Q3 2025 Ralph Lauren Corp Earnings Call Transcript
Key Points
- Ralph Lauren Corp (RL) reported double-digit revenue growth, exceeding expectations across all geographies.
- The company achieved strong performance in both retail and wholesale channels, with retail comps increasing by 12%.
- Ralph Lauren Corp (RL) added a record 1.9 million new consumers to its direct-to-consumer businesses, driven by younger, higher-value cohorts.
- The company successfully reduced its global discount rate by more than 500 basis points, enhancing profitability.
- Ralph Lauren Corp (RL) continues to expand its store footprint, with plans to open around 85 new stores, focusing on key cities globally.
- Foreign currency fluctuations negatively impacted revenue growth by approximately 100 to 150 basis points.
- The company faces ongoing geopolitical and macroeconomic challenges, including inflationary pressures and supply chain disruptions.
- Despite strong performance, the North American wholesale market remains volatile and challenging.
- Ralph Lauren Corp (RL) is still in the early stages of its next-generation transformation project, with significant costs expected over the next few years.
- The company continues to prune its wholesale distribution, planning to exit 60 departmental store doors this fiscal year.
Ladies and gentlemen, thank you for standing by. Welcome to the Ralph Lauren third quarter fiscal year 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
I'd now like to turn over the conference to our host, Ms. Corinna Van der Ghinst. Please go ahead.
Good morning, and thank you for joining Ralph Lauren's third quarter fiscal 2025 conference call. With me today are Patrice Louvet, the company's President and Chief Executive Officer; and Justin Picicci, Chief Financial Officer. After prepared remarks, we will open up the call for your questions, which we ask that you limit to one per caller.
During today's call, our financial performance will be discussed on a constant currency adjusted basis. Our reported results, including foreign currency can be found in this morning's press release. We will also be making some forward-looking statements within the meaning of the federal securities laws, including our financial outlook.
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