How did Ralph Lauren perform in fiscal 2024?

Full year net revenues increased 3% to $6.6 billion, with Asia up 10% on a reported basis and Europe up 7%, while North America declined 2%. Reported operating margin was 11.4%, and adjusted operating margin was 12.5%, 50 basis points above the prior year.

What is the company's outlook for fiscal 2025?

The company expects revenue to rise low-single digits in constant currency, centering on about 2% to 3%, with foreign currency expected to reduce revenue growth by approximately 90 basis points. Operating margin is expected to expand approximately 100 to 120 basis points in constant currency, and the first quarter revenue is expected to be up slightly in constant currency and down slightly on a reported basis.

Are there changes to the dividend or shareholder returns?

The board approved a 10% increase in the regular quarterly dividend to $0.825 per share, or $3.30 annually. The company returned approximately $600 million to shareholders in fiscal 2024 through dividends and repurchases of Class A Common Stock, and about $776 million remained under its share repurchase authorization at fiscal year end.

What leadership changes were announced?

Justin Picicci was named Chief Financial Officer effective May 23, 2024, after 18 years at the company, most recently as Enterprise Chief Financial Officer. Jane Nielsen will remain Chief Operating Officer through March 2025.

RL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 23, 2024. Cited figures are marked; the original filing is the authoritative source.

Ralph Lauren Corporation reported fourth quarter and full year fiscal 2024 results (fiscal year ended March 30, 2024) in a press release furnished as Exhibit 99.1 under Item 2.02.

Full year net revenues rose 3% to $6.6 billion^a, with fourth quarter revenue up 2% on a reported basis and 3% in constant currency. Global direct-to-consumer comparable store sales increased 6% for both the fourth quarter and the full year. Reported diluted EPS was $9.71 for the year versus $7.58 in fiscal 2023, and adjusted diluted EPS was $10.31 versus $8.34.

Reported operating margin was 11.4%^b and adjusted operating margin was 12.5%. The company outlined fiscal 2025 guidance calling for low-single-digit revenue growth on both reported and constant currency bases, centering on about 2% to 3% in constant currency, with operating margin expected to expand approximately 100 to 120 basis points in constant currency. For the first quarter of fiscal 2025, revenue is expected to be up slightly in constant currency and down slightly on a reported basis.

The company also declared a 10% increase in its quarterly dividend to $0.825^c per share, and announced that Justin Picicci will become Chief Financial Officer effective May 23, 2024, as part of a multi-year succession plan, while Jane Nielsen remains Chief Operating Officer through fiscal 2025. The company ended fiscal 2024 with $1.8 billion in cash and short-term investments and $1.1 billion in total debt, and returned approximately $600 million to shareholders through dividends and share repurchases during the year.

Inventory fell 16% to $902 million^d. Capital expenditures for fiscal 2025 are planned at $300 million to $325 million.

02—Key points

Key Highlights

Full year fiscal 2024 net revenues rose 3% to $6.6 billion on both reported and constant currency bases.
Global direct-to-consumer comparable store sales increased 6% in both the fourth quarter and full year, with average unit retail up 11% for the full year.
Full year reported diluted EPS of $9.71 compared with $7.58 in fiscal 2023; adjusted diluted EPS of $10.31 compared with $8.34.
Fiscal 2025 outlook calls for low-single-digit revenue growth (about 2% to 3% in constant currency) and operating margin expansion of approximately 100 to 120 basis points in constant currency.
Quarterly dividend increased 10% to $0.825 per share, or $3.30 annually, with the next payment on July 12, 2024.
Justin Picicci named Chief Financial Officer effective May 23, 2024, as part of a multi-year succession plan.
Ended fiscal 2024 with $1.8 billion in cash and short-term investments and $1.1 billion in total debt; inventory decreased 16% to $902 million.

03—Questions

Frequently Asked Questions

How did Ralph Lauren perform in fiscal 2024?
Full year net revenues increased 3% to $6.6 billion, with Asia up 10% on a reported basis and Europe up 7%, while North America declined 2%. Reported operating margin was 11.4%, and adjusted operating margin was 12.5%, 50 basis points above the prior year.
What is the company's outlook for fiscal 2025?
The company expects revenue to rise low-single digits in constant currency, centering on about 2% to 3%, with foreign currency expected to reduce revenue growth by approximately 90 basis points. Operating margin is expected to expand approximately 100 to 120 basis points in constant currency, and the first quarter revenue is expected to be up slightly in constant currency and down slightly on a reported basis.
Are there changes to the dividend or shareholder returns?
The board approved a 10% increase in the regular quarterly dividend to $0.825 per share, or $3.30 annually. The company returned approximately $600 million to shareholders in fiscal 2024 through dividends and repurchases of Class A Common Stock, and about $776 million remained under its share repurchase authorization at fiscal year end.
What leadership changes were announced?
Justin Picicci was named Chief Financial Officer effective May 23, 2024, after 18 years at the company, most recently as Enterprise Chief Financial Officer. Jane Nielsen will remain Chief Operating Officer through March 2025.

04—Continue

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