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RL · Ralph Lauren

27 filings

10-K

RL 10-K Annual Reports

Ralph Lauren - 27 annual reports

Filing record · 2016–202610-K1110-Q328-K93

2026
Ralph Lauren Annual Report, Year Ended Mar 28, 2026
Ralph Lauren Corporation reported Fiscal 2026 (52 weeks ended March 28, 2026) net revenues of $8.115 billion, up 14.6% on a reported basis and 11.8% on a constant currency basis, with growth across all reportable segments. Net income rose to $941.1 million from $742.9 million, and diluted EPS was $15.11 versus $11.61 a year earlier. Gross profit as a percentage of net revenues increased to 69.9% from 68.6%, and SG&A as a percentage of net revenues fell to 53.9% from 54.6%, while restructuring and other charges rose to $118.1 million from $57.8 million, largely tied to the Next Generation Transformation project. The balance sheet remained solid, with cash, cash equivalents and short-term investments of $2.065 billion against total debt of $1.239 billion, leaving a net cash and short-term investments position of $826.1 million (down from $940.4 million). Operating cash flow was $1.154 billion, while capital expenditures were $408.1 million, including strategic real estate purchases. The company returned $623.8 million through Class A share repurchases and withholdings and paid $216.5 million in dividends. In May 2026 the Board approved a quarterly dividend increase from $0.9125 to $1.00 per share, and $1.352 billion remained available under the repurchase program at fiscal year-end. The filing also highlights risks including tariff changes following the Supreme Court's February 2026 invalidation of IEEPA tariffs, with potential refunds that are not assured, as well as macroeconomic pressures, promotional retail conditions, and customer concentration: the three largest wholesale customers accounted for approximately 11% of net revenues. The Lauren family controls approximately 85% of voting power, and the company reported an effective tax rate of 20.1%.
May 21, 2026
2025
Ralph Lauren Annual Report, Year Ended Mar 29, 2025
Ralph Lauren Corporation's Fiscal 2025 (ended March 29, 2025) 10-K shows net revenues of $7.079 billion, up 6.8% on a reported basis and 7.7% on a constant currency basis from $6.631 billion in Fiscal 2024. Operating income rose $175.7 million, or 23.2%, to $932.1 million, and the operating margin improved 180 basis points to 13.2%. Net income increased $96.6 million to $742.9 million, and diluted EPS rose to $11.61 from $9.71. Gross profit as a percentage of net revenues increased 180 basis points to 68.6%, driven mainly by geographic and channel mix, AUR growth, and lower cotton costs, partly offset by higher SG&A as a percentage of revenue, which rose 30 basis points to 54.6%. The balance sheet and cash flow position strengthened. Net cash and short-term investments were $940.4 million at year-end, up from $642.7 million. Operating cash flow was $1.235 billion, versus $1.070 billion the prior year. The company repurchased $480.9 million of stock including tax withholdings, paid $201.1 million in dividends, and spent $216.2 million on capital expenditures. Total debt was about $1.1 billion, and the company had $805 million of remaining credit facility availability. On May 15, 2025, the board approved an additional $1.500 billion share repurchase authorization and raised the quarterly dividend from $0.825 to $0.9125 per share. The filing also identifies material risks. These include new U.S. tariffs and possible retaliatory measures, which the company says could significantly increase product costs given that about 96% of its products are produced outside the U.S. Other risks include consumer demand sensitivity, wholesale customer concentration (three largest customers at about 12% of revenue), and the multi-year Next Generation Transformation project, which carried other charges of $25.2 million in Fiscal 2025. The Lauren family controls about 85% of the voting power.
May 22, 2025
2024
Ralph Lauren Annual Report, Year Ended Mar 30, 2024
Ralph Lauren Corporation's 10-K for fiscal 2024 (year ended March 30, 2024) reports net revenues of $6.631 billion, up 2.9% on a reported basis and 2.7% on a constant currency basis, with growth led by international businesses. Net income rose to $646.3 million from $522.7 million, and diluted EPS increased to $9.71 from $7.58. Gross profit as a percentage of net revenues improved 220 basis points to 66.8%, driven by lower freight costs, favorable geographic and channel mix, and higher average unit retail. SG&A rose to 54.3% of net revenues, and operating income reached $756.4 million, or 11.4% of net revenues. The company ended the year with a net cash and short-term investments position of $642.7 million, up from $427.2 million. Operating cash flow was $1.070 billion, which funded $449.7 million in share repurchases (including tax withholdings), $194.6 million in dividends, and $164.8 million in capital expenditures. Total debt was about $1.1 billion, consisting of unsecured senior notes, and roughly $807 million of credit and overdraft facilities remained available. The Lauren family held approximately 84% of voting power as of March 30, 2024. The filing also discloses a leadership change: Jane Nielsen stepped down as Chief Financial Officer effective May 23, 2024, remaining Chief Operating Officer until March 29, 2025, and Justin Picicci was appointed CFO. The board also approved an increase in the quarterly dividend from $0.75 to $0.825 per share. The company continues its Next Generation Transformation project, a multi-year global initiative to support its direct-to-consumer strategy.
May 23, 2024
2023
Ralph Lauren Annual Report, Year Ended Apr 1, 2023
Ralph Lauren Corporation's 10-K for fiscal 2023 (year ended April 1, 2023) reports net revenues of $6.444 billion, up 3.6% on a reported basis and 9.4% on a constant currency basis, with growth across all reportable segments. Net income declined to $522.7 million from $600.1 million, and diluted EPS fell to $7.58 from $8.07. Gross profit as a percentage of net revenues decreased 210 basis points to 64.6%, driven by inflationary cost pressures, unfavorable foreign currency effects and higher non-routine inventory charges, partially offset by higher pricing. Operating income fell 11.8% to $704.2 million, and operating margin declined 190 basis points to 10.9%. Cash generation and capital returns were a major focus. Operating cash flow was $411.0 million, down from $715.9 million, mainly on unfavorable working capital changes. The company used cash for $488.6 million of Class A share repurchases (including tax withholdings), $217.5 million of capital expenditures and $198.3 million of dividends. Net cash and short-term investments fell to $427.2 million from $962.1 million, and the remaining repurchase authorization was approximately $1.175 billion. Total long-term debt was $1,138.5 million, and the company had no borrowings under its $500 million Global Credit Facility as of April 1, 2023. The filing describes a company that remains controlled by the Lauren family, which held approximately 86% of voting power, and that is continuing its growth strategy with international expansion, particularly in Asia, where comparable store sales rose 17%. The company also reports completing the Fiscal 2021 Strategic Realignment Plan with cumulative pre-tax charges of $281.8 million and expected gross annualized savings of approximately $200 million. Fiscal 2024 capital expenditures are expected to be $275 million to $300 million.
May 25, 2023
2022
Ralph Lauren Annual Report, Year Ended Apr 2, 2022
Ralph Lauren Corporation's Form 10-K for the fiscal year ended April 2, 2022 (Fiscal 2022, a 53-week year) reports a sharp recovery from the COVID-19 disruptions of Fiscal 2021. Net revenues rose 41.3% to $6.219 billion, and net income was $600.1 million, or $8.07 per diluted share, compared with a net loss of $121.1 million in Fiscal 2021. Operating income reached $798.4 million, or 12.8% of net revenues, up from an operating loss of $43.6 million. Gross margin improved to 66.7% from 65.0%, and SG&A fell to 53.2% of net revenues from 60.0%. Growth was broad across North America (up 49.0% to $2.968 billion), Europe (up 52.7% to $1.781 billion) and Asia (up 25.2% to $1.287 billion), helped by fewer store closures, stronger digital commerce and the 53rd week. Cash generation and capital returns strengthened. Operating cash flow was $715.9 million, against $380.9 million a year earlier. The company repurchased $450.5 million of Class A stock during the year, paid $150.0 million in dividends, and had $1.629 billion of repurchase authorization remaining at year-end. The dividend was reinstated at $0.6875 per quarter and then raised to $0.75 in May 2022. Net cash and short-term investments were $962.1 million at year-end, down from $1.144 billion, and total debt was $1.636 billion. Equity was $2.536 billion. Investors should note the continuing risks the filing describes: exposure to COVID-19 variants, Russia-Ukraine war effects, supply chain and freight costs, about 97% of products made outside the U.S., and a Lauren family that controls roughly 85% of the voting power. The filing also describes a Fiscal 2021 Strategic Realignment Plan, with total expected charges of up to $300 million and expected annualized pre-tax savings of about $200 million.
May 24, 2022
2021
Ralph Lauren Annual Report, Year Ended Mar 27, 2021
Ralph Lauren Corporation reported a difficult Fiscal 2021 (fiscal year ended March 27, 2021) as COVID-19 business disruptions drove net revenues down 28.6% to $4.401 billion from $6.160 billion. The company posted a net loss of $121.1 million, or $1.65 per diluted share, compared with net income of $384.3 million, or $4.98 per diluted share, in Fiscal 2020. Gross profit as a percentage of net revenues rose to 65.0% from 59.3%, but SG&A expenses rose to 60.0% of net revenues from 52.6%, producing an operating loss of $43.6 million. Restructuring and other charges of $170.5 million and impairment charges of $96.0 million weighed on results. Operating cash flow fell to $380.9 million from $754.6 million, and capital expenditures were $107.8 million. The balance sheet remained liquid. Cash and cash equivalents were $2.579 billion, and the company reported a net cash and investments position of $1.144 billion, up from $945.3 million. Total debt was $1.633 billion after the company issued $1.250 billion of senior notes in June 2020. The company temporarily suspended its quarterly dividend and share repurchases during Fiscal 2021, and on May 19, 2021 its Board approved reinstating the quarterly dividend at $0.6875 per share. The Fiscal 2021 Strategic Realignment Plan carries estimated total pre-tax charges of $300 million to $350 million, of which $236.8 million was recorded in Fiscal 2021, with expected gross annualized pre-tax savings of $200 million to $240 million. The company also announced on May 13, 2021 an agreement to sell Club Monaco to Regent, L.P. The Lauren family controls about 84% of voting power, and the company's three largest wholesale customers accounted for approximately 14% of total net revenues. Management described the outlook as highly uncertain given the continuing COVID-19 pandemic, and it expects Fiscal 2022 capital expenditures of $250 million to $275 million.
May 20, 2021
2020
Ralph Lauren Annual Report, Year Ended Mar 28, 2020
Ralph Lauren Corporation's Fiscal 2020 (ended March 28, 2020) was sharply affected by COVID-19 and Hong Kong protest disruptions. Net revenues declined 2.4% to $6.160 billion (down 1.2% on a constant currency basis), while net income fell 10.8% to $384.3 million and diluted EPS was $4.98, versus $5.27 in Fiscal 2019. Operating income dropped 43.6% to $317.0 million, and operating margin fell to 5.1% from 8.9%. Gross margin declined 230 basis points to 59.3%, driven mainly by $157.3 million of COVID-19-related non-routine inventory charges, and SG&A rose to 52.6% of revenues, including $56.4 million of COVID-19-related bad debt expense. Results also included a one-time $122.9 million Swiss Tax Act benefit, which reduced the effective tax rate by 3,760 basis points and resulted in a negative 17.7% effective rate for the year. Liquidity was strengthened defensively. The company drew down $475 million on its Global Credit Facility, entered into a new $500 million 364-day facility in May 2020, suspended its share repurchase program and quarterly dividend, and temporarily reduced executive base pay and furloughed or reduced hours for a significant portion of employees. Net cash and investments fell to $945.3 million from $1.343 billion, while cash and cash equivalents rose to $1.620 billion. Total debt was $1.171 billion, and operating cash flow was $754.6 million. Capital expenditures were $270.3 million. The company also amended its Global Credit Facility in May 2020, waiving leverage ratio requirements through the quarter ending September 30, 2021, and imposing a $750 million minimum liquidity requirement and restrictions on shareholder distributions until a specified termination date. The filing also highlights ongoing concentration and governance considerations. Mr. Ralph Lauren and the Lauren family held approximately 84% of voting power. Three largest wholesale customers represented about 18% of Fiscal 2020 net revenues, and the wholesale backlog was $1.1 billion, with approximately 45% subsequently cancelled in the first quarter of Fiscal 2021. Management stated it cannot predict the duration or extent of the COVID-19 impact.
May 27, 2020
2019
Ralph Lauren Annual Report, Year Ended Mar 30, 2019
Ralph Lauren Corporation's Form 10-K for the fiscal year ended March 30, 2019 reports net revenues of $6.313 billion, up 2.1% on a reported basis and 2.8% on a constant currency basis, with the increase driven by international businesses. Gross profit as a percentage of net revenues rose 90 basis points to 61.6%, and operating income increased $63.6 million, or 12.8%, to $561.8 million. Net income rose to $430.9 million, or $5.27 per diluted share, from $162.8 million, aided by a $174.8 million decrease in the income tax provision, mainly because TCJA-related charges were lower than in the prior year ($27.6 million in Fiscal 2019 versus $221.4 million in Fiscal 2018). The company reported restructuring and other charges, impairment of assets, and certain other charges totaling $163.1 million in Fiscal 2019, which reduced net income by $129.0 million, or $1.58 per diluted share. The Fiscal 2019 Restructuring Plan is expected to produce gross annualized expense savings of approximately $60 million to $80 million, with total estimated charges of $125 million to $150 million. The Way Forward Plan is now complete, with no further charges expected under it. Net cash and investments declined to $1.343 billion from $1.494 billion, as cash from operations of $783.8 million was outweighed by $502.6 million of share repurchases, $197.7 million of capital expenditures and $190.7 million of dividends. The Lauren family held approximately 83% of the voting power as of March 30, 2019, and Mr. Ralph Lauren serves as Executive Chairman and Chief Creative Officer. The company also disclosed that the Board approved a further $600 million expansion of the share repurchase program and a quarterly dividend increase to $0.6875 per share on May 13, 2019.
May 16, 2019
2018
Ralph Lauren Annual Report, Year Ended Mar 31, 2018
Ralph Lauren Corporation's annual report for Fiscal 2018 (fiscal year ended March 31, 2018) shows net revenues of $6.182 billion, down 7.1% on a reported basis (8.4% constant currency), from $6.653 billion in Fiscal 2017. The company returned to profitability with net income of $162.8 million, or $1.97 per diluted share, compared with a net loss of $99.3 million in Fiscal 2017. Operating income rose to $498.2 million from an operating loss of $92.3 million, with gross margin increasing to 60.7% from 54.9%, largely because restructuring-related inventory charges fell and promotional activity was reduced. Results were offset by $221.4 million of net TCJA enactment-related charges within the income tax provision, which lowered diluted EPS by $2.68 and drove the effective tax rate to 66.7%. The company's balance sheet strengthened, with a net cash and investments position of $1.494 billion at year-end versus $786.2 million a year earlier. Operating cash flow was $975.1 million, capital expenditures were $161.6 million, and dividends paid were $162.4 million. The company also repurchased no Class A shares under its program during the fourth quarter. Management's ongoing Way Forward Plan, which has cumulative charges of $669.2 million to date and total estimated charges of approximately $770 million, continues to reshape distribution, including reduced wholesale doors (12,226 at March 31, 2018, versus 13,066 a year earlier) and store closures, while expanding international and digital presence. Investors should note the concentration of control: the Lauren family held approximately 82% of the voting power as of March 31, 2018, and the three largest wholesale customers, led by Macy's at about 8% of revenues, accounted for roughly 19% of total net revenues. The company also disclosed a pending customs audit matter and expects to pay the one-time mandatory transition tax of $147.8 million net over an eight-year period.
May 23, 2018
2017
Ralph Lauren Annual Report, Year Ended Apr 1, 2017
Ralph Lauren Corporation's Fiscal 2017 (ended April 1, 2017) was a year of significant losses driven by its Way Forward restructuring plan. Net revenues declined 10.2% to $6.653 billion from $7.405 billion, and the company reported a net loss of $99.3 million, or $1.20 per diluted share, compared with net income of $396.4 million, or $4.62 per diluted share, in Fiscal 2016. Operating results were hit by restructuring-related charges, impairment of assets, and certain other charges totaling $770.3 million, which reduced net income by $592.1 million after tax, or $7.10 per diluted share. Gross profit as a percentage of net revenues fell 160 basis points to 54.9%, and SG&A rose to 47.3% of net revenues. The Way Forward Plan aims to refocus on core brands, shorten supply chain lead times, rightsize the cost structure, and reduce the number of store and wholesale doors. The company expects gross annualized expense savings of approximately $180 million to $220 million from the initial actions, plus about $140 million from the additional March 2017 actions. Total estimated plan charges are approximately $770 million, of which about $450 million are cash-related. Leadership is also changing: Stefan Larsson departed as CEO effective May 1, 2017, and Patrice Louvet was announced as the new President and CEO, effective July 10, 2017 or a mutually agreed date. Balance sheet strength remained intact. The company ended the year with $1.353 billion in cash, cash equivalents, and short-term investments, and a net cash and investments position of $786.2 million. Operating cash flow was $952.3 million, capital expenditures were $284.0 million, and dividends paid were $164.8 million. Management stated it does not currently expect to repurchase shares under the Class A repurchase program during Fiscal 2018, citing uncertainty around U.S. tax policy. The Lauren family held approximately 83% of voting power as of April 1, 2017.
May 18, 2017
2016
Ralph Lauren Annual Report, Year Ended Apr 2, 2016
Ralph Lauren Corporation's Form 10-K for the fiscal year ended April 2, 2016 (Fiscal 2016, a 53-week year) reports net revenues of $7.405 billion, down 2.8% on a reported basis from $7.620 billion, and up 0.8% on a constant currency basis. Net income fell to $396 million from $702 million, and diluted EPS fell to $4.62 from $7.88. The decline was driven by $142 million of Global Reorganization Plan charges, $48 million of other charges (mainly a pending customs audit and litigation settlements), $22 million of non-cash impairments on underperforming stores, and unfavorable foreign currency effects. Operating income fell 43.8% to $582 million, and operating margin declined to 7.9% from 13.6%. Management expects the Global Reorganization Plan to reduce annual operating expenses by about $125 million. The company reports segment results of Wholesale at 45% of Fiscal 2016 net revenues, Retail at 53%, and Licensing at 2%. Retail comparable store sales declined about 7% on a reported basis, and comparable store sales excluding e-commerce declined about 8% to 9% on a reported basis. The company generated $1.007 billion of operating cash flow, spent $418 million on capital expenditures, paid $170 million in dividends, and repurchased $500 million of stock including tax withholdings. Net cash and investments were $559 million at year-end, down from $620 million. Mr. Ralph Lauren controls approximately 82% of the voting power. Management's outlook notes that consumer retail traffic remains weak, that foreign exchange headwinds are expected to continue, and that operating margin pressure from growth investments will persist in the near term. The company also plans to continue its strategic growth plan for Fiscal 2017 and beyond, which may result in additional restructuring charges. The Board approved an expansion of the share repurchase program by up to $200 million on May 11, 2016.
May 19, 2016
2015
Ralph Lauren Annual Report, Year Ended Mar 28, 2015
Ralph Lauren Corporation's Form 10-K for the fiscal year ended March 28, 2015 reports net revenues of $7.620 billion, up 2.3% on a reported basis and 4.0% on a constant currency basis, while net income declined 9.5% to $702 million and diluted EPS fell to $7.88 from $8.43. Operating income decreased 8.4% to $1.035 billion, and operating margin contracted 160 basis points to 13.6%, driven by a 40 basis point gross margin decline to 57.5%, SG&A rising to 43.3% of revenues from 42.2%, and foreign currency losses of $26 million. Retail (52% of revenues) grew 4.2% while Wholesale (46%) was essentially flat at 0.3%, and Retail operating margin fell 180 basis points to 13.3%. On May 12, 2015, the Board approved a Global Reorganization Plan to move to a global brand-based structure, reduce annual operating expenses by about $100 million, and absorb estimated charges of $70 million to $100 million, mostly in Fiscal 2016. The Board also expanded the share repurchase program by $500 million and the quarterly dividend was raised to $0.50 per share in February 2015. Cash flow from operations was $894 million, capital expenditures were $391 million, and the company ended the year with a net cash and investments position of $620 million, versus $989 million a year earlier, after commercial paper borrowings of $234 million. Risk factors highlighted by the filing include dependence on Mr. Ralph Lauren, who holds about 81% of voting power; currency exposure, with 37% of revenues earned outside the U.S.; concentration among wholesale customers, where Macy's accounted for about 12% of total net revenues; and a pending Wathne litigation claim of approximately $98 million, which management does not expect to have a material adverse effect. The filing also discloses a customs audit in which the authority asserted up to about $46 million in incremental duty and non-creditable VAT.
May 15, 2015
2014
Ralph Lauren Annual Report, Year Ended Mar 29, 2014
Ralph Lauren Corporation's Annual Report on Form 10-K for Fiscal 2014 (fiscal year ended March 29, 2014), dated May 15, 2014, reports net revenues of $7.450 billion, up 7.3% from $6.945 billion in Fiscal 2013, with net income of $776 million and diluted EPS of $8.43, compared with $750 million and $8.00 a year earlier. Growth was driven by the Wholesale segment in the Americas, including incremental revenue from the previously licensed Chaps Menswear Business, and by Retail, where non-comparable store sales rose 40% on a constant currency basis. Gross margin declined 190 basis points to 57.9%, mainly due to the inclusion of the Chaps business and unfavorable foreign currency, while SG&A improved to 42.2% of revenues from 42.8%. Operating income was essentially flat at $1.130 billion, and the effective tax rate fell to 29.2% from 31.1%. The balance sheet remained strong, with cash and cash equivalents of $797 million, short-term investments of $488 million, and long-term debt of $300 million from the 2.125% Senior Notes due 2018. Net cash and investments declined to $987 million from $1.113 billion, as operating cash flow of $907 million was offset by $390 million in capital expenditures, $558 million in Class A stock repurchases, and $149 million in dividends. The quarterly dividend was raised to $0.45 per share in November 2013, and about $580 million remained under the repurchase program. The filing also highlights concentration risk: the three largest wholesale customers accounted for about 25% of total net revenues, and Macy's alone for about 12%. The Lauren family controls roughly 81% of the voting power, and Roger N. Farah announced his resignation as Executive Vice Chairman effective May 31, 2014.
May 15, 2014
2013
Ralph Lauren Annual Report, Year Ended Mar 30, 2013
Ralph Lauren Corporation's Form 10-K for the 52-week fiscal year ended March 30, 2013 (Fiscal 2013) reports net revenues of $6.945 billion, up 1.2% from $6.860 billion in Fiscal 2012, with net income of $750.0 million (up 10.1% from $681.0 million) and diluted EPS of $8.00 versus $7.13. Growth came mainly from Retail, where revenues rose $192.3 million (5.6%) to $3.625 billion, while Wholesale fell $108.2 million (3.3%) to $3.138 billion on weakness in Europe and Japan. Gross margin improved 150 basis points to 59.8%, and operating income rose 8.4% to $1.127 billion. Results absorbed $18.5 million of pretax charges tied to the Rugby wind-down, which reduced net income by $12.0 million. The company ended the year with $973.7 million of cash and cash equivalents and a net cash and investments position of $1.113 billion, generated $1.019 billion of operating cash flow, and returned capital through $547.3 million of stock repurchases and $127.8 million of dividends paid. The filing highlights management's view that the global economy remains challenging, with the European debt crisis weighing on European wholesale and some retail comparable store sales in Japan and Korea declining. Management expects these conditions to continue to affect sales and operating margin in Fiscal 2014. Key forward items include the approximately $18 million Chaps menswear license acquisition completed in April 2013, the planned transition of the Australia and New Zealand licensed business to wholly-owned operation in June 2013, and fiscal 2014 capital expenditure guidance of $350 million to $450 million. The Lauren family controls about 83% of voting power, and three key wholesale customers, led by Macy's at about 12% of total net revenues, account for approximately 20% of total net revenues.
May 23, 2013
2012
Ralph Lauren Annual Report, Year Ended Mar 31, 2012
Ralph Lauren Corporation (filed as Polo Ralph Lauren Corporation's successor; name changed to Ralph Lauren Corporation effective August 15, 2011) reported fiscal 2012 (52 weeks ended March 31, 2012) net revenues of $6.860 billion, up 21.2% from $5.660 billion in Fiscal 2011, with net income attributable to RLC of $681.0 million and diluted EPS of $7.13, up from $5.75. Growth was driven mainly by the Retail segment, whose revenues rose 26.9% to $3.432 billion, and by Wholesale, which rose 16.9% to $3.246 billion. Gross margin declined 30 basis points to 58.3% due to substantial sourcing cost increases, partly offset by targeted pricing actions and a more favorable channel and geographic mix. Operating income rose 23.0% to $1.039 billion, with operating margin up 30 basis points to 15.2%. The balance sheet remained strong. Cash and cash equivalents were $671.6 million, and net cash and investments were $1.013 billion, up from $838.6 million. Operating cash flow was $885.3 million, versus $688.7 million in the prior year. During the year the company used $419.4 million to repurchase shares, spent $272.2 million on capital expenditures, and paid $74.3 million in dividends. Management noted that softness in certain European businesses and the continuing economic uncertainty in Europe could weigh on sales and margin growth in Fiscal 2013. On May 21, 2012, the Board raised the quarterly dividend from $0.20 to $0.40 per share. The Lauren family controls about 73% of the voting power, and the company faces a pending Wathne litigation, which management does not expect to have a material adverse effect.
May 24, 2012
2011
Ralph Lauren Annual Report, Year Ended Apr 2, 2011
Polo Ralph Lauren Corporation reported Fiscal 2011 (ended April 2, 2011) net revenues of $5.660 billion, up 13.7% from $4.979 billion in Fiscal 2010, with net income attributable to PRLC of $567.6 million and diluted EPS of $5.75, compared with $4.73 in the prior year. Operating income rose 19.6% to $845.1 million, and operating margin improved to 14.9% from 14.2%, driven mainly by a 40 basis point gain in gross profit margin to 58.6% and a 310 basis point improvement in Retail operating margin. Retail was the fastest-growing segment, with net revenues up 19.5% to $2.704 billion, while Wholesale rose 9.7% to $2.778 billion and Licensing fell 2.7% to $178.5 million. The company generated $688.7 million of operating cash flow, down from $906.5 million, mainly due to working capital timing and inventory build. It repurchased $594.6 million of stock, spent $255.0 million on capital expenditures, and ended the year with a net cash and investments position of $838.6 million and equity of $3.305 billion. Management flagged headwinds for Fiscal 2012, including the Japan earthquake's expected negative effect on Japanese sales and margins, a Greater China restructuring with pretax charges of approximately $10 million to $20 million, and more significant sourcing cost pressures on gross margin. The Lauren family controls about 76% of voting power, and the board raised the quarterly dividend to $0.20 per share and added $500 million to the repurchase program.
May 26, 2011
2010
Ralph Lauren Annual Report, Year Ended Apr 3, 2010
Polo Ralph Lauren Corporation, founded in 1967 by Ralph Lauren, reported fiscal 2010 (53 weeks ended April 3, 2010) net revenues of $4.979 billion, down 0.8% from $5.019 billion in fiscal 2009, as lower Wholesale revenues were largely offset by higher Retail revenues. Operating income rose 18.7% to $706.9 million, and operating margin improved to 14.2% from 11.9%, driven by a gross profit percentage increase of 380 basis points to 58.2%, lower asset impairment and restructuring charges, and the 53rd week. Net income attributable to PRLC increased 18.1% to $479.5 million, and diluted EPS rose to $4.73 from $4.01. The company ended the year with a net cash and investments position of $940.6 million, up from $443.2 million, and generated $906.5 million of operating cash flow. Cash was used for $231.0 million of share repurchases, $201.3 million of capital expenditures, the $121.0 million repurchase of €90.8 million of Euro notes, and the $25.3 million funding of the Asia-Pacific Licensed Operations Acquisition, which brought Polo-branded apparel in Asia-Pacific (excluding Japan) under direct control. Management expects macroeconomic pressures to weigh on sales and operating margins across all segments through at least Fiscal 2011, and it cites inflationary pressure on raw material and fuel costs. Investors should note the concentration of control: Ralph Lauren and entities controlled by the Lauren family own approximately 84% of the voting power, and five department-store customers accounted for approximately 45% of wholesale revenues. The company also reported a backlog of $1.160 billion, down from $1.289 billion a year earlier.
Jun 2, 2010
2009
Ralph Lauren Annual Report, Year Ended Mar 28, 2009
Polo Ralph Lauren Corporation, founded in 1967 by Ralph Lauren, reported fiscal 2009 (year ended March 28, 2009) net revenues of $5.019 billion, up 2.8% from $4.880 billion in Fiscal 2008, and net income of $406.0 million, down 3.3% from $419.8 million. Diluted EPS rose slightly to $4.01 from $3.99. Results were weighed by $79.0 million of pretax charges for asset impairments ($55.4 million) and restructuring ($23.6 million), which reduced net income by $49.7 million. Operating income fell 8.9% to $595.5 million, and operating margin declined to 11.9% from 13.4%. Wholesale revenue grew 4.7% to $2.887 billion and operating income rose 8.5%, while Retail operating income fell 47.0% to $108.2 million amid a sharp decline in comparable store sales in the second half of the year. The company's balance sheet strengthened. It ended the year with a net cash and short-term investments position of $413.5 million, versus net debt of $53.4 million a year earlier. Operating cash flow rose to $774.2 million from $695.4 million, and stockholders' equity increased to $2.735 billion. The company repurchased $169.8 million of Class A stock and spent $185.0 million on capital expenditures. Management described the contraction in consumer spending as continuing into Fiscal 2010, noted that traditional retail partners cut Fall 2009 wholesale orders by approximately 10%, and announced a restructuring plan expected to yield about $25 million in annualized pretax savings. Mr. Ralph Lauren controls approximately 86% of the voting power.
May 27, 2009
2008
Ralph Lauren Annual Report, Year Ended Mar 29, 2008
Polo Ralph Lauren Corporation, founded in 1967 by Ralph Lauren, reported Fiscal 2008 (ended March 29, 2008) net revenues of $4.880 billion, up 13.6% from $4.295 billion in Fiscal 2007, and net income of $419.8 million, or $3.99 per diluted share, compared with $400.9 million, or $3.73 per diluted share, a year earlier. Wholesale revenue rose 19.1% to $2.758 billion and Retail rose 9.7% to $1.913 billion, while Licensing declined 11.4% to $209.4 million. Operating income was essentially flat at $653.4 million, and operating margin fell to 13.4% from 15.2%, mainly reflecting purchase accounting from recent acquisitions, higher SG&A and amortization of intangibles. Net income growth was supported by a $20.1 million decline in the provision for income taxes, as the effective tax rate fell to 34.6% from 37.7%. The company's balance sheet shifted toward net debt in Fiscal 2008, with a net debt position of $127.7 million (excluding $74.3 million of short-term investments) versus net cash of $165.1 million a year earlier. The change was driven by the Japanese Business Acquisitions, which cost approximately $360 million initially, and by $475.4 million of share repurchases of 6.0 million Class A shares. Operating cash flow was $695.4 million, down from $796.1 million, largely because the prior year included roughly $180 million from the Eyewear Licensing Agreement. Capital expenditures were $217.1 million. Stockholders' equity rose to $2.390 billion. Management highlighted a more challenging U.S. macroeconomic environment and said that U.S. retail partners had reduced initial wholesale orders for fall 2008. Mr. Ralph Lauren and related entities held approximately 87% of voting power as of March 29, 2008, and the company's Credit Facility carries a $450 million revolving line that was undrawn at year end.
May 28, 2008
2007
Ralph Lauren Annual Report, Year Ended Mar 31, 2007
Polo Ralph Lauren Corporation reported fiscal 2007 (year ended March 31, 2007) net revenues of $4.295 billion, up from $3.746 billion in fiscal 2006, with net income of $400.9 million and diluted earnings per share of $3.73, compared with $308.0 million and $2.87 a year earlier. Operating income rose to $652.6 million, or 15.2% of net revenues, from $516.6 million. Growth was led by the Wholesale segment ($2.316 billion in revenue, up $373.4 million, largely from the newly acquired Polo Jeans and Footwear businesses) and the Retail segment ($1.743 billion, up $184.6 million). Licensing revenue declined to $236.3 million. Gross margin improved to 54.4% of net revenues. Stock-based compensation under FAS 123R reduced diluted EPS by $0.24. The company ended the year with a net cash position of $165.1 million, cash from operations of $796.1 million (including about $180 million of prepaid royalties from the Luxottica eyewear agreement), and stockholders' equity of $2.335 billion. It repurchased 3.5 million Class A shares for $231.3 million and has $368.3 million remaining under its repurchase program. Post year-end, the company completed the Japanese Business Acquisitions on May 29, 2007, acquiring a controlling interest in Impact 21 and the remaining 50% of Polo Ralph Lauren Japan for a total expected cost of about $340 million, plus $175 million for the RL Media minority interest. The filing notes that the Japanese transactions are not expected to contribute to profitability until Fiscal 2009, and that FIN 48 adoption could result in a cumulative charge of up to $85 million to retained earnings. Key risks disclosed include customer concentration (Federated and Dillard's represented 29% and 14% of wholesale net sales), reliance on Mr. Ralph Lauren, dependence on over 350 foreign manufacturers with more than 99% of products produced outside the U.S., currency exposure, and ongoing litigation, including the Wathne breach-of-contract suit and the Polo Trademark appeal.
May 30, 2007
2006
Ralph Lauren Annual Report, Year Ended Apr 1, 2006
Polo Ralph Lauren Corporation reported Fiscal 2006 (52 weeks ended April 1, 2006) net revenues of $3,746.3 million, up $440.9 million, or 13.3%, from $3,305.4 million in Fiscal 2005. Operating income rose $216.9 million to $516.6 million, and net income increased to $308.0 million from $190.4 million, with diluted EPS of $2.87 versus $1.83. Fiscal 2005 results had been reduced by a $100 million Jones-Related Litigation charge, which was absent in Fiscal 2006. Growth was led by the wholesale segment (revenues up 13.5% to $1,942.5 million, operating income up 32.9% to $398.3 million) and the retail segment (revenues up 15.6% to $1,558.6 million, operating income up 69.1% to $140.0 million). Licensing revenue was essentially flat at $245.2 million, and gross margin improved to 54.0% from 51.0%. The company acquired the Polo Jeans Business for about $260 million and the Footwear Business for about $112 million, and it agreed to a ten-year eyewear license with Luxottica expected to bring an approximately $200 million prepayment in January 2007. Balance sheet metrics were a net cash position of $5.3 million, with $285.7 million of cash against $280.4 million of Euro-denominated debt due November 2006. Investors should note that management concluded internal control over financial reporting was not effective as of April 1, 2006, due to a material weakness in income tax accounting, and that the company faces several pending litigation matters, including the Wathne Imports suit.
Jun 15, 2006
2005
Ralph Lauren Annual Report, Year Ended Apr 2, 2005
Polo Ralph Lauren Corporation reported net revenues of $3.31 billion for Fiscal 2005 (52 weeks ended April 2, 2005), up $655.8 million, or 24.7%, from $2.65 billion in Fiscal 2004. Growth was driven by the Lauren line's first full year, the July 2004 acquisition of RL Childrenswear, and retail expansion, partly offset by lower licensing revenue, which fell $24.1 million, or 9.0%. Net income rose to $190.4 million ($1.83 diluted EPS) from $169.2 million, and income from operations was $299.7 million after a $100.0 million reserve for the Jones Apparel Group litigation. Gross margin improved to 51.0% from 49.9%. The company disclosed a material weakness in internal control over financial reporting related to income tax accounting, and management concluded that disclosure controls were not effective. Prior-year financial statements were restated for lease accounting, and consolidation of Ralph Lauren Media. Cash and cash equivalents were $350.5 million against $291.0 million of Euro-denominated long-term debt, and cash flow from operations was $382.0 million. Looking ahead, the company agreed on May 23, 2005 to acquire the Footwear Business from Reebok International for approximately $110 million in cash, with closing anticipated in July 2005. Investors should also note customer concentration, with three department store customers representing 51.1% of wholesale net sales, and the pending Jones Court of Appeals review, in which Jones seeks $550.0 million in damages.
Jul 1, 2005
2004
Ralph Lauren Annual Report, Year Ended Apr 3, 2004
Polo Ralph Lauren Corporation reported Fiscal 2004, a 53-week year ended April 3, 2004, with net revenues of $2.65 billion, up $210.3 million or 8.6% from $2.44 billion in Fiscal 2003. Growth came mainly from retail, where net sales rose 16.8% to $1.17 billion on higher comparable store sales and store expansion, and from the introduction of the Lauren line in wholesale. Net income declined to $171.0 million from $174.2 million, and diluted EPS fell to $1.69 from $1.76. Income from operations fell 5.1% to $273.8 million, held back by lower wholesale operating income, restructuring charges of $19.6 million, the loss of Lauren and Ralph royalties from Jones Apparel Group, and start-up costs for the Lauren line. The filing states the 53rd week contributed an estimated $39.5 million of the sales increase. The most significant risk disclosed is the litigation with Jones Apparel Group, which terminated the Lauren and Ralph licenses effective December 31, 2003. Jones is seeking compensatory damages of $550.0 million, and the filing says an adverse outcome could have a material adverse effect on results and financial condition. The company intends to defend the case vigorously. Licensing concentration is also high: Jones, WestPoint Stevens and Impact 21 accounted for 17.2%, 14.7% and 11.3% of licensing revenue, and WestPoint filed for Chapter 11 in June 2003 before an amended license was approved in December 2003. The balance sheet remains solid, with cash of $343.5 million, debt of $277.3 million, and stockholders' equity of $1.42 billion. Management also disclosed a definitive agreement signed May 25, 2004 to acquire assets of its North American childrenswear licensee, RL Childrenswear Company, LLC, for $232.1 million in cash plus up to $20 million in deferred and contingent payments, with closing expected in late June 2004.
Jun 7, 2004
2003
Ralph Lauren Annual Report, Year Ended Mar 29, 2003
Polo Ralph Lauren Corporation reported net revenues of $2.44 billion for fiscal 2003 (ended March 29, 2003), up from $2.36 billion in fiscal 2002, with net income of $174.2 million, or $1.76 diluted earnings per share, compared with $172.5 million, or $1.75 per diluted share, in fiscal 2002. Net sales were $2.19 billion, with wholesale sales of $1.19 billion, retail sales of $1.00 billion and licensing revenue of $250.0 million. Income from operations was $288.4 million, and the restructuring charge was $14.4 million, tied to a strategic review of European businesses. Cash and cash equivalents rose to $343.6 million, and total debt was $349.4 million at year end. Operating cash flow was $269.0 million, and capital expenditures were $98.7 million. The most significant risk disclosed is a dispute with Jones Apparel Group. Jones failed to meet minimum sales volumes under the "Ralph" license agreements, which will terminate December 31, 2003, and Jones has indicated it will treat the "Lauren" licenses as terminated as of the same date. Jones filed a lawsuit on June 3, 2003 seeking $550.0 million in compensatory damages plus punitive damages. The company believes the suit is without merit, but states that an adverse outcome could have a material adverse effect on results and financial condition. The company expects to replace the roughly $37.4 million and $5.3 million in Lauren and Ralph royalties with income from its own Lauren and Ralph product sales beginning January 2004. Licensing concentration is also a factor, since Jones and WestPoint Stevens each accounted for 16.4% and 15.9% of licensing revenue, and WestPoint Stevens filed for bankruptcy protection in June 2003. During the year the company acquired a 50% interest in the Japanese master license and an 18% equity interest in the Japanese sublicensee for approximately $24.1 million and $47.6 million, respectively. The Board declared the company's first regular quarterly cash dividend of $0.05 per share on May 20, 2003.
Jun 19, 2003
2002
Ralph Lauren Annual Report, Year Ended Mar 30, 2002
Polo Ralph Lauren Corporation reported net revenues of $2,363,707 thousand (about $2.36 billion) for the fiscal year ended March 30, 2002, up from $2,225,774 thousand in fiscal 2001. Net sales were $2,122,333 thousand and licensing revenue was $241,374 thousand. Net income rose to $172,500 thousand, or $1.75 per diluted share, compared with $59,262 thousand, or $0.61 per diluted share, in fiscal 2001, which was burdened by a $123,554 thousand restructuring charge. Income from operations was $293,212 thousand versus $117,221 thousand a year earlier. Cash and cash equivalents increased to $238,774 thousand and total debt declined to $318,402 thousand from $383,100 thousand. Cash provided by operating activities was $293,758 thousand. The company operates three segments: wholesale, retail and licensing. Wholesale sales were $1,198,060 thousand, retail sales were $924,273 thousand, and the company operated 236 stores at year end. Licensing relationships are concentrated: Jones Apparel Group accounted for 26.9% of licensing revenue, WestPoint Stevens for 14.2%, and Seibu Department Stores for 11.6%. Three department store customers, Federated, Dillard's and May, together made up 35% of trade accounts receivable at March 30, 2002. The filing also discloses several legal matters, including a lawsuit by the United States Polo Association and Jordache seeking $50 million in compensatory damages and $50 million in punitive damages, and a Saipan-related class settlement that remains subject to court approval. The European subsidiaries' fiscal year end was changed to conform with the company's March year end, with the three-month results for the period ended December 29, 2001 recorded as an adjustment to retained earnings.
Jun 25, 2002
1999
Ralph Lauren Annual Report, Year Ended Apr 3, 1999
Polo Ralph Lauren Corporation's fiscal 1999 10-K (fiscal year ended April 3, 1999, a 53-week period) reports net revenues of $1.73 billion, up from $1.48 billion in fiscal 1998, driven by net sales of $1.51 billion and licensing revenue of $208.0 million. Net income fell to $90.6 million from $147.6 million, as the company recorded a $58.6 million pre-tax restructuring charge in the fourth quarter. Income from operations was $155.6 million after the charge, or $214.1 million excluding it, compared with $199.8 million in fiscal 1998. Retail sales grew 15.5% to $659.4 million, but comparable store sales declined 2.0% excluding the 53rd week, which management attributed to a weaker economic environment, lower tourism, and unseasonably warm fall weather. The company's balance sheet expanded, with total assets of $1.10 billion and total debt of $159.7 million at year end, including $115.5 million in direct borrowings. Capital expenditures rose to $141.7 million, largely for shop-within-shops and retail expansion, and operating cash flow declined to $38.5 million from $96.2 million, reflecting higher inventories of $376.9 million. The company repurchased 603,864 Class A shares for $16.1 million under a $100.0 million authorization, and it funded the May 1999 acquisition of Club Monaco, which had a total purchase price of approximately $52.0 million, through a new $100.0 million 1999 Credit Facility. The filing highlights concentration risk: three department store customers accounted for 58.0% of trade receivables, and four licensing partners generated about 55.0% of licensing revenue. Chairman Ralph Lauren and the Lauren family's Class B voting control remain key governance and risk factors. The filing also discloses a pending class action over outlet store advertising and potential exposure to Saipan-related lawsuits, which management does not expect to have a material adverse effect.
Jun 25, 1999
1998
Ralph Lauren Annual Report, Year Ended Mar 28, 1998
Polo Ralph Lauren Corporation's annual report on Form 10-K for the fiscal year ended March 28, 1998 shows net revenues of $1.47 billion, up from $1.18 billion in fiscal 1997 (pro forma basis for fiscal 1997 was $1.27 billion). Net sales were $1.30 billion, with wholesale net sales of $733.1 million and retail sales of $570.8 million. Licensing revenue rose to $167.1 million from $137.1 million. Income from operations was $199.8 million and net income was $147.6 million, though net income includes a $27.4 million non-recurring deferred tax benefit recorded on the Reorganization. Gross profit as a percentage of net revenues improved to 48.6% from 45.8% in fiscal 1997 (pro forma), while SG&A expenses rose to 35.0% of net revenues from 33.8%. The company completed its initial public offering on June 17, 1997, selling 11,170,000 Class A shares at $26.00 per share, with net proceeds of $268.8 million used largely to repay debt. Total debt was reduced to $337 thousand at March 28, 1998, from $140.9 million a year earlier, and the company had no direct borrowings under its $225.0 million revolving credit facility. Stockholders' equity increased to $584.3 million from $260.7 million. Cash provided by operating activities declined to $96.2 million from $203.6 million, mainly due to higher inventory levels. The board authorized a repurchase of up to $100.0 million of Class A common stock over two years beginning April 1, 1998, and the company does not intend to pay cash dividends on its common stock. The filing also discloses a purported national class action lawsuit filed in the Delaware Supreme Court in July 1997 concerning advertising and marketing practices at outlet stores, which management intends to vigorously defend. Management believes the resolution of pending matters will not have a material adverse effect on financial condition or results of operations. Principal risks noted include dependence on licensing partners, concentration of receivables among a few department store customers, and reliance on foreign manufacturers.
Jun 26, 1998