01—Abstract
Summary
Summary of the 10-K filed May 23, 2024. Cited figures are marked; the original filing is the authoritative source.
Ralph Lauren Corporation's 10-K for fiscal 2024 (year ended March 30, 2024) reports net revenues of $6.631 billiona, 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 millionb 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 millionc, 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%d 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.
02—Key points
Key Highlights
- Net revenues of $6.631 billion, up 2.9% reported and 2.7% constant currency, led by international businesses
- Net income of $646.3 million (up from $522.7 million) and diluted EPS of $9.71 (up from $7.58)
- Gross profit margin rose 220 basis points to 66.8%, driven by lower freight costs, favorable mix, and higher average unit retail
- Operating income of $756.4 million, or 11.4% of net revenues, up 50 basis points
- Operating cash flow of $1.070 billion funded $449.7 million in share repurchases, $194.6 million in dividends, and $164.8 million in capital expenditures
- Net cash and short-term investments position of $642.7 million, up from $427.2 million
- CFO Jane Nielsen transitioned out of the CFO role; Justin Picicci appointed CFO effective May 23, 2024; quarterly dividend raised to $0.825 per share
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Ralph Lauren kept $0.10.
- Revenue$6.63B100.0%
- Cost of revenue−$2.20B33.2%
- Gross profit$4.43B66.8%
- Operating costs−$3.68B55.4%
- Operating income$756.4M11.4%
- Interest, other & tax−$110.1M1.7%
- Net income$646.3M9.7%
Where FY2024 revenue went
$6.63B- SG&A: $3.60B, 54% of revenue
- Cost of revenue: $2.20B, 33% of revenue
- Net income: $646.3M, 9.7% of revenue
- Other operating costs: $74.9M, 1.1% of revenue
- Interest, other & tax: $110.1M, 1.7% of revenue
Kept 9.7% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed May 23, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $6.63B$6.44B | +2.9% |
| Cost of Revenue | $2.20B$2.28B | −3.4% |
| Gross Profit | $4.43B$4.17B | +6.4% |
| SG&A Expenses | $3.60B$3.41B | +5.6% |
| Operating Expenses | $3.68B$3.46B | +6.2% |
| Operating Income | $756.40M$704.20M | +7.4% |
| Interest Expense | $42.20M$40.40M | +4.5% |
| Net Income | $646.30M$522.70M | +23.6% |
| EPS (Basic) | $9.91$7.72 | +28.4% |
| EPS (Diluted) | $9.71$7.58 | +28.1% |
| Shares Outstanding (Basic) | 65.20M67.70M | −3.7% |
| Shares Outstanding (Diluted) | 66.50M69.00M | −3.6% |
05—Questions
Frequently Asked Questions
How did Ralph Lauren perform financially in fiscal 2024?
Net revenues rose 2.9% to $6.631 billion, net income increased to $646.3 million, and diluted EPS rose to $9.71 from $7.58. Gross margin improved 220 basis points to 66.8%, while SG&A expenses rose to 54.3% of net revenues.
Which regions drove growth?
Net revenue growth was led by international businesses. Asia net revenues increased 9.8% (13.7% constant currency), and Europe increased 7.0% (3.2% constant currency). North America net revenues declined 2.3%, primarily due to a $113.3 million decline in wholesale.
How is the company returning capital to shareholders?
In fiscal 2024 the company repurchased $398.2 million of Class A common stock under its repurchase program and paid $194.6 million in dividends. About $776 million remained under the repurchase authorization as of March 30, 2024. The Board raised the quarterly dividend to $0.825 per share on May 16, 2024.
What leadership changes were disclosed?
Jane Nielsen ceased to serve as Chief Financial Officer effective May 23, 2024, and will remain Chief Operating Officer through March 29, 2025. Justin Picicci was appointed Chief Financial Officer effective May 23, 2024.
How much debt does the company carry and how much liquidity is available?
Consolidated indebtedness was approximately $1.1 billion, made up of unsecured senior notes. Credit and overdraft facilities had about $807 million of remaining availability as of March 30, 2024, and no Event of Default had occurred under the Global Credit Facility.
06—Continue