- 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,
Effective May 23, 2024, Following Multi-Year Succession Plan; Jane
Nielsen to Remain in Chief Operating Officer Role Through Fiscal
2025
Ralph Lauren Corporation (NYSE:RL), a global leader in the
design, marketing, and distribution of luxury lifestyle products,
today reported earnings per diluted share of $1.38 on a reported
basis and $1.71 on an adjusted basis, excluding
restructuring-related and other net charges, for the fourth quarter
of Fiscal 2024. This compared to earnings per diluted share of
$0.48 on a reported basis and $0.90 on an adjusted basis, excluding
restructuring-related and other net charges, for the fourth quarter
of Fiscal 2023.
"Our brand has always been about inspiring people to live the
life of their dreams," said Ralph Lauren, Executive Chairman and
Chief Creative Officer. "We marry elegance and style in
aspirational worlds — from our recent fashion show featuring
elevated classics to the vibrant home line we showcased last month
in Milan — our teams around the world are delivering our vision
with passion and care."
"Our teams delivered continued progress on our strategic and
financial commitments in year two of our Next Great Chapter:
Accelerate plan," said Patrice Louvet, President and Chief
Executive Officer. "Supported by our increasing brand desirability
and multiple engines of growth, this year's performance underscores
the strength of our long-term strategy, even as we navigate a
highly dynamic global operating environment."
Mr. Louvet continued, "Looking ahead to Fiscal 2025, we are
staying on offense by continuing to invest in our brand, our
portfolio of iconic core products and our consumer-centric
ecosystems in top cities globally. This focus — combined with our
culture of operating discipline and the agility and dedication of
our passionate teams — will continue to fuel our sustainable growth
and value creation into the future."
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 including Beyoncé
on her new album press tour and Reba McEntire at the Super
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 captain Aaron Judge; our second
Artist in Residence capsule, 'Color in Motion'; and Lunar 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, with China
up high-single digits in reported dollars and low-double digits in
constant currency. North America and Europe 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,
with China 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 and Singapore, our first Ralph Lauren store and digital
commerce site in Canada, and our first Ralph's Coffee in Paris,
Shenzhen and Dubai
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 $1.6 billion on a reported basis and was up
3% in constant currency. Foreign currency negatively impacted
revenue growth by approximately 110 basis points in the fourth
quarter. A shift in the timing of this year's Easter holiday
benefited revenue growth by approximately 50 basis points in the
fourth quarter.
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 in North 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 in Europe 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 in Asia 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 $1.0 billion and gross margin was 66.6%. Adjusted
gross margin was also 66.6%, 480 basis points above the prior year.
Gross margin expansion was driven by lower freight costs, favorable
channel and geographic mix shifts, and AUR growth across all
regions. Recent pressure from cotton inflation started to abate
late in the fourth quarter as expected based on moderating cotton
costs.
Operating Expenses. Operating expenses in the fourth
quarter of Fiscal 2024 were $936 million on a reported basis. On an
adjusted basis, operating expenses were $907 million, up 3% to last
year. Adjusted operating expense rate was 57.8%, compared to 57.0%
in the prior year. The increase was driven by channel and
geographic mix shift resulting from stronger growth in the
Company's international and direct-to-consumer businesses.
Operating Income. Operating income for the fourth quarter
of Fiscal 2024 was $108 million and operating margin was 6.9% on a
reported basis. On an adjusted basis, operating income was $137
million and operating margin was 8.7%, 380 basis points above the
prior year. Operating income for the Company's reportable segments
in the fourth quarter compared to the prior year period was as
follows:
- 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.
Adjusted Europe 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.
Adjusted Asia 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 $91 million, or $1.38 per diluted share on a
reported basis. On an adjusted basis, net income was $112 million,
or $1.71 per diluted share. This compared to net income of $32
million, or $0.48 per diluted share on a reported basis, and net
income of $61 million, or $0.90 per diluted share on an adjusted
basis, for the fourth quarter of Fiscal 2023.
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
$6.6 billion on both a reported and constant currency basis.
Foreign currency favorably impacted revenue growth by approximately
20 basis points in the period.
- 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 $4.4
billion on a reported basis and gross margin was 66.8%. Adjusted
gross margin was also 66.8%, 190 basis points above the prior year.
Foreign currency negatively impacted gross margin by 20 basis
points in Fiscal 2024.
Operating Expenses. For Fiscal 2024, operating expenses
were $3.7 billion on a reported basis, including $75 million in
restructuring-related and other net charges. Adjusted operating
expenses were $3.6 billion, up 6% to last year. Adjusted operating
expense rate was 54.3%, 140 basis points above the prior year.
Operating Income. Operating income for Fiscal 2024 was
$756 million and operating margin was 11.4% on a reported basis. On
an adjusted basis, operating income was $826 million and operating
margin was 12.5%, 50 basis points above the prior year. Operating
income for the Company's reportable segments in Fiscal 2024
compared to the prior year was as follows:
- 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. Adjusted Europe 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. Adjusted Asia 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 $646
million, or $9.71 per diluted share on a reported basis. On an
adjusted basis, net income was $686 million, or $10.31 per diluted
share. This compared to net income of $523 million, or $7.58 per
diluted share on a reported basis, and net income of $576 million,
or $8.34 per diluted share on an adjusted basis for Fiscal
2023.
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 $1.8 billion in cash and
short-term investments and $1.1 billion in total debt, compared to
$1.6 billion and $1.1 billion, respectively, at the end of Fiscal
2023. Inventory at the end of Fiscal 2024 was $902 million, down
16% compared to the prior year period.
The Company repurchased approximately $121 million of Class A
Common Stock in the fourth quarter and approximately $398 million
of Class A Common Stock during the full year Fiscal 2024. At the
end of Fiscal 2024, the Company had approximately $776 million
remaining under its total share repurchase authorization, with
future repurchases subject to overall business and market
conditions.
The Company had $165 million in capital expenditures in Fiscal
2024, compared to $217 million in the prior year period. The
decline was primarily due to a lower number of total new store
openings in Fiscal 2024 compared to Fiscal 2023, along with the
timing of certain new store openings and renovations that were
shifted into Fiscal 2025.
Ralph Lauren Names Justin Picicci as Chief Financial
Officer
In a separate release today, Justin Picicci was named Chief
Financial Officer (CFO), effective May 23, 2024. Mr. Picicci has a
successful 18-year track record at Ralph Lauren with progressive
responsibilities spanning Commercial and Corporate Finance
functions in Asia and North America, most recently serving as
Enterprise Chief Financial Officer. His appointment was part of a
multi-year strategic succession plan to enable a seamless
transition. Jane Nielsen, who joined the Company as CFO in 2016 and
has served as CFO and Chief Operating Officer (COO) since 2019,
will remain the Company’s COO, continuing to lead key operational
and strategy functions through March 2025.
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 $0.825
per share for a total annual dividend amount of $3.30 per share.
The next quarterly dividend will be paid on July 12, 2024 to
shareholders of record at the close of business on June 28,
2024.
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-U.S. GAAP Financial
Measures" section of this press release.
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 Red Sea disruptions. Foreign currency is expected
to negatively impact gross and operating margins by approximately
30 basis points in Fiscal 2025.
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 $300 million to $325 million.
Conference Call
As previously announced, the Company will host a conference call
and live online webcast today, Thursday, May 23, 2024, at 9:00 A.M.
Eastern. Listeners may access a live broadcast of the conference
call on the Company investor relations website at
http://investor.ralphlauren.com or by dialing 517-623-4963 or
800-857-5209. To access the conference call, listeners should dial
in by 8:45 A.M. Eastern and request to be connected to the Ralph
Lauren Fourth Quarter 2024 conference call.
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 P.M. Eastern, Thursday, May 23, 2024
through 6:00 P.M. Eastern, Thursday, May 30, 2024 by dialing
203-369-3269 or 800-391-9853 and entering passcode 3695.
ABOUT RALPH LAUREN
Ralph Lauren Corporation (NYSE:RL) is a global leader in the
design, marketing and distribution of luxury lifestyle products in
five categories: apparel, footwear & accessories, home,
fragrances, and hospitality. For more than 50 years, Ralph Lauren
has sought to inspire the dream of a better life through
authenticity and timeless style. Its reputation and distinctive
image have been developed across a wide range of products, brands,
distribution channels and international markets. The Company's
brand names — which include Ralph Lauren, Ralph Lauren Collection,
Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren
Ralph Lauren, Polo Ralph Lauren Children and Chaps, among others —
constitute one of the world's most widely recognized families of
consumer brands. For more information, go to
https://investor.ralphlauren.com.
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. Ralph Lauren, or other changes in our executive and
senior management team or to our operating structure, including any
potential changes resulting from the execution of our long-term
growth strategy, and our ability to effectively transfer knowledge
and maintain adequate controls and procedures during periods of
transition; the potential impact to our business resulting from
inflationary pressures, including increases in the costs of raw
materials, transportation, wages, healthcare, and other
benefit-related costs; the impact of economic, political, and other
conditions on us, our customers, suppliers, vendors, and lenders,
including potential business disruptions related to the
Russia-Ukraine and Israel-Hamas wars, militant attacks on cargo
vessels in the Red Sea, civil and political unrest, diplomatic
tensions between the U.S. and other countries, rising interest
rates, and bank failures, among other factors described herein; the
potential impact to our business resulting from supply chain
disruptions, including those caused by capacity constraints, closed
factories and/or labor shortages (stemming from pandemic diseases,
labor disputes, strikes, or otherwise), scarcity of raw materials,
port congestion, and scrutiny or detention of goods produced in
certain territories resulting from laws, regulations, or trade
restrictions, such as those imposed by the Uyghur Forced Labor
Prevention Act ("UFLPA") or the Countering America's Adversaries
Through Sanctions Act ("CAATSA"), which could result in shipment
approval delays leading to inventory shortages and lost sales, as
well as potential shipping delays, inventory shortages, and/or
higher freight costs resulting from the recent Red Sea crisis
and/or disruptions to major waterways such as the Suez and Panama
canals; our ability to effectively manage inventory levels and the
increasing pressure on our margins in a highly promotional retail
environment; our exposure to currency exchange rate fluctuations
from both a transactional and translational perspective; our
ability to recruit and retain qualified employees to operate our
retail stores, distribution centers, and various corporate
functions; the impact to our business resulting from a recession or
changes in consumers' ability, willingness, or preferences to
purchase discretionary items and luxury retail products, which
tends to decline during recessionary periods, and our ability to
accurately forecast consumer demand, the failure of which could
result in either a build-up or shortage of inventory; our ability
to successfully implement our long-term growth strategy; our
ability to continue to expand and grow our business internationally
and the impact of related changes in our customer, channel, and
geographic sales mix as a result, as well as our ability to
accelerate growth in certain product categories; our ability to
open new retail stores and concession shops, as well as enhance and
expand our digital footprint and capabilities, all in an effort to
expand our direct-to-consumer presence; our ability to respond to
constantly changing fashion and retail trends and consumer demands
in a timely manner, develop products that resonate with our
existing customers and attract new customers, and execute marketing
and advertising programs that appeal to consumers; our ability to
competitively price our products and create an acceptable value
proposition for consumers; our ability to continue to maintain our
brand image and reputation and protect our trademarks; our ability
to achieve our goals regarding citizenship and sustainability
practices, including those related to climate change and our human
capital and supply chain; our ability and the ability of our
third-party service providers to secure our respective facilities
and systems from, among other things, cybersecurity breaches, acts
of vandalism, computer viruses, ransomware, or similar Internet or
email events; our efforts to successfully enhance, upgrade, and/or
transition our global information technology systems and digital
commerce platforms; the potential impact to our business if any of
our distribution centers were to become inoperable or inaccessible;
the potential impact to our business resulting from pandemic
diseases such as COVID-19, including periods of reduced operating
hours and capacity limits and/or temporary closure of our stores,
distribution centers, and corporate facilities, as well as those of
our customers, suppliers, and vendors, and potential changes to
consumer behavior, spending levels, and/or shopping preferences,
such as willingness to congregate in shopping centers or other
populated locations; the potential impact on our operations and on
our suppliers and customers resulting from man-made or natural
disasters, including pandemic diseases, severe weather, geological
events, and other catastrophic events, such as terrorist attacks,
military conflicts, and other hostilities; our ability to achieve
anticipated operating enhancements and cost reductions from our
restructuring plans, as well as the impact to our business
resulting from restructuring-related charges, which may be dilutive
to our earnings in the short term; the impact to our business
resulting from potential costs and obligations related to the early
or temporary closure of our stores or termination of our long-term,
non-cancellable leases; our ability to maintain adequate levels of
liquidity to provide for our cash needs, including our debt
obligations, tax obligations, capital expenditures, and potential
payment of dividends and repurchases of our Class A common stock,
as well as the ability of our customers, suppliers, vendors, and
lenders to access sources of liquidity to provide for their own
cash needs; the potential impact to our business resulting from the
financial difficulties of certain of our large wholesale customers,
which may result in consolidations, liquidations, restructurings,
and other ownership changes in the retail industry, as well as
other changes in the competitive marketplace, including the
introduction of new products or pricing changes by our competitors;
our ability to access capital markets and maintain compliance with
covenants associated with our existing debt instruments; a variety
of legal, regulatory, tax, political, and economic risks, including
risks related to the importation and exportation of products which
our operations are currently subject to, or may become subject to
as a result of potential changes in legislation, and other risks
associated with our international operations, such as compliance
with the Foreign Corrupt Practices Act or violations of other
anti-bribery and corruption laws prohibiting improper payments, and
the burdens of complying with a variety of foreign laws and
regulations, including tax laws, trade and labor restrictions, and
related laws that may reduce the flexibility of our business; the
impact to our business resulting from the potential imposition of
additional duties, tariffs, taxes, and other charges or barriers to
trade, including those resulting from trade developments between
the U.S. and China or other countries, and any related impact to
global stock markets, as well as our ability to implement
mitigating sourcing strategies; changes in our tax obligations and
effective tax rate due to a variety of factors, including potential
changes in U.S. or foreign tax laws and regulations, accounting
rules, or the mix and level of earnings by jurisdiction in future
periods that are not currently known or anticipated; the potential
impact to the trading prices of our securities if our operating
results, Class A common stock share repurchase activity, and/or
cash dividend payments differ from investors' expectations; our
ability to maintain our credit profile and ratings within the
financial community; our intention to introduce new products or
brands, or enter into or renew alliances; changes in the business
of, and our relationships with, major wholesale customers and
licensing partners; our ability to make strategic acquisitions and
successfully integrate the acquired businesses into our existing
operations; and other risk factors identified in the Company’s
Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed
with the Securities and Exchange Commission. The Company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
RALPH LAUREN
CORPORATION
CONSOLIDATED BALANCE
SHEETS
Prepared in accordance with
U.S. Generally Accepted Accounting Principles
(Unaudited)
March 30, 2024
April 1, 2023
(millions)
ASSETS
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
Goodwill
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
LIABILITIES AND EQUITY
Current liabilities:
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
Treasury stock, Class A, at cost
(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
Net Cash & Short-term
Investments(a)
$
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.
RALPH LAUREN
CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
Prepared in accordance with
U.S. Generally Accepted Accounting Principles
(Unaudited)
Three Months Ended
Twelve Months Ended
March 30, 2024
April 1, 2023
March 30, 2024
April 1, 2023
(millions, except per share
data)
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:
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
RALPH LAUREN
CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Prepared in accordance with
U.S. Generally Accepted Accounting Principles
(Unaudited)
Twelve Months Ended
March 30, 2024
April 1, 2023
(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
RALPH LAUREN
CORPORATION
SEGMENT INFORMATION
(Unaudited)
Three Months Ended
Twelve Months Ended
March 30, 2024
April 1, 2023
March 30, 2024
April 1, 2023
(millions)
Net revenues:
North America
$
667.7
$
655.6
$
2,950.5
$
3,020.5
Europe
469.2
460.8
1,968.0
1,839.2
Asia
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:
North America
$
113.5
$
68.4
$
553.6
$
543.2
Europe
111.9
89.1
464.9
406.5
Asia
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
RALPH LAUREN
CORPORATION
CONSTANT CURRENCY FINANCIAL
MEASURES
(Unaudited)
Comparable Store Sales Data
March 30, 2024
Three Months
Ended
Twelve Months
Ended
% Change
% Change
Constant Currency
Constant Currency
North America:
Digital commerce
(4
%)
—
%
Brick and mortar
6
%
3
%
Total North America
3
%
2
%
Europe:
Digital commerce
11
%
11
%
Brick and mortar
13
%
7
%
Total Europe
12
%
8
%
Asia:
Digital commerce
19
%
19
%
Brick and mortar
4
%
10
%
Total Asia
6
%
10
%
Total Ralph Lauren Corporation
6
%
6
%
Operating Segment Net Revenues
Data
Three Months Ended
% Change
March 30, 2024
April 1, 2023
As Reported
Constant
Currency
(millions)
North America
$
667.7
$
655.6
1.8
%
1.8
%
Europe
469.2
460.8
1.8
%
0.5
%
Asia
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
March 30, 2024
April 1, 2023
As
Reported
Constant
Currency
(millions)
North America
$
2,950.5
$
3,020.5
(2.3
%)
(2.2
%)
Europe
1,968.0
1,839.2
7.0
%
3.2
%
Asia
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
%
RALPH LAUREN
CORPORATION
NET REVENUES BY SALES
CHANNEL
(Unaudited)
Three Months Ended
March 30, 2024
April 1, 2023
North America
Europe
Asia
Other
Total
North America
Europe
Asia
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
March 30, 2024
April 1, 2023
North America
Europe
Asia
Other
Total
North America
Europe
Asia
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
RALPH LAUREN
CORPORATION
GLOBAL RETAIL STORE
NETWORK
(Unaudited)
March 30, 2024
April 1, 2023
North
America
Ralph Lauren Stores
50
48
Outlet Stores
180
189
Total Directly Operated Stores
230
237
Concessions
1
1
Europe
Ralph Lauren Stores
44
43
Outlet Stores
59
61
Total Directly Operated Stores
103
104
Concessions
27
29
Asia
Ralph Lauren Stores
138
118
Outlet Stores
93
94
Total Directly Operated Stores
231
212
Concessions
671
692
Global Directly
Operated Stores and Concessions
Ralph Lauren Stores
232
209
Outlet Stores
332
344
Total Directly Operated Stores
564
553
Concessions
699
722
Global Licensed
Stores
Total Licensed Stores
195
182
RALPH LAUREN
CORPORATION
RECONCILIATION OF NON-U.S.
GAAP FINANCIAL MEASURES
(Unaudited)
Three Months Ended
March 30, 2024
As Reported
Total
Adjustments(a)(b)
As Adjusted
(Reported $)
Foreign Currency
Impact
As Adjusted
(Constant $)
(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:
North America
$
667.7
$
—
$
667.7
$
(0.1
)
$
667.6
Europe
469.2
—
469.2
(6.1
)
463.1
Asia
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:
North America
$
113.5
$
—
$
113.5
Operating margin
17.0
%
17.0
%
Europe
111.9
(0.1
)
111.8
Operating margin
23.9
%
23.9
%
Asia
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
RALPH LAUREN
CORPORATION
RECONCILIATION OF NON-U.S.
GAAP FINANCIAL MEASURES (Continued)
(Unaudited)
Twelve Months Ended
March 30, 2024
As Reported
Total
Adjustments(a)(c)
As Adjusted
(Reported $)
Foreign Currency
Impact
As Adjusted
(Constant $)
(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:
North America
$
2,950.5
$
—
$
2,950.5
$
2.2
$
2,952.7
Europe
1,968.0
—
1,968.0
(69.6
)
1,898.4
Asia
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:
North America
$
553.6
$
(4.7
)
$
548.9
Operating margin
18.8
%
18.6
%
Europe
464.9
(0.3
)
464.6
Operating margin
23.6
%
23.6
%
Asia
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
RALPH LAUREN
CORPORATION
RECONCILIATION OF NON-U.S.
GAAP FINANCIAL MEASURES (Continued)
(Unaudited)
Three Months Ended
April 1, 2023
As Reported
Total
Adjustments(a)(d)
As Adjusted
(Reported $)
(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:
North America
$
655.6
$
—
$
655.6
Europe
460.8
—
460.8
Asia
390.0
—
390.0
Other non-reportable segments
34.4
—
34.4
Total revenue
$
1,540.8
$
—
$
1,540.8
OPERATING INCOME:
North America
$
68.4
$
11.7
$
80.1
Operating margin
10.4
%
12.2
%
Europe
89.1
0.3
89.4
Operating margin
19.3
%
19.4
%
Asia
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
RALPH LAUREN
CORPORATION
RECONCILIATION OF NON-U.S.
GAAP FINANCIAL MEASURES (Continued)
(Unaudited)
Twelve Months Ended
April 1, 2023
As Reported
Total
Adjustments(a)(e)
As Adjusted
(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:
North America
$
3,020.5
$
—
$
3,020.5
Europe
1,839.2
—
1,839.2
Asia
1,426.7
—
1,426.7
Other non-reportable segments
157.2
—
157.2
Total revenue
$
6,443.6
$
—
$
6,443.6
OPERATING INCOME:
North America
$
543.2
$
21.9
$
565.1
Operating margin
18.0
%
18.7
%
Europe
406.5
0.8
407.3
Operating margin
22.1
%
22.1
%
Asia
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
RALPH LAUREN CORPORATION FOOTNOTES TO
RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES
- 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 from Regent,
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 to
Russia-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 the European 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 in U.S. customs shipment
reviews and approvals and the COVID-19 pandemic; and (vi) benefit
of $0.5 million primarily related to Russia-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 the European 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 the Russia-Ukraine war and delays in U.S.
customs shipment reviews and approvals; and (vi) expense of $0.3
million related to Russia-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 the Russia-Ukraine war and delays in U.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 to Russia-related bad debt reserve
adjustments.
NON-U.S. GAAP FINANCIAL MEASURES
Because Ralph Lauren Corporation is a global company, the
comparability of its operating results reported in U.S. Dollars is
affected by foreign currency exchange rate fluctuations because the
underlying currencies in which it transacts change in value over
time compared to the U.S. Dollar. Such fluctuations can have a
significant effect on the Company's reported results. As such, in
addition to financial measures prepared in accordance with
accounting principles generally accepted in the U.S. ("U.S. GAAP"),
the Company's discussions often contain references to constant
currency measures, which are calculated by translating current-year
and prior-year reported amounts into comparable amounts using a
single foreign exchange rate for each currency. The Company
presents constant currency financial information, which is a
non-U.S. GAAP financial measure, as a supplement to its reported
operating results. The Company uses constant currency information
to provide a framework for assessing how its businesses performed
excluding the effects of foreign currency exchange rate
fluctuations. Management believes this information is useful to
investors for facilitating comparisons of operating results and
better identifying trends in the Company's businesses. The constant
currency performance measures should be viewed in addition to, and
not in lieu of or superior to, the Company's operating performance
measures calculated in accordance with U.S. GAAP.
This earnings release also includes certain other non-U.S. GAAP
financial measures relating to the impact of charges and other
items as described herein. The Company uses non-U.S. GAAP financial
measures, among other things, to evaluate its operating performance
and to better represent the manner in which it conducts and views
its business. The Company believes that excluding items that are
not comparable from period to period helps investors and others
compare operating performance between two periods. While the
Company considers non-U.S. GAAP measures useful in analyzing its
results, they are not intended to replace, nor act as a substitute
for, any presentation included in the consolidated financial
statements prepared in conformity with U.S. GAAP, and may be
different from non-U.S. GAAP measures reported by other
companies.
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-U.S. GAAP financial measures above. The income tax benefit
(provision) has been adjusted for the tax-related effects of these
charges, which were calculated using the respective statutory tax
rates for each applicable jurisdiction. The income tax benefit
(provision) has also been adjusted for certain other one-time
income tax events and other adjustments, as described in the
footnotes to the non-U.S. GAAP financial measures above. Included
in this earnings release are reconciliations between the non-U.S.
GAAP financial measures and the most directly comparable U.S. GAAP
measures before and after these adjustments.
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-U.S. GAAP
financial measures to U.S. GAAP as it is not known at this time if
and when any such charges may be incurred in the future.
Accordingly, a reconciliation of the Company's non-U.S. GAAP based
financial measure guidance to the most directly comparable U.S.
GAAP measures cannot be provided at this time given the uncertain
nature of any such potential charges that may be incurred in future
periods.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240522081068/en/
Investor Relations: Corinna Van der Ghinst ir@ralphlauren.com Or
Corporate Communications rl-press@ralphlauren.com
Ralph Lauren (NYSE:RL)
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Ralph Lauren (NYSE:RL)
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