coldsnowstorm/iStock Unreleased via Getty Images This article analyzes Ralph Lauren Corporation's (NYSE:RL) Q1 2025 results and earnings call. It also revisits the company's valuation, as it is slightly down since my last article from May. The RL results were modest in absolute terms, with revenues up 1% and 5% comparable, better in Asia and Europe and worse in the US. However, these results are much better when read against the background of disappointing sales from other luxury companies, like LVMH Moët H ...

Ralph Lauren Corporation (RL) has posted impressive first-quarter fiscal 2025 results, wherein the bottom and top lines beat the Zacks Consensus Estimate. Results have gained from robust demand and brand strength. The company has been on track with its Next Great Chapter: Accelerate plan. RL has reported adjusted earnings per share of $2.70, which surpassed the consensus estimate of $2.45. Also, the bottom line increased from earnings of $2.34 per share in the year-earlier quarter. Net revenues grew 1% year ...

Financial Data and Key Metrics - Total company revenue growth of 3% exceeded guidance, driven by direct-to-consumer channels and international businesses [21] - Adjusted gross margin expanded by 210 basis points to 70.9%, driven by favorable mix shifts, AUR growth, and lower cotton costs [22] - Adjusted operating margin expanded by 140 basis points to 14.8% [23] - Free cash flow of $245 million was generated, with $225 million returned to shareholders via dividends and share repurchases [28] - Net inventory decreased by 13% year-over-year, slightly better than planned [28] Business Line Performance - Core products, representing over 70% of the business, saw low single-digit sales growth, slightly ahead of total company growth [13] - High-potential categories (Women's Apparel, Outerwear, Handbags) grew mid-single digits, outpacing total company growth [14] - DTC businesses added 1.3 million new consumers, with net promoter scores increasing globally [12] - Digital ecosystem sales, including own sites and wholesale digital accounts, increased high single-digits [22] Regional Performance - Asia led growth with a 9% revenue increase, driven by strong performance in China (low double-digit growth) and Japan (high single-digit growth) [27] - Europe revenue increased 7%, with retail comps up 8% and wholesale up 5% [25][26] - North America revenue declined 4%, with retail comps up 1% and wholesale down 13% [23][24] Strategic Direction and Industry Competition - The company is focused on elevating its lifestyle brand, driving core product growth, and expanding in key cities through consumer ecosystems [6][7][8] - Marketing investments increased to 6.7% of sales, supporting key activations like the New York Fashion Show and Milan presentations [23] - The company is leveraging its global supply chain and operational discipline to mitigate disruptions and drive long-term efficiency [19] Management Commentary on Operating Environment and Future Outlook - Management remains cautious about the global macroeconomic environment, including inflationary pressures and consumer spending headwinds [29] - The company expects constant currency revenue growth of 2-3% for fiscal 2025, with stronger growth in DTC and continued challenges in North America wholesale [29] - Operating margin is expected to expand by 100-120 basis points, driven by favorable mix shifts and AUR growth [30] Other Key Information - The company opened eight new owned and partnered stores, primarily in Asia, and renovated its Chicago flagship store [16] - Social media followers grew by low teens year-over-year, surpassing 60 million [12] - The company was recognized for its sustainability efforts and diversity initiatives, including winning the Fast Company Innovation by Design Award [18] Q&A Session Summary Question: Consumer resilience and Europe trends [35] - The company attributes consumer resilience to its powerful brand, timeless products, and elevated go-to-market strategy [37] - In Europe, DTC comps were strong, with wholesale growth driven by digital pure-plays and re-orders [38][39] Question: Full-year guidance and North America wholesale [42] - The company maintained its full-year guidance, citing cautious consumer behavior and wholesale softness in North America [43] - North America wholesale is expected to stabilize, with sell-in aligning more closely with sell-out trends [46] Question: International brand elevation and SG&A leverage [48] - The company continues to elevate its brand internationally, with strong performance in key markets like China and Japan [49] - SG&A leverage is expected in the second half of the year, driven by timing of marketing investments and scaling of strategic initiatives [51][52] Question: Gross margin opportunities [54] - Gross margin expansion is driven by favorable product mix, channel and geographic shifts, and AUR growth [54] - Cotton cost benefits are expected to contribute 175 basis points over the next two years, with half realized in fiscal 2025 [75] Question: Price sensitivity and holiday strategies [57] - The company's full-price business is performing well, with strong gross margin expansion and quality of sales [58] - Tactical strategies are in place to engage value-oriented consumers, including targeted price-value propositions [58] Question: North America wholesale consolidation [61] - The company is closing 45 lower-tier wholesale doors in fiscal 2025, focusing on top 100 doors and digital channels [62] - Share growth in higher-tier wholesale is encouraging, with quality of sales improving [63][64] Question: High-potential categories [66] - Women's apparel, outerwear, and handbags are key growth areas, with women's apparel leading with double-digit growth [68] - The company is building momentum in handbags, particularly with the Polo ID collection [70] Question: Retail channel performance and cotton benefits [72] - Full-price stores performed strongly globally, while outlet comps were stable [74] - Cotton cost benefits are expected to contribute 175 basis points over the next two years, with half realized in fiscal 2025 [75] Question: DTC growth outlook [77] - Digital growth is a priority, with international leading the way and North America digital performance expected to improve in the second half of the year [77][78]

For the quarter ended June 2024, Ralph Lauren (RL) reported revenue of $1.51 billion, up 1.1% over the same period last year. EPS came in at $2.70, compared to $2.34 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +1.63%. The company delivered an EPS surprise of +10.20%, with the consensus EPS estimate being $2.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-13057 Ralph Lauren Corporation (Address of principal executive of ices) (212) 318-7000 (Registrant's telephone number, including area code) Securities registered ...

Ralph Lauren (RL) came out with quarterly earnings of $2.70 per share, beating the Zacks Consensus Estimate of $2.45 per share. This compares to earnings of $2.34 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 10.20%. A quarter ago, it was expected that this upscale clothing company would post earnings of $1.65 per share when it actually produced earnings of $1.71, delivering a surprise of 3.64%. Over the last four quarters, ...

EXHIBIT 99.1 RALPH LAUREN REPORTS FIRST QUARTER FISCAL 2025 RESULTS AND REAFFIRMS FULL YEAR OUTLOOK • First Quarter Revenue Increased 1% on a Reported Basis and 3% in Constant Currency, Ahead of Expectations Led by Growth in Europe and Asia • Global Direct-to-Consumer Comparable Store Sales Grew 5%, Driven by Positive Retail Comps Across All Regions • Adjusted Gross and Operating Margin Expansion Exceeded Our Outlook, with Brand Elevation and Expense Discipline More than Offsetting Investments in Marketing ...

Note: Ralph Lauren's FY'24 ended March 30, 2024 HAMBURG, GERMANY - JULY 03: A Ralph Lauren sign store is seen on July 03, 2020 in Hamburg, Germany. ... [+] (Photo by Jeremy Moeller/Getty Images) Getty Images Ralph Lauren (NYSE: RL), a company engaged in the design, marketing, and distribution of premium lifestyle products, including apparel, accessories, fragrances, and home furnishings, is scheduled to report its fiscal firstquarter results on Wednesday, August 7. We expect Ralph Lauren stock to likely tra ...

NEW YORK, Aug. 1, 2024 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Ralph Lauren Corporation (NYSE: RL) on behalf of the company's shareholders. The investigation seeks to determine whether Ralph Lauren's directors breached their fiduciary duties in connection with recent corporate actions. If you are a shareholder of Ralph Lauren Corporation and are interested in obtaining additional information regarding this investigation, free of charge, please visit us at: https://pjlfirm. ...

Ralph Lauren (RL) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and ...