How did Ralph Lauren perform in the fourth quarter of fiscal 2025?

Revenue increased 8% to $1.7 billion on a reported basis and 10% in constant currency. Reported diluted EPS was $2.03, and adjusted diluted EPS was $2.27, compared with $1.71 adjusted in the prior-year quarter. Adjusted gross margin was 68.6%, 200 basis points above the prior year.

What is the company's outlook for fiscal 2026?

The company preliminarily expects revenue to grow approximately low-single digits on a constant-currency basis, weighted to the first half. Operating margin is expected to expand modestly in constant currency, driven mainly by operating expense leverage. Gross margin is expected to be roughly flat in constant currency, as tariffs and non-cotton costs offset pricing and cotton savings.

What did the company do with capital returns?

Ralph Lauren returned $625 million to shareholders in fiscal 2025 through dividends and repurchases of Class A common stock. The board raised the quarterly dividend 10% to $0.9125 per share and authorized a new $1.5 billion repurchase program. At fiscal year-end, $352 million remained under the prior plan.

How strong is the balance sheet?

At March 29, 2025, cash and short-term investments totaled $2.1 billion against $1.1 billion of total debt, leaving net cash and short-term investments of $940.4 million. Inventory was $950 million, up 5% from the prior year.

Which regions drove growth?

For the fourth quarter, Europe revenue rose 12% on a reported basis and 16% in constant currency, and Asia rose 9% reported and 13% in constant currency, with China up more than 20%. North America grew 6%. For the full year, Europe grew 11% and Asia 9% on a reported basis, with China up high-teens.

RL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 22, 2025. Cited figures are marked; the original filing is the authoritative source.

Ralph Lauren Corporation reported results for the fourth quarter and full fiscal year ended March 29, 2025, and furnished its press release as Exhibit 99.1 under Item 2.02.

Fourth-quarter revenue rose 8% to $1.7 billion^a on a reported basis (10% in constant currency), and fiscal 2025 revenue rose 7% to $7.1 billion reported (8% constant currency). Fourth-quarter diluted EPS was $2.03 reported and $2.27 adjusted, versus $1.38 and $1.71 a year earlier. Full-year diluted EPS was $11.61 reported and $12.33 adjusted, versus $9.71 and $10.31 in fiscal 2024.

Direct-to-consumer comparable store sales increased 13% in the fourth quarter and 10% for the full year. The company ended fiscal 2025 with $2.1 billion^b in cash and short-term investments and $1.1 billion in total debt. It returned $625 million to shareholders in fiscal 2025 through dividends and repurchases, and its board approved a 10% dividend increase to $0.9125 per quarter and a $1.5 billion expansion of its share repurchase program.

Capital expenditures were $216 million^c for the year. For fiscal 2026, management issued preliminary guidance for low-single-digit constant-currency revenue growth, with growth weighted to the first half, and modest operating margin expansion in constant currency, inclusive of tariffs.

Gross margin is expected to be roughly flat in constant currency as tariff and non-cotton cost pressures offset AUR growth and lower cotton costs. The first quarter outlook calls for high-single-digit constant-currency revenue growth and operating margin expansion of 150 to 200 basis points.

02—Key points

Key Highlights

Q4 fiscal 2025 revenue rose 8% to $1.7 billion reported (10% constant currency), with Europe up 12% and Asia up 9% on a reported basis.
Full-year fiscal 2025 revenue reached $7.1 billion, up 7% reported and 8% in constant currency; reported operating income was $932 million (13.2% margin).
Global direct-to-consumer comparable store sales rose 13% in Q4 and 10% for the full year, with average unit retail up high single digits.
Q4 adjusted diluted EPS was $2.27 versus $1.71 a year earlier; full-year adjusted diluted EPS was $12.33 versus $10.31.
Board approved a 10% dividend increase to $0.9125 per quarter ($3.65 annualized) and a new $1.5 billion share repurchase authorization.
Cash and short-term investments were $2.1 billion at year-end against $1.1 billion of total debt.
Preliminary fiscal 2026 outlook calls for low-single-digit constant-currency revenue growth and modest operating margin expansion, with tariffs cited as a headwind.

03—Questions

Frequently Asked Questions

How did Ralph Lauren perform in the fourth quarter of fiscal 2025?
Revenue increased 8% to $1.7 billion on a reported basis and 10% in constant currency. Reported diluted EPS was $2.03, and adjusted diluted EPS was $2.27, compared with $1.71 adjusted in the prior-year quarter. Adjusted gross margin was 68.6%, 200 basis points above the prior year.
What is the company's outlook for fiscal 2026?
The company preliminarily expects revenue to grow approximately low-single digits on a constant-currency basis, weighted to the first half. Operating margin is expected to expand modestly in constant currency, driven mainly by operating expense leverage. Gross margin is expected to be roughly flat in constant currency, as tariffs and non-cotton costs offset pricing and cotton savings.
What did the company do with capital returns?
Ralph Lauren returned $625 million to shareholders in fiscal 2025 through dividends and repurchases of Class A common stock. The board raised the quarterly dividend 10% to $0.9125 per share and authorized a new $1.5 billion repurchase program. At fiscal year-end, $352 million remained under the prior plan.
How strong is the balance sheet?
At March 29, 2025, cash and short-term investments totaled $2.1 billion against $1.1 billion of total debt, leaving net cash and short-term investments of $940.4 million. Inventory was $950 million, up 5% from the prior year.
Which regions drove growth?
For the fourth quarter, Europe revenue rose 12% on a reported basis and 16% in constant currency, and Asia rose 9% reported and 13% in constant currency, with China up more than 20%. North America grew 6%. For the full year, Europe grew 11% and Asia 9% on a reported basis, with China up high-teens.

04—Continue

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