
|
Total liabilities |
|
|
4,152.3 |
|
|
|
4,359.0 |
|
Equity: |
|
|
|
|
||||
Common stock |
|
|
1.3 |
|
|
|
1.3 |
|
Additional paid-in-capital |
|
|
2,923.8 |
|
|
|
2,824.3 |
|
Retained earnings |
|
|
7,051.6 |
|
|
|
6,598.2 |
|
|
|
|
(7,250.3 |
) |
|
|
(6,797.3 |
) |
Accumulated other comprehensive loss |
|
|
(276.1 |
) |
|
|
(196.0 |
) |
Total equity |
|
|
2,450.3 |
|
|
|
2,430.5 |
|
Total liabilities and equity |
|
$ |
6,602.6 |
|
|
$ |
6,789.5 |
|
|
|
|
|
|
||||
|
|
$ |
642.7 |
|
|
$ |
427.2 |
|
Cash & Short-term Investments |
|
|
1,783.2 |
|
|
|
1,565.7 |
|
________________________ | |
(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 |
|
$ |
1,567.9 |
|
|
$ |
1,540.8 |
|
|
$ |
6,631.4 |
|
|
$ |
6,443.6 |
|
Cost of goods sold |
|
|
(524.2 |
) |
|
|
(590.2 |
) |
|
|
(2,199.6 |
) |
|
|
(2,277.8 |
) |
Gross profit |
|
|
1,043.7 |
|
|
|
950.6 |
|
|
|
4,431.8 |
|
|
|
4,165.8 |
|
Selling, general, and administrative expenses |
|
|
(906.6 |
) |
|
|
(878.2 |
) |
|
|
(3,600.5 |
) |
|
|
(3,408.9 |
) |
Impairment of assets |
|
|
— |
|
|
|
(9.5 |
) |
|
|
— |
|
|
|
(9.7 |
) |
Restructuring and other charges, net |
|
|
(29.3 |
) |
|
|
(22.7 |
) |
|
|
(74.9 |
) |
|
|
(43.0 |
) |
Total other operating expenses, net |
|
|
(935.9 |
) |
|
|
(910.4 |
) |
|
|
(3,675.4 |
) |
|
|
(3,461.6 |
) |
Operating income |
|
|
107.8 |
|
|
|
40.2 |
|
|
|
756.4 |
|
|
|
704.2 |
|
Interest expense |
|
|
(11.6 |
) |
|
|
(7.1 |
) |
|
|
(42.2 |
) |
|
|
(40.4 |
) |
Interest income |
|
|
20.8 |
|
|
|
13.4 |
|
|
|
73.0 |
|
|
|
32.2 |
|
Other income (expense), net |
|
|
(5.5 |
) |
|
|
2.7 |
|
|
|
(9.8 |
) |
|
|
(4.1 |
) |
Income before income taxes |
|
|
111.5 |
|
|
|
49.2 |
|
|
|
777.4 |
|
|
|
691.9 |
|
Income tax provision |
|
|
(20.8 |
) |
|
|
(16.9 |
) |
|
|
(131.1 |
) |
|
|
(169.2 |
) |
Net income |
|
$ |
90.7 |
|
|
$ |
32.3 |
|
|
$ |
646.3 |
|
|
$ |
522.7 |
|
Net income per common share: |
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||||||||
Basic |
|
$ |
1.41 |
|
|
$ |
0.49 |
|
|
$ |
9.91 |
|
|
$ |
7.72 |
|
Diluted |
|
$ |
1.38 |
|
|
$ |
0.48 |
|
|
$ |
9.71 |
|
|
$ |
7.58 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
64.3 |
|
|
|
66.4 |
|
|
|
65.2 |
|
|
|
67.7 |
|
Diluted |
|
|
65.5 |
|
|
|
67.8 |
|
|
|
66.5 |
|
|
|
69.0 |
|
Dividends declared per share |
|
$ |
0.75 |
|
|
$ |
0.75 |
|
|
$ |
3.00 |
|
|
$ |
3.00 |
|
|
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Prepared in accordance with |
||||||||
(Unaudited) |
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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 |
|
$ |
646.3 |
|
|
$ |
522.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization expense |
|
|
229.0 |
|
|
|
220.5 |
|
Deferred income tax expense (benefit) |
|
|
(41.1 |
) |
|
|
3.9 |
|
Stock-based compensation expense |
|
|
99.5 |
|
|
|
75.5 |
|
Impairment of assets |
|
|
— |
|
|
|
9.7 |
|
Bad debt expense |
|
|
7.3 |
|
|
|
2.3 |
|
Other non-cash charges |
|
|
13.7 |
|
|
|
1.0 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(15.3 |
) |
|
|
(52.6 |
) |
Inventories |
|
|
149.1 |
|
|
|
(106.2 |
) |
Prepaid expenses and other current assets |
|
|
16.1 |
|
|
|
(19.9 |
) |
Accounts payable and accrued liabilities |
|
|
15.6 |
|
|
|
(225.0 |
) |
Income tax receivables and payables |
|
|
(18.5 |
) |
|
|
5.7 |
|
Operating lease right-of-use assets and liabilities, net |
|
|
(36.3 |
) |
|
|
(17.5 |
) |
Other balance sheet changes |
|
|
4.3 |
|
|
|
(9.1 |
) |
Net cash provided by operating activities |
|
|
1,069.7 |
|
|
|
411.0 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(164.8 |
) |
|
|
(217.5 |
) |
Purchases of investments |
|
|
(392.8 |
) |
|
|
(598.6 |
) |
Proceeds from sales and maturities of investments |
|
|
304.3 |
|
|
|
1,293.4 |
|
Other investing activities |
|
|
(3.5 |
) |
|
|
(5.8 |
) |
Net cash provided by (used in) investing activities |
|
|
(256.8 |
) |
|
|
471.5 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Repayments of long-term debt |
|
|
— |
|
|
|
(500.0 |
) |
Payments of finance lease obligations |
|
|
(21.3 |
) |
|
|
(21.9 |
) |
Payments of dividends |
|
|
(194.6 |
) |
|
|
(198.3 |
) |
Repurchases of common stock, including shares surrendered for tax withholdings |
|
|
(449.7 |
) |
|
|
(488.6 |
) |
Net cash used in financing activities |
|
|
(665.6 |
) |
|
|
(1,208.8 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(13.6 |
) |
|
|
(8.8 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
133.7 |
|
|
|
(335.1 |
) |
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 |
|
$ |
1,670.6 |
|
|
$ |
1,536.9 |
|
|
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SEGMENT INFORMATION |
||||||||||||||||
(Unaudited) |
||||||||||||||||
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|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(millions) |
||||||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
667.7 |
|
|
$ |
655.6 |
|
|
$ |
2,950.5 |
|
|
$ |
3,020.5 |
|
|
|
|
469.2 |
|
|
|
460.8 |
|
|
|
1,968.0 |
|
|
|
1,839.2 |
|
|
|
|
394.3 |
|
|
|
390.0 |
|
|
|
1,566.6 |
|
|
|
1,426.7 |
|
Other non-reportable segments |
|
|
36.7 |
|
|
|
34.4 |
|
|
|
146.3 |
|
|
|
157.2 |
|
Total net revenues |
|
$ |
1,567.9 |
|
|
$ |
1,540.8 |
|
|
$ |
6,631.4 |
|
|
$ |
6,443.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
113.5 |
|
|
$ |
68.4 |
|
|
$ |
553.6 |
|
|
$ |
543.2 |
|
|
|
|
111.9 |
|
|
|
89.1 |
|
|
|
464.9 |
|
|
|
406.5 |
|
|
|
|
66.0 |
|
|
|
55.4 |
|
|
|
335.9 |
|
|
|
289.6 |
|
Other non-reportable segments |
|
|
31.6 |
|
|
|
32.3 |
|
|
|
128.9 |
|
|
|
146.4 |
|
|
|
|
323.0 |
|
|
|
245.2 |
|
|
|
1,483.3 |
|
|
|
1,385.7 |
|
Unallocated corporate expenses |
|
|
(185.9 |
) |
|
|
(182.3 |
) |
|
|
(652.0 |
) |
|
|
(638.5 |
) |
Unallocated restructuring and other charges, net |
|
|
(29.3 |
) |
|
|
(22.7 |
) |
|
|
(74.9 |
) |
|
|
(43.0 |
) |
Total operating income |
|
$ |
107.8 |
|
|
$ |
40.2 |
|
|
$ |
756.4 |
|
|
$ |
704.2 |
|
|
||||||||||||||
CONSTANT CURRENCY FINANCIAL MEASURES |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Comparable Store Sales Data |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||||
|
|
Three Months |
|
Twelve Months |
|
|
|
|
||||||
|
|
% Change |
|
% Change |
|
|
|
|
||||||
|
|
Constant Currency |
|
Constant Currency |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
(4 |
%) |
|
|
— |
% |
|
|
|
|
||
Brick and mortar |
|
|
6 |
% |
|
|
3 |
% |
|
|
|
|
||
|
|
|
3 |
% |
|
|
2 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
11 |
% |
|
|
11 |
% |
|
|
|
|
||
Brick and mortar |
|
|
13 |
% |
|
|
7 |
% |
|
|
|
|
||
Total |
|
|
12 |
% |
|
|
8 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Digital commerce |
|
|
19 |
% |
|
|
19 |
% |
|
|
|
|
||
Brick and mortar |
|
|
4 |
% |
|
|
10 |
% |
|
|
|
|
||
Total |
|
|
6 |
% |
|
|
10 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
6 |
% |
|
|
6 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Operating Segment Net Revenues Data |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As |
|
Constant |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
667.7 |
|
|
$ |
655.6 |
|
|
1.8 |
% |
|
1.8 |
% |
|
|
|
469.2 |
|
|
|
460.8 |
|
|
1.8 |
% |
|
0.5 |
% |
|
|
|
394.3 |
|
|
|
390.0 |
|
|
1.1 |
% |
|
7.3 |
% |
Other non-reportable segments |
|
|
36.7 |
|
|
|
34.4 |
|
|
6.8 |
% |
|
6.8 |
% |
Net revenues |
|
$ |
1,567.9 |
|
|
$ |
1,540.8 |
|
|
1.8 |
% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
|
Twelve Months Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
As Reported |
|
Constant Currency |
||||||
|
|
(millions) |
|
|
|
|
||||||||
|
|
$ |
2,950.5 |
|
|
$ |
3,020.5 |
|
|
(2.3 |
%) |
|
(2.2 |
%) |
|
|
|
1,968.0 |
|
|
|
1,839.2 |
|
|
7.0 |
% |
|
3.2 |
% |
|
|
|
1,566.6 |
|
|
|
1,426.7 |
|
|
9.8 |
% |
|
13.7 |
% |
Other non-reportable segments |
|
|
146.3 |
|
|
|
157.2 |
|
|
(6.9 |
%) |
|
(6.9 |
%) |
Net revenues |
|
$ |
6,631.4 |
|
|
$ |
6,443.6 |
|
|
2.9 |
% |
|
2.7 |
% |
|
||||||||||||||||||||||||||||||
NET REVENUES BY SALES CHANNEL |
||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North |
|
|
|
|
|
Other |
|
Total |
|
North |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
374.0 |
|
$ |
208.9 |
|
$ |
368.2 |
|
$ |
— |
|
$ |
951.1 |
|
$ |
357.3 |
|
$ |
182.8 |
|
$ |
358.5 |
|
$ |
— |
|
$ |
898.6 |
Wholesale |
|
|
293.7 |
|
|
260.3 |
|
|
26.1 |
|
|
— |
|
|
580.1 |
|
|
298.3 |
|
|
278.0 |
|
|
31.5 |
|
|
— |
|
|
607.8 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
36.7 |
|
|
36.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
34.4 |
|
|
34.4 |
Net revenues |
|
$ |
667.7 |
|
$ |
469.2 |
|
$ |
394.3 |
|
$ |
36.7 |
|
$ |
1,567.9 |
|
$ |
655.6 |
|
$ |
460.8 |
|
$ |
390.0 |
|
$ |
34.4 |
|
$ |
1,540.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
|
|
North |
|
|
|
|
|
Other |
|
Total |
|
North |
|
|
|
|
|
Other |
|
Total |
||||||||||
|
|
(millions) |
||||||||||||||||||||||||||||
Sales Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail |
|
$ |
1,915.9 |
|
$ |
971.3 |
|
$ |
1,463.8 |
|
$ |
— |
|
$ |
4,351.0 |
|
$ |
1,872.6 |
|
$ |
858.4 |
|
$ |
1,322.1 |
|
$ |
— |
|
$ |
4,053.1 |
Wholesale |
|
|
1,034.6 |
|
|
996.7 |
|
|
102.8 |
|
|
— |
|
|
2,134.1 |
|
|
1,147.9 |
|
|
980.8 |
|
|
104.6 |
|
|
— |
|
|
2,233.3 |
Licensing |
|
|
— |
|
|
— |
|
|
— |
|
|
146.3 |
|
|
146.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
157.2 |
|
|
157.2 |
Net revenues |
|
$ |
2,950.5 |
|
$ |
1,968.0 |
|
$ |
1,566.6 |
|
$ |
146.3 |
|
$ |
6,631.4 |
|
$ |
3,020.5 |
|
$ |
1,839.2 |
|
$ |
1,426.7 |
|
$ |
157.2 |
|
$ |
6,443.6 |
|
||||
GLOBAL RETAIL STORE NETWORK |
||||
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50 |
|
48 |
Outlet Stores |
|
180 |
|
189 |
Total Directly Operated Stores |
|
230 |
|
237 |
Concessions |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
44 |
|
43 |
Outlet Stores |
|
59 |
|
61 |
Total Directly Operated Stores |
|
103 |
|
104 |
Concessions |
|
27 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
138 |
|
118 |
Outlet Stores |
|
93 |
|
94 |
Total Directly Operated Stores |
|
231 |
|
212 |
Concessions |
|
671 |
|
692 |
|
|
|
|
|
Global Directly Operated Stores and Concessions |
|
|
|
|
|
|
232 |
|
209 |
Outlet Stores |
|
332 |
|
344 |
Total Directly Operated Stores |
|
564 |
|
553 |
Concessions |
|
699 |
|
722 |
|
|
|
|
|
Global Licensed Stores |
|
|
|
|
Total Licensed Stores |
|
195 |
|
182 |
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
Foreign |
|
As |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
1,567.9 |
|
|
$ |
— |
|
|
$ |
1,567.9 |
|
|
$ |
18.0 |
|
|
$ |
1,585.9 |
|
Gross profit |
|
|
1,043.7 |
|
|
|
— |
|
|
|
1,043.7 |
|
|
|
17.1 |
|
|
|
1,060.8 |
|
Gross profit margin |
|
|
66.6 |
% |
|
|
|
|
66.6 |
% |
|
|
|
|
66.9 |
% |
||||
Total other operating expenses, net |
|
|
(935.9 |
) |
|
|
29.2 |
|
|
|
(906.7 |
) |
|
|
(11.7 |
) |
|
|
(918.4 |
) |
Operating expense margin |
|
|
59.7 |
% |
|
|
|
|
57.8 |
% |
|
|
|
|
57.9 |
% |
||||
Operating income |
|
|
107.8 |
|
|
|
29.2 |
|
|
|
137.0 |
|
|
|
5.4 |
|
|
|
142.4 |
|
Operating margin |
|
|
6.9 |
% |
|
|
|
|
8.7 |
% |
|
|
|
|
9.0 |
% |
||||
Income before income taxes |
|
|
111.5 |
|
|
|
29.2 |
|
|
|
140.7 |
|
|
|
|
|
||||
Income tax provision |
|
|
(20.8 |
) |
|
|
(8.1 |
) |
|
|
(28.9 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
18.7 |
% |
|
|
|
|
20.5 |
% |
|
|
|
|
||||||
Net income |
|
$ |
90.7 |
|
|
$ |
21.1 |
|
|
$ |
111.8 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
1.38 |
|
|
$ |
0.33 |
|
|
$ |
1.71 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
667.7 |
|
|
$ |
— |
|
|
$ |
667.7 |
|
|
$ |
(0.1 |
) |
|
$ |
667.6 |
|
|
|
|
469.2 |
|
|
|
— |
|
|
|
469.2 |
|
|
|
(6.1 |
) |
|
|
463.1 |
|
|
|
|
394.3 |
|
|
|
— |
|
|
|
394.3 |
|
|
|
24.2 |
|
|
|
418.5 |
|
Other non-reportable segments |
|
|
36.7 |
|
|
|
— |
|
|
|
36.7 |
|
|
|
— |
|
|
|
36.7 |
|
Total revenue |
|
$ |
1,567.9 |
|
|
$ |
— |
|
|
$ |
1,567.9 |
|
|
$ |
18.0 |
|
|
$ |
1,585.9 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
113.5 |
|
|
$ |
— |
|
|
$ |
113.5 |
|
|
|
|
|
||||
Operating margin |
|
|
17.0 |
% |
|
|
|
|
17.0 |
% |
|
|
|
|
||||||
|
|
|
111.9 |
|
|
|
(0.1 |
) |
|
|
111.8 |
|
|
|
|
|
||||
Operating margin |
|
|
23.9 |
% |
|
|
|
|
23.9 |
% |
|
|
|
|
||||||
|
|
|
66.0 |
|
|
|
— |
|
|
|
66.0 |
|
|
|
|
|
||||
Operating margin |
|
|
16.8 |
% |
|
|
|
|
16.8 |
% |
|
|
|
|
||||||
Other non-reportable segments |
|
|
31.6 |
|
|
|
— |
|
|
|
31.6 |
|
|
|
|
|
||||
Operating margin |
|
|
85.8 |
% |
|
|
|
|
85.8 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(215.2 |
) |
|
|
29.3 |
|
|
|
(185.9 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
107.8 |
|
|
$ |
29.2 |
|
|
$ |
137.0 |
|
|
|
|
|
|
||||||||||||||||||||
RECONCILIATION OF NON- |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
As |
|
Total |
|
As |
|
Foreign |
|
As |
||||||||||
|
|
(millions, except per share data) |
||||||||||||||||||
Net revenues |
|
$ |
6,631.4 |
|
|
$ |
— |
|
|
$ |
6,631.4 |
|
|
$ |
(12.4 |
) |
|
$ |
6,619.0 |
|
Gross profit |
|
|
4,431.8 |
|
|
|
(4.5 |
) |
|
|
4,427.3 |
|
|
|
4.9 |
|
|
|
4,432.2 |
|
Gross profit margin |
|
|
66.8 |
% |
|
|
|
|
66.8 |
% |
|
|
|
|
67.0 |
% |
||||
Total other operating expenses, net |
|
|
(3,675.4 |
) |
|
|
74.4 |
|
|
|
(3,601.0 |
) |
|
|
(11.4 |
) |
|
|
(3,612.4 |
) |
Operating expense margin |
|
|
55.4 |
% |
|
|
|
|
54.3 |
% |
|
|
|
|
54.6 |
% |
||||
Operating income |
|
|
756.4 |
|
|
|
69.9 |
|
|
|
826.3 |
|
|
|
(6.5 |
) |
|
|
819.8 |
|
Operating margin |
|
|
11.4 |
% |
|
|
|
|
12.5 |
% |
|
|
|
|
12.4 |
% |
||||
Income before income taxes |
|
|
777.4 |
|
|
|
69.9 |
|
|
|
847.3 |
|
|
|
|
|
||||
Income tax provision |
|
|
(131.1 |
) |
|
|
(30.4 |
) |
|
|
(161.5 |
) |
|
|
|
|
||||
Effective tax rate |
|
|
16.9 |
% |
|
|
|
|
19.1 |
% |
|
|
|
|
||||||
Net income |
|
$ |
646.3 |
|
|
$ |
39.5 |
|
|
$ |
685.8 |
|
|
|
|
|
||||
Net income per diluted common share |
|
$ |
9.71 |
|
|
$ |
0.60 |
|
|
$ |
10.31 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
2,950.5 |
|
|
$ |
— |
|
|
$ |
2,950.5 |
|
|
$ |
2.2 |
|
|
$ |
2,952.7 |
|
|
|
|
1,968.0 |
|
|
|
— |
|
|
|
1,968.0 |
|
|
|
(69.6 |
) |
|
|
1,898.4 |
|
|
|
|
1,566.6 |
|
|
|
— |
|
|
|
1,566.6 |
|
|
|
55.0 |
|
|
|
1,621.6 |
|
Other non-reportable segments |
|
|
146.3 |
|
|
|
— |
|
|
|
146.3 |
|
|
|
— |
|
|
|
146.3 |
|
Total revenue |
|
$ |
6,631.4 |
|
|
$ |
— |
|
|
$ |
6,631.4 |
|
|
$ |
(12.4 |
) |
|
$ |
6,619.0 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
553.6 |
|
|
$ |
(4.7 |
) |
|
$ |
548.9 |
|
|
|
|
|
||||
Operating margin |
|
|
18.8 |
% |
|
|
|
|
18.6 |
% |
|
|
|
|
||||||
|
|
|
464.9 |
|
|
|
(0.3 |
) |
|
|
464.6 |
|
|
|
|
|
||||
Operating margin |
|
|
23.6 |
% |
|
|
|
|
23.6 |
% |
|
|
|
|
||||||
|
|
|
335.9 |
|
|
|
— |
|
|
|
335.9 |
|
|
|
|
|
||||
Operating margin |
|
|
21.4 |
% |
|
|
|
|
21.4 |
% |
|
|
|
|
||||||
Other non-reportable segments |
|
|
128.9 |
|
|
|
— |
|
|
|
128.9 |
|
|
|
|
|
||||
Operating margin |
|
|
88.1 |
% |
|
|
|
|
88.1 |
% |
|
|
|
|
||||||
Unallocated corporate expenses and restructuring & other charges, net |
|
|
(726.9 |
) |
|
|
74.9 |
|
|
|
(652.0 |
) |
|
|
|
|
||||
Total operating income |
|
$ |
756.4 |
|
|
$ |
69.9 |
|
|
$ |
826.3 |
|
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON- |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
||||||||||
|
|
As |
|
Total |
|
As |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
1,540.8 |
|
|
$ |
— |
|
|
$ |
1,540.8 |
|
Gross profit |
|
|
950.6 |
|
|
|
2.2 |
|
|
|
952.8 |
|
Gross profit margin |
|
|
61.7 |
% |
|
|
|
|
61.8 |
% |
||
Total other operating expenses, net |
|
|
(910.4 |
) |
|
|
32.5 |
|
|
|
(877.9 |
) |
Operating expense margin |
|
|
59.1 |
% |
|
|
|
|
57.0 |
% |
||
Operating income |
|
|
40.2 |
|
|
|
34.7 |
|
|
|
74.9 |
|
Operating margin |
|
|
2.6 |
% |
|
|
|
|
4.9 |
% |
||
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 |
|
|
|
|
460.8 |
|
|
|
— |
|
|
|
460.8 |
|
|
|
|
390.0 |
|
|
|
— |
|
|
|
390.0 |
|
Other non-reportable segments |
|
|
34.4 |
|
|
|
— |
|
|
|
34.4 |
|
Total revenue |
|
$ |
1,540.8 |
|
|
$ |
— |
|
|
$ |
1,540.8 |
|
|
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
68.4 |
|
|
$ |
11.7 |
|
|
$ |
80.1 |
|
Operating margin |
|
|
10.4 |
% |
|
|
|
|
12.2 |
% |
||
|
|
|
89.1 |
|
|
|
0.3 |
|
|
|
89.4 |
|
Operating margin |
|
|
19.3 |
% |
|
|
|
|
19.4 |
% |
||
|
|
|
55.4 |
|
|
|
— |
|
|
|
55.4 |
|
Operating margin |
|
|
14.2 |
% |
|
|
|
|
14.2 |
% |
||
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 |
||||||
|
|
(millions, except per share data) |
||||||||||
Net revenues |
|
$ |
6,443.6 |
|
|
$ |
— |
|
|
$ |
6,443.6 |
|
Gross profit |
|
|
4,165.8 |
|
|
|
15.4 |
|
|
|
4,181.2 |
|
Gross profit margin |
|
|
64.6 |
% |
|
|
|
|
64.9 |
% |
||
Total other operating expenses, net |
|
|
(3,461.6 |
) |
|
|
50.6 |
|
|
|
(3,411.0 |
) |
Operating expense margin |
|
|
53.7 |
% |
|
|
|
|
52.9 |
% |
||
Operating income |
|
|
704.2 |
|
|
|
66.0 |
|
|
|
770.2 |
|
Operating margin |
|
|
10.9 |
% |
|
|
|
|
12.0 |
% |
||
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 |
|
|
|
|
1,839.2 |
|
|
|
— |
|
|
|
1,839.2 |
|
|
|
|
1,426.7 |
|
|
|
— |
|
|
|
1,426.7 |
|
Other non-reportable segments |
|
|
157.2 |
|
|
|
— |
|
|
|
157.2 |
|
Total revenue |
|
$ |
6,443.6 |
|
|
$ |
— |
|
|
$ |
6,443.6 |
|
|
|
|
|
|
|
|
||||||
OPERATING INCOME: |
|
|
|
|
|
|
||||||
|
|
$ |
543.2 |
|
|
$ |
21.9 |
|
|
$ |
565.1 |
|
Operating margin |
|
|
18.0 |
% |
|
|
|
|
18.7 |
% |
||
|
|
|
406.5 |
|
|
|
0.8 |
|
|
|
407.3 |
|
Operating margin |
|
|
22.1 |
% |
|
|
|
|
22.1 |
% |
||
|
|
|
289.6 |
|
|
|
— |
|
|
|
289.6 |
|
Operating margin |
|
|
20.3 |
% |
|
|
|
|
20.3 |
% |
||
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 |
|
FOOTNOTES TO RECONCILIATION OF NON-
- Adjustments for non-routine inventory-related charges (benefits) are recorded within cost of goods sold in the consolidated statements of operations. Adjustments for non-routine bad debt expense (benefit) 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.
- Adjustments for the three months ended
March 30, 2024 include (i) charges of$17.5 million recorded in connection with the Company's restructuring activities, primarily associated with severance and benefit costs; (ii) a$7.0 million charitable donation expense related to consideration received fromRegent, L.P. ("Regent") in connection with the Company's previously sold Club Monaco business; (iii) other charges of$4.8 million , comprised of$2.7 million related to the Next Generation Transformation project and$2.1 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; and (iv) benefit of$0.1 million related toRussia -related bad debt reserve adjustments. Additionally, the income tax provision reflects a benefit of$1.3 million recorded in connection with Swiss tax reform and theEuropean Union's anti-tax avoidance directive. - Adjustments for the twelve months ended
March 30, 2024 include (i) charges of$55.8 million recorded in connection with the Company's restructuring activities, primarily associated with severance and benefit costs; (ii) other charges of$19.1 million , comprised of$14.0 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired and$5.1 million related to the Next Generation Transformation project; (iii) a$7.0 million charitable donation expense related to consideration received from Regent in connection with the Company's previously sold Club Monaco business; (iv) income of$7.0 million related to the beforementioned consideration received from Regent; (v) non-routine inventory benefits of$4.5 million primarily related to reversals of amounts previously recognized in connection with delays inU.S. customs shipment reviews and approvals and the COVID-19 pandemic; and (vi) benefit of$0.5 million primarily related toRussia -related bad debt reserve adjustments. Additionally, the income tax provision reflects a benefit of$13.1 million recorded in connection with Swiss tax reform and theEuropean Union's anti-tax avoidance directive. - Adjustments for the three months ended
April 1, 2023 include (i) charges of$13.3 million recorded in connection with the Company's restructuring activities; (ii) additional impairment of assets of$9.5 million related to a certain previously exited real estate location for which the related lease agreement had not yet expired; (iii) other charges of$6.2 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; (iv) a$3.5 million charitable donation expense related to related to consideration received from Regent in connection with the Company's previously sold Club Monaco business; (v) non-routine inventory charges of$1.9 million largely recorded in connection with theRussia -Ukraine war and delays inU.S. customs shipment reviews and approvals; and (vi) expense of$0.3 million related toRussia -related bad debt reserve adjustments. - Adjustments for the twelve months ended
April 1, 2023 include (i) other charges of$23.8 million primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired; (ii) charges of$19.7 million recorded in connection with the Company's restructuring activities; (iii) non-routine inventory charges of$15.1 million largely recorded in connection with theRussia -Ukraine war and delays inU.S. customs shipment reviews and approvals; (iv) additional impairment of assets of$9.5 million related to a certain previously exited real estate location for which the related lease agreement had not yet expired; (v) a$3.5 million charitable donation expense related to consideration received from Regent in connection with the Company's previously sold Club Monaco business; (vi) income of$3.5 million related to the beforementioned consideration received from Regent; and (v) benefit of$2.1 million related toRussia -related bad debt reserve adjustments.
NON-
Because
This earnings release also includes certain other non-
Adjustments made during the fiscal periods presented include charges recorded in connection with the Company's restructuring activities, as well as certain other charges (benefits) associated with other non-recurring events, as described in the footnotes to the non-
Additionally, the Company's full year Fiscal 2025 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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