On May 23, 2024, Ralph Lauren Corp (RL, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of Fiscal 2024. Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
Performance Overview
Ralph Lauren Corp (RL, Financial) reported earnings per diluted share of $1.38 on a reported basis and $1.71 on an adjusted basis for the fourth quarter of Fiscal 2024. This compares favorably to the analyst estimate of $1.68 per share. Revenue for the quarter was $1.6 billion, slightly above the estimated $1.562 billion. For the full year, the company reported earnings per share of $9.71 on a reported basis and $10.31 on an adjusted basis, surpassing the annual estimate of $10.04. Full-year revenue reached $6.6 billion, aligning with the estimated $6.625 billion.
Key Financial Achievements
Ralph Lauren Corp (RL, Financial) achieved several notable financial milestones in Fiscal 2024:
- Fourth quarter revenue increased by 2% on a reported basis and 3% in constant currency.
- Full-year revenue grew by 3% in both reported and constant dollars.
- Global direct-to-consumer comparable store sales increased by 6% for both the fourth quarter and the full year.
- Gross margin for the fourth quarter was 66.6%, a 480 basis point improvement from the prior year.
- Operating margin for the fourth quarter was 6.9% on a reported basis and 8.7% on an adjusted basis.
Income Statement Highlights
For the fourth quarter of Fiscal 2024, Ralph Lauren Corp (RL, Financial) reported:
| Metric | Q4 FY2024 | Q4 FY2023 |
|---|---|---|
| Net Revenue | $1.6 billion | $1.57 billion |
| Gross Profit | $1.0 billion | $0.95 billion |
| Operating Income | $108 million | $75 million |
| Net Income | $91 million | $32 million |
| Earnings Per Share (Reported) | $1.38 | $0.48 |
| Earnings Per Share (Adjusted) | $1.71 | $0.90 |
Balance Sheet and Cash Flow
Ralph Lauren Corp (RL, Financial) ended Fiscal 2024 with $1.8 billion in cash and short-term investments and $1.1 billion in total debt. Inventory levels decreased by 16% compared to the prior year, ending at $902 million. The company repurchased approximately $398 million of Class A Common Stock during the fiscal year and announced a 10% increase in its regular quarterly cash dividend.
Strategic Initiatives and Outlook
Ralph Lauren Corp (RL, Financial) continues to focus on its strategic priorities, including brand elevation, core business growth, and expansion in key cities. The company introduced a fiscal 2025 outlook with expected net revenue growth in the low-single digits and operating margin expansion. The company also named Justin Picicci as Chief Financial Officer, effective May 23, 2024, as part of a multi-year succession plan.
"Our brand has always been about inspiring people to live the life of their dreams," said Ralph Lauren, Executive Chairman and Chief Creative Officer. "We marry elegance and style in aspirational worlds — from our recent fashion show featuring elevated classics to the vibrant home line we showcased last month in Milan — our teams around the world are delivering our vision with passion and care."
"Our teams delivered continued progress on our strategic and financial commitments in year two of our Next Great Chapter: Accelerate plan," said Patrice Louvet, President and Chief Executive Officer. "Supported by our increasing brand desirability and multiple engines of growth, this year's performance underscores the strength of our long-term strategy, even as we navigate a highly dynamic global operating environment."
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Ralph Lauren Corp for further details.
