Ralph Lauren Corporation RL reported better-than-expected fourth-quarter financial results on Thursday.The luxury fashion company reported sales growth of 8% year-on-year (Y/Y) to $1.70 billion, beating the analyst consensus estimate of $1.64 billion. Adjusted EPS of $2.27 beat the consensus estimate of $2.00.Patrice Louvet, President and Chief Executive Officer, said, "As we enter Fiscal 2026, we remain on offense — with a focus on driving our multiple engines of growth across lifestyle categories, geograp ...

Luxury lifestyle products firm Ralph Lauren plans to raise prices to cover the cost of tariffs, saying the demand it is seeing from its high-end customers will support the move.“We are assessing additional pricing actions for fall 2025 and spring 2026 to mitigate the potential impact of evolving tariffs,” Ralph Lauren Chief Financial Officer Justin Pacicci said Thursday (May 22) during the company’s fourth-quarter earnings call. “This is on top of the proactive pricing we already planned for 2025 in North A ...

Ralph Lauren (RL 1.44%) reported its fiscal fourth-quarter and full-year 2025 results on May 22, with quarterly revenue growth of 8%, or 10% on a constant currency basis (exceeding the guidance range of 6% to 7%) and fiscal year revenue growth of 7% (8% in constant currency), due in part to record international performance. Adjusted operating profits grew by 24%. Management highlighted a new $1.5 billion share repurchase authorization and its recent 10% increase in the dividend, and outlined cautious but co ...

Core Insights - Ralph Lauren Corporation (RL) reported strong fourth-quarter fiscal 2025 results, with both top and bottom lines increasing year over year and exceeding the Zacks Consensus Estimate, highlighting the company's brand momentum and strategic execution [1][2] Financial Performance - Adjusted earnings per share for RL were $2.27, surpassing the consensus estimate of $2.00, and reflecting a 32.7% increase from $1.71 in the same quarter last year [2] - Net revenues grew 8% year over year to $1,697 million, exceeding the Zacks Consensus Estimate of $1,635 million, with a 10% increase on a constant-currency basis [2] - Global direct-to-consumer comparable store sales increased by 13%, supported by brand elevation and positive retail comps across all regions and channels [3] Segment Performance - North America: Revenues increased 6% year over year to $705 million, with retail channel comps rising 9% [4] - Europe: Revenues rose 12% year over year to $526 million, with retail channel comps up 18% and digital sales increasing by 25% [5] - Asia: Revenues increased 9% year over year to $432 million, with comps up 15% [6] Margins and Costs - Adjusted gross profit margin expanded by 200 basis points year over year to 68.6%, driven by favorable product mix and lower cotton costs [8] - Adjusted operating expenses rose 9% year over year to $990 million, with operating margin increasing by 160 basis points to 10.3% [9] Financial Position - As of the end of fiscal 2025, RL had cash and short-term investments of $2.1 billion, total debt of $1.1 million, and total shareholders' equity of $2.6 billion [10] - The company repurchased nearly $425 million of Class A Common Stock in fiscal 2025 and announced a new $1.5 billion share repurchase program [11] Shareholder Returns - RL returned approximately $625 million to shareholders through dividends and stock repurchases, with a 10% increase in the quarterly cash dividend to $0.9125 per share [12] Outlook - For fiscal 2026, RL anticipates low-single-digit revenue growth in constant currency, with stronger momentum expected in the first half [14] - Management expects operating margin to expand modestly, with capital expenditures projected to be 4% to 5% of revenues [16]

For the quarter ended March 2025, Ralph Lauren (RL) reported revenue of $1.7 billion, up 8.3% over the same period last year. EPS came in at $2.27, compared to $1.71 in the year-ago quarter.The reported revenue represents a surprise of +3.83% over the Zacks Consensus Estimate of $1.63 billion. With the consensus EPS estimate being $2.00, the EPS surprise was +13.50%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

Growth Strategy - The company has a long-term growth strategy for Fiscal 2023 to Fiscal 2025, focusing on brand elevation, core expansion, and winning in key cities[26]. - The company has a focus on returning the North America business to growth as part of its strategic goals[155]. Transformation Initiatives - The Next Generation Transformation Project is a multi-year initiative aimed at transitioning to a global direct-to-consumer model, with significant process improvements expected[36]. - The company has established a large-scale multi-year global project, the Next Generation Transformation project, aimed at transforming operations towards a direct-to-consumer model[121]. Financial Performance - Fiscal 2025 net revenues were approximately 57% generated outside the U.S., with North America contributing 43%, Europe 31%, and Asia 24%[57][61][62]. - The company incurred charges of $25.2 million and $5.1 million related to the NGT project during Fiscal 2025 and Fiscal 2024, respectively[37]. - Approximately 2% of Fiscal 2025 net revenues came from non-reportable segments, primarily from Ralph Lauren and Chaps branded royalty revenues[56]. Sustainability Efforts - The company emphasizes sustainability through initiatives like integrated circularity, sustainable materials, and waste management, aiming for zero waste principles[32]. - The company aims to reduce absolute greenhouse gas emissions and improve water stewardship across its operations and supply chain[32]. - The company is committed to advancing environmental sustainability in the fashion and textile industries through initiatives like the Fashion Pact[154]. Employee Well-being - The company is committed to enhancing employee well-being and fostering a culture of belonging and equity within its workforce[41]. - Starting January 2025, the company will provide free additional coverage for essential cancer screenings above national guidelines for U.S. employees[151]. - All part-time employees with one year of service will be eligible for benefits in calendar 2025, regardless of average hours worked[152]. - The company has a global wellness program, THRIVE, which includes access to physical and mental wellness support[146]. - The company is committed to competitive compensation and benefits, actively monitoring pay equity[149]. - The company aims to exceed an 80% employee survey score on "my manager creates a sense of belonging for the entire team"[141]. Product and Brand Portfolio - The company’s product portfolio includes luxury lifestyle products across five categories: apparel, footwear & accessories, home, fragrances, and hospitality[25]. - The brand portfolio includes well-known names such as Polo Ralph Lauren, Ralph Lauren Collection, and Double RL, reflecting a distinctive American lifestyle[39]. - The company’s products are designed to reflect a timeless and innovative interpretation of American style, contributing to brand strength and reputation[96]. Retail and Distribution - The retail business operates 564 retail stores and 671 concession-based shop-within-shops, totaling approximately 4.1 million and 0.7 million square feet respectively[59][62]. - During Fiscal 2025, 30 new Ralph Lauren stores were opened while 10 were closed, resulting in a total of 252 Ralph Lauren stores[60][62]. - The wholesale business sold products through over 9,400 doors worldwide, with approximately 3,000 in North America, 5,600 in Europe, and 850 in Asia[70][73]. - The company opened 6 new outlet stores and closed 26 during Fiscal 2025, resulting in a total of 312 outlet stores[63][64]. - The company’s distribution network includes multiple global facilities, ensuring efficient shipping and inventory management[115]. Digital Commerce Strategy - The digital commerce strategy includes direct sales through various websites and third-party partners, with a focus on expanding accessibility and localizing offerings[67][68]. - The company continues to invest in its digital ecosystem as a key component of its global omni-channel strategy, which includes owned and partnered channels across physical and digital platforms[87]. - Directly-operated digital commerce sites and mobile applications serve as digital flagships, enhancing consumer experience through new payment methods and improved search capabilities[88]. - The company continues to invest in Connected Retail capabilities, including features like Same-Day Delivery and Mobile Point of Sale[59]. Leadership and Management - Ralph Lauren has been the Executive Chairman and Chief Creative Officer since November 2015, and has been with the company since its founding in 1967[154]. - Patrice Louvet has served as President and CEO since July 2017, previously holding senior leadership roles at Procter & Gamble[154]. - Robert Ranftl became Chief Operating Officer in April 2025, previously leading operations in Asia Pacific and North America[155]. - Justin Picicci has been Chief Financial Officer since May 2024, overseeing internal finance functions and previously serving as CFO of North America[155]. - David Lauren, Chief Branding and Innovation Officer since April 2022, has been instrumental in growing the company's global digital commerce business[155]. - Halide Alagöz has been Chief Product Merchandising Officer since March 2025, responsible for the end-to-end product life cycle[155]. Marketing and Consumer Engagement - The company’s marketing strategies increasingly leverage digital and social media platforms to engage younger consumers and enhance brand recognition[100]. - The company collaborates with wholesale customers to deliver tailored content and leverage consumer insights for a holistic view of the consumer[89]. Market and Risk Management - The company continues to face challenges with trademark enforcement in certain parts of Asia[127]. - The company maintains a program of intensive monitoring of import restrictions and opportunities to minimize exposure to import-related risks[132]. - Market risk management strategies are discussed in the Annual Report on Form 10-K[422].

Group 1: Earnings Performance - Ralph Lauren reported quarterly earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2 per share, and up from $1.71 per share a year ago, representing an earnings surprise of 13.50% [1] - The company posted revenues of $1.7 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.83%, compared to $1.57 billion in the same quarter last year [2] - Over the last four quarters, Ralph Lauren has consistently surpassed consensus EPS estimates [2] Group 2: Stock Performance and Market Comparison - Ralph Lauren shares have increased by approximately 18.6% since the beginning of the year, while the S&P 500 has declined by 0.6% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Future Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.03 on revenues of $1.57 billion, and for the current fiscal year, it is $13.61 on revenues of $7.3 billion [7] - The trend of estimate revisions for Ralph Lauren is mixed, which could change following the recent earnings report [6] Group 4: Industry Context - The Textile - Apparel industry, to which Ralph Lauren belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Ralph Lauren's stock performance [5]

Ralph Lauren (RL) Q4 2025 Earnings Call May 22, 2025 09:00 AM ET Company Participants Corinna Van der Ghinst - SVP, Head of Investor RelationsPatrice Louvet - President & Chief Executive OfficerJustin Picicci - Chief Financial OfficerJay Sole - Managing DirectorMichael Binetti - Senior Managing DirectorDana Telsey - CEO and Chief Research OfficerJohn Kernan - Managing DirectorChris Nardone - Director, Equity ResearchTom Nikic - Managing Director, Equity Research Conference Call Participants Matt Boss - Equi ...

Ralph Lauren (RL) Q4 2025 Earnings Call May 22, 2025 09:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to the Ralph Lauren Fourth Quarter Fiscal Year twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. Instructions on how to ask a question will be given at that time. As a reminder, this conference is being recorded. I would now like to turn over the conference to our host, Ms. Karina Van ...

Financial Performance - Fourth quarter revenue increased 8% to $1.7 billion on a reported basis and 10% in constant currency, while full year revenue rose 7% to $7.1 billion[4][15]. - Net revenues for the three months ended March 29, 2025, increased to $1,697.3 million, a rise of 8.3% compared to $1,567.9 million for the same period in 2024[46]. - Gross profit for the twelve months ended March 29, 2025, reached $4,852.9 million, up from $4,431.8 million in 2024, reflecting a strong performance[46]. - Operating income for the three months ended March 29, 2025, was $155.0 million, compared to $107.8 million in the prior year, marking a significant increase[46]. - Net income for the twelve months ended March 29, 2025, was $742.9 million, an increase of 14.9% from $646.3 million in 2024[44]. - Total segment operating income for the twelve months ended March 29, 2025, was $1,745.3 million, up from $1,478.3 million in 2024, indicating robust growth across segments[46]. - Retail sales for the twelve months ended March 29, 2025, reached $4,770.1 million, up from $4,351.0 million in the previous year, reflecting a growth of 9.6%[57]. - For the three months ended March 29, 2025, net income was reported at $129.0 million, compared to $90.7 million for the same period in 2024, representing an increase of 42.2%[60]. - The adjusted net income for the twelve months ended March 29, 2025, was $788.9 million, up from $685.8 million in the previous year, reflecting a growth of 15.1%[60]. Revenue Growth by Region - North America revenue in the fourth quarter increased 6% to $705 million, with comparable store sales up 9%[11][18]. - Europe revenue in the fourth quarter increased 12% to $526 million on a reported basis, with comparable store sales up 18%[11][18]. - Asia revenue in the fourth quarter increased 9% to $432 million on a reported basis, with comparable store sales up 15%[11][18]. Shareholder Returns - The company returned a total of $625 million to shareholders through dividends and stock repurchases in Fiscal 2025, with a 10% dividend increase approved[4][24][25]. - The company declared dividends of $0.825 per share for the three months ended March 29, 2025, compared to $0.75 per share in the same period last year[46]. Future Outlook - For Fiscal 2026, the company expects revenue growth of low-single digits on a constant currency basis, reflecting caution on the global operating environment[4][27]. - Operating margin for Fiscal 2026 is expected to expand modestly, with gross margin projected to be approximately flat in constant currency[4][28]. - The full year Fiscal 2026 tax rate is expected to be in the range of 20% to 22%[30]. - Capital expenditures for Fiscal 2026 are planned to be approximately 4% to 5% of revenue[30]. Customer Acquisition and Digital Strategy - The company recruited 5.9 million new customers in direct-to-consumer channels during Fiscal 2025, supported by growth in social media followers[4][8]. - The company is focused on enhancing its digital footprint and capabilities to expand its direct-to-consumer presence[36]. - The company is undergoing a Next Generation Transformation project aimed at significantly transforming its operations towards a global direct-to-consumer model[62]. Financial Position - Total assets increased to $7,047.3 million in March 2025 from $6,602.6 million in March 2024, representing a growth of approximately 6.7%[39]. - Current liabilities rose to $2,133.7 million in March 2025 from $1,467.2 million in March 2024, an increase of approximately 45.4%[39]. - Retained earnings increased to $7,590.1 million in March 2025 from $7,051.6 million in March 2024, reflecting a growth of approximately 7.6%[39]. - The company reported cash and cash equivalents of $1,922.5 million as of March 2025, up from $1,662.2 million in March 2024, a rise of approximately 15.6%[39]. - The company’s total liabilities increased to $4,458.8 million in March 2025 from $4,152.3 million in March 2024, an increase of approximately 7.4%[39]. - The company’s net cash and short-term investments amounted to $940.4 million in March 2025, compared to $642.7 million in March 2024, a growth of approximately 46.4%[39]. - The company’s total equity increased to $2,588.5 million in March 2025 from $2,450.3 million in March 2024, reflecting a growth of approximately 5.6%[39]. Operating Metrics - Fourth quarter adjusted gross margin was 68.6%, 200 basis points above the prior year, driven by favorable geographic, channel, and product mix[9][16]. - Digital commerce sales in North America increased by 8% for the three months ended March 29, 2025, while brick-and-mortar sales rose by 9%[48]. - In Europe, digital commerce sales surged by 25% for the three months ended March 29, 2025, with brick-and-mortar sales increasing by 16%[48]. - The gross profit margin for the three months ended March 29, 2025, was 68.6%, compared to 66.6% for the same period in 2024[57]. - The adjusted operating margin for the twelve months ended March 29, 2025, was 14.0%, compared to 12.5% for the same period in 2024[59]. Tax and Earnings Per Share - The effective tax rate for the three months ended March 29, 2025, was 20.5%, compared to 18.7% for the same period in 2024[60]. - The diluted earnings per share (EPS) for the three months ended March 29, 2025, was $2.03, an increase from $1.38 in the same period of 2024, marking a growth of 47.0%[60]. - The adjusted effective tax rate for the twelve months ended March 29, 2025, was 21.8%, compared to 19.1% for the same period in 2024[60]. Store Operations - The total number of directly operated stores globally remained stable at 564 as of March 29, 2025, compared to the same number in 2024[54]. - The company opened 20 new Ralph Lauren stores in Asia, increasing the total to 154 stores as of March 29, 2025, compared to 138 stores in 2024[54]. - Licensing revenues for the twelve months ended March 29, 2025, totaled $144.6 million, consistent with $146.3 million in the previous year[57]. Impairment Charges - The company recorded impairment charges related to the write-down of long-lived assets in connection with certain North America wholesale shops[62].