01—Abstract
Summary
Summary of the 10-K filed May 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Ralph Lauren Corporation's Fiscal 2025 (ended March 29, 2025) 10-K shows net revenues of $7.079 billiona, 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 millionb, 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 millionc 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 milliond 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.
02—Key points
Key Highlights
- Net revenues of $7.079 billion, up 6.8% reported and 7.7% constant currency, with growth in all three reportable segments (North America, Europe, Asia).
- Operating income of $932.1 million, up 23.2%, with operating margin improving 180 basis points to 13.2%.
- Gross profit margin rose 180 basis points to 68.6%, driven by geographic and channel mix, AUR growth, and lower cotton costs.
- Diluted EPS of $11.61 versus $9.71 in Fiscal 2024; net income of $742.9 million, up 14.9%.
- Operating cash flow of $1.235 billion; net cash and short-term investments of $940.4 million at fiscal year-end.
- Shareholder returns: $480.9 million in share repurchases and withholdings and $201.1 million in dividends in Fiscal 2025; May 2025 board approved an additional $1.500 billion repurchase authorization and raised the quarterly dividend to $0.9125 per share.
- Key risks: new U.S. tariffs and retaliatory trade measures, given about 96% of products are produced outside the U.S.; wholesale customer concentration; and the Next Generation Transformation project, with $25.2 million in other charges in Fiscal 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Ralph Lauren kept $0.10.
- Revenue$7.08B100.0%
- Cost of revenue−$2.23B31.4%
- Gross profit$4.85B68.6%
- Operating costs−$3.92B55.4%
- Operating income$932.1M13.2%
- Interest, other & tax−$189.2M2.7%
- Net income$742.9M10.5%
Where FY2025 revenue went
$7.08B- SG&A: $3.86B, 55% of revenue
- Cost of revenue: $2.23B, 31% of revenue
- Net income: $742.9M, 10% of revenue
- Other operating costs: $57.8M, 0.8% of revenue
- Interest, other & tax: $189.2M, 2.7% of revenue
Kept 10% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed May 22, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.08B$6.63B | +6.7% |
| Cost of Revenue | $2.23B$2.20B | +1.2% |
| Gross Profit | $4.85B$4.43B | +9.5% |
| SG&A Expenses | $3.86B$3.60B | +7.3% |
| Operating Expenses | $3.92B$3.68B | +6.7% |
| Operating Income | $932.10M$756.40M | +23.2% |
| Interest Expense | $44.10M$42.20M | +4.5% |
| Net Income | $742.90M$646.30M | +14.9% |
| EPS (Basic) | $11.86$9.91 | +19.7% |
| EPS (Diluted) | $11.61$9.71 | +19.6% |
| Shares Outstanding (Basic) | 62.60M65.20M | −4.0% |
| Shares Outstanding (Diluted) | 64.00M66.50M | −3.8% |
05—Questions
Frequently Asked Questions
How did Ralph Lauren perform financially in Fiscal 2025?
Net revenues rose 6.8% on a reported basis to $7.079 billion, and operating income rose 23.2% to $932.1 million. Net income reached $742.9 million, and diluted EPS was $11.61 compared with $9.71 in Fiscal 2024. Growth came from all three reportable segments.
What drove the improvement in gross margin?
Gross profit as a percentage of net revenues increased 180 basis points to 68.6%. The filing attributes about 70 basis points to geographic and channel mix and the remaining 110 basis points mainly to AUR growth of approximately high-single digits and lower cotton costs, partly offset by non-cotton product costs and unfavorable foreign currency effects.
How strong is the company's liquidity and balance sheet?
The company ended the year with net cash and short-term investments of $940.4 million, up from $642.7 million. Operating cash flow was $1.235 billion. Total debt was about $1.1 billion, with approximately $805 million of remaining credit facility availability and no Event of Default under the Global Credit Facility.
What are the main risks flagged for investors?
The filing highlights new U.S. tariffs and potential retaliatory trade measures, which could raise product costs because about 96% of products are produced outside the U.S. It also cites consumer demand sensitivity, concentration in three large wholesale customers (about 12% of net revenues), and the execution risk of the Next Generation Transformation project.
What capital return actions did the company announce?
In Fiscal 2025 the company spent $480.9 million on share repurchases and tax withholdings and paid $201.1 million in dividends. 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.
06—Continue