Ralph Lauren(RL) - 2024 Q4 - Annual Results

Executive Summary Ralph Lauren Corporation exceeded expectations in FY2024 Q4 and full year, driven by revenue growth, improved margins, and strong comparable store sales Fiscal 2024 Performance Highlights Ralph Lauren Corporation achieved strong financial results in FY2024 Q4 and full year, marked by increased revenue, expanded margins, and significant shareholder returns Key Financial Data for Q4 FY2024 (YoY) | Metric | Q4 FY2024 | Q4 FY2023 | Change (Reported) | | :--- | :--- | :--- | :--- | | Diluted EPS (Reported) | $1.38 | $0.48 | +187.5% | | Diluted EPS (Adjusted) | $1.71 | $0.90 | +90.0% | | Revenue | +2% (Reported), +3% (Constant Currency) | - | - | | Global Direct-to-Consumer Comparable Store Sales | +6% | - | - | | Average Unit Retail (AUR) | Double-digit growth | - | - | | Gross Margin | Expansion | - | - | | Operating Margin | Expansion | - | - | Key Financial Data for Full Year FY2024 (YoY) | Metric | Full Year FY2024 | Full Year FY2023 | Change (Reported) | | :--- | :--- | :--- | :--- | | Revenue | +3% (Reported), +3% (Constant Currency) | - | - | | Global Direct-to-Consumer Comparable Store Sales | +6% | - | - | | Reported EPS | +28% | - | - | | Adjusted EPS | +24% | - | - | | Operating Margin | Reached Upper End of Guidance | - | - | - The company returned approximately $600 million to shareholders in FY2024 through dividends and share repurchases[3] Fiscal 2025 Outlook & Strategic Focus The company anticipates low single-digit net revenue growth in FY2025, focusing on brand investment, core product portfolios, and global consumer ecosystems for sustainable growth FY2025 Outlook | Metric | Expectation | | :--- | :--- | | Net Revenue Growth | Low single-digit (Reported and Constant Currency) | | Gross Margin | Expansion (Consistent with Long-Term Targets) | | Operating Margin | Expansion (Consistent with Long-Term Targets) | - The company will continue to invest in its brand, iconic core product portfolio, and consumer ecosystems in key global cities[3] Key Corporate Announcements The company announced Justin Picicci's appointment as CFO and approved a 10% increase in its quarterly cash dividend - Justin Picicci was appointed Chief Financial Officer, effective May 23, 2024, with Jane Nielsen continuing as Chief Operating Officer through FY2025[3] - The Board of Directors approved a 10% increase in the quarterly cash dividend to $0.825 per share[3] Strategic Priorities & Key Achievements The company achieved significant brand engagement and product performance in FY2024, expanding its global ecosystem and attracting new customers Brand & Customer Engagement The company successfully attracted 5 million new customers and achieved double-digit social media follower growth in FY2024 through continuous brand elevation and key marketing initiatives - Acquired 5 million new customers in direct-to-consumer channels, achieved low double-digit social media follower growth, and saw increased global brand awareness, purchase intent, and Net Promoter Score[6] - Key brand activations, including sponsoring the Australian Open, launching the second 'Artist in Residence' collection with Navajo artist Naiomi Glasses, Lunar New Year campaigns, and celebrity dressing, drove consumer recruitment and engagement[6] Product & Category Performance Core businesses and high-potential categories, including women's, outerwear, and home, achieved robust growth, with Average Unit Retail (AUR) consistently increasing Product and Category Growth (Constant Currency) | Category | Q4 FY2024 Growth | Full Year FY2024 Growth | | :--- | :--- | :--- | | Core Businesses | Low single-digit | High single-digit | | High-Potential Categories (Women's, Outerwear, Home) | Mid single-digit | High single-digit | | Average Unit Retail (AUR) | +13% | +11% | - Product highlights this quarter included the launch of Polo 67 fragrance (fronted by New York Yankees captain Aaron Judge), the second 'Artist in Residence' collection 'Color in Motion', and the Lunar New Year 'Year of the Dragon' collection[6] Geographic Performance & Ecosystem Expansion Asia demonstrated strong performance in Q4 and full year, particularly China, as the company expanded its global ecosystem with new stores and digital platforms in key cities Regional Sales Performance (YoY) | Region | Q4 FY2024 (Reported) | Q4 FY2024 (Constant Currency) | Full Year FY2024 (Reported) | Full Year FY2024 (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Asia | +1% | +7% | +10% | +14% | | China | High single-digit | Low double-digit | >25% | >25% | | North America | +2% | - | -2% | - | | Europe | +2% | Slight increase | +7% | +3% | - Direct-to-consumer sales growth in North America and Europe offset anticipated declines in the wholesale business[6] - The company continued to expand its key city ecosystems over the past fiscal year, opening new flagship stores in Amsterdam and Singapore, launching its first Ralph Lauren store and digital commerce site in Canada, and opening its first Ralph's Coffee locations in Paris, Shenzhen, and Dubai[6] Financial Performance Review This section provides a detailed review of the company's financial performance for the fourth quarter and full fiscal year 2024, along with balance sheet and cash flow highlights Fourth Quarter Fiscal 2024 Financial Review In Q4 FY2024, the company's revenue grew 2% to $1.6 billion, with significant expansion in gross and adjusted operating margins, and adjusted diluted EPS reaching $1.71 Net Revenue Q4 FY2024 Net Revenue | Metric | Amount (million USD) | YoY Growth (Reported) | YoY Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | Total Net Revenue | $1,600 | +2% | +3% | | North America Revenue | $668 | +2% | - | | Europe Revenue | $469 | +2% | Slight increase | | Asia Revenue | $394 | +1% | +7% | - Foreign currency had an approximate 110 basis point negative impact on revenue growth, while the earlier Easter holiday contributed 50 basis points to revenue growth[8] Gross Profit Q4 FY2024 Gross Profit | Metric | Amount (million USD) | Gross Margin | Adjusted Gross Margin (YoY Change) | | :--- | :--- | :--- | :--- | | Gross Profit | $1,000 | 66.6% | +480 basis points | - Gross margin expansion was primarily driven by lower freight costs, channel and geographic mix shifts, and Average Unit Retail (AUR) growth across all regions[9] Operating Expenses Q4 FY2024 Operating Expenses | Metric | Amount (million USD) | Adjusted Operating Expenses (YoY Change) | Adjusted Operating Expense Rate (YoY Change) | | :--- | :--- | :--- | :--- | | Reported Operating Expenses | $936 | +3% | +80 basis points (to 57.8%) | - Increased operating expenses were primarily driven by channel and geographic mix shifts from strong international and direct-to-consumer growth[10] Operating Income Q4 FY2024 Operating Income | Metric | Amount (million USD) | Operating Margin | Adjusted Operating Income (YoY Change) | Adjusted Operating Margin (YoY Change) | | :--- | :--- | :--- | :--- | | Reported Operating Income | $108 | 6.9% | $137 | +380 basis points (to 8.7%) | Q4 FY2024 Regional Adjusted Operating Margin | Region | Adjusted Operating Margin (YoY Change) | | :--- | :--- | | North America | 17.0% (+480 basis points) | | Europe | 23.9% (+450 basis points) | | Asia | 16.8% (+260 basis points) | Net Income and EPS Q4 FY2024 Net Income and EPS | Metric | Q4 FY2024 (Reported) | Q4 FY2024 (Adjusted) | Q4 FY2023 (Reported) | Q4 FY2023 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Net Income (million USD) | $91 | $112 | $32 | $61 | | Diluted EPS | $1.38 | $1.71 | $0.48 | $0.90 | Effective Tax Rate Q4 FY2024 Effective Tax Rate | Metric | Q4 FY2024 (Reported) | Q4 FY2024 (Adjusted) | Q4 FY2023 (Reported) | Q4 FY2023 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Effective Tax Rate | 19% | 20% | 34% | 27% | - The decrease in tax rate was primarily due to favorable true-ups, additional foreign tax benefits, and a reduction in certain prior-period discrete tax accruals[13] Full Year Fiscal 2024 Financial Review For the full FY2024, the company's revenue grew 3% to $6.6 billion, with improved adjusted gross and operating margins, and adjusted diluted EPS reaching $10.31 Net Revenue Full Year FY2024 Net Revenue | Metric | Amount (million USD) | YoY Growth (Reported) | YoY Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | Total Net Revenue | $6,600 | +3% | +3% | | North America Revenue | $3,000 | -2% | - | | Europe Revenue | $2,000 | +7% | +3% | | Asia Revenue | $1,600 | +10% | +14% | - Foreign currency had an approximate 20 basis point positive impact on revenue growth[14] Gross Profit Full Year FY2024 Gross Profit | Metric | Amount (million USD) | Gross Margin | Adjusted Gross Margin (YoY Change) | | :--- | :--- | :--- | :--- | | Gross Profit | $4,400 | 66.8% | +190 basis points | - Foreign currency had an approximate 20 basis point negative impact on gross margin[15] Operating Expenses Full Year FY2024 Operating Expenses | Metric | Amount (million USD) | Adjusted Operating Expenses (YoY Change) | Adjusted Operating Expense Rate (YoY Change) | | :--- | :--- | :--- | :--- | | Reported Operating Expenses | $3,700 | +6% | +140 basis points (to 54.3%) | - Reported operating expenses included $75 million in restructuring-related and other net charges[17] Operating Income Full Year FY2024 Operating Income | Metric | Amount (million USD) | Operating Margin | Adjusted Operating Income (YoY Change) | Adjusted Operating Margin (YoY Change) | | :--- | :--- | :--- | :--- | | Reported Operating Income | $756 | 11.4% | $826 | +50 basis points (to 12.5%) | Full Year FY2024 Regional Adjusted Operating Margin | Region | Adjusted Operating Margin (YoY Change) | | :--- | :--- | | North America | 18.6% (-10 basis points) | | Europe | 23.6% (+150 basis points) | | Asia | 21.4% (+110 basis points) | Net Income and EPS Full Year FY2024 Net Income and EPS | Metric | Full Year FY2024 (Reported) | Full Year FY2024 (Adjusted) | Full Year FY2023 (Reported) | Full Year FY2023 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Net Income (million USD) | $646 | $686 | $523 | $576 | | Diluted EPS | $9.71 | $10.31 | $7.58 | $8.34 | Effective Tax Rate Full Year FY2024 Effective Tax Rate | Metric | Full Year FY2024 (Reported) | Full Year FY2024 (Adjusted) | Full Year FY2023 (Reported) | Full Year FY2023 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Effective Tax Rate | 17% | 19% | 24% | 24% | Balance Sheet and Cash Flow Review As of FY2024 end, cash and short-term investments increased to $1.8 billion, total debt remained stable, and inventory decreased by 16%, with reduced capital expenditures Key Balance Sheet Data as of FY2024 End | Metric | FY2024 End (million USD) | FY2023 End (million USD) | Change | | :--- | :--- | :--- | :--- | | Cash and Short-term Investments | $1,800 | $1,600 | +$200M | | Total Debt | $1,100 | $1,100 | Stable | | Inventory | $902 | $1,071 | -16% | | Capital Expenditures (FY24) | $165 | $217 | -$52M | - The company repurchased approximately $121 million of Class A common stock in Q4 FY2024 and $398 million for the full year, with approximately $776 million remaining under its share repurchase authorization at fiscal year-end[21] - The decrease in capital expenditures was primarily due to fewer new store openings in FY2024 and the deferral of certain new store openings and renovation projects to FY2025[22] Corporate Updates This section covers recent corporate developments, including leadership appointments and dividend policy changes Leadership Appointment The company appointed Justin Picicci as Chief Financial Officer, part of a multi-year succession plan, with Jane Nielsen continuing as Chief Operating Officer - Justin Picicci was appointed Chief Financial Officer, effective May 23, 2024, bringing 18 years of extensive business and corporate finance experience at Ralph Lauren[23] - Jane Nielsen will continue as Chief Operating Officer through March 2025, overseeing key operational and strategic functions[23] Dividend Increase The Board of Directors announced a 10% increase in the quarterly cash dividend for common stock, setting the new dividend at $0.825 per share Dividend Information | Metric | Amount | | :--- | :--- | | New Quarterly Cash Dividend | $0.825/share | | Total Annual Dividend | $3.30/share | | Next Payment Date | July 12, 2024 | | Record Date | June 28, 2024 | Fiscal 2025 Outlook This section outlines the company's financial projections and strategic priorities for the upcoming fiscal year and first quarter Full Year Fiscal 2025 Outlook The company projects low single-digit revenue growth for FY2025, with operating margin expansion of approximately 100 to 120 basis points, driven by gross margin expansion and operating expense leverage Full Year FY2025 Outlook | Metric | Expectation | | :--- | :--- | | Revenue Growth (Constant Currency) | Low single-digit (approx. 2% to 3%) | | FX Impact on Revenue | Negative approx. 90 basis points | | Operating Margin Expansion (Constant Currency) | Approx. 100 to 120 basis points | | Gross Margin Growth (Constant Currency) | Approx. 50 to 100 basis points | | FX Impact on Gross and Operating Margin | Negative approx. 30 basis points | | Tax Rate | 23% to 24% | | Capital Expenditures | Approx. $300M to $325M | - Gross margin growth will be driven by Average Unit Retail (AUR) growth, lower cotton costs, and favorable geographic and channel mix shifts, offsetting increased material and labor costs and freight costs from Red Sea shipping disruptions[28] First Quarter Fiscal 2025 Outlook The company expects slight revenue growth (constant currency) in Q1 FY2025, with operating margin expansion of approximately 60 to 80 basis points, primarily driven by strong gross margin growth Q1 FY2025 Outlook | Metric | Expectation | | :--- | :--- | | Revenue Growth (Constant Currency) | Slight increase | | Revenue Growth (Reported) | Slight decrease (including approx. 160 basis points negative FX impact) | | Operating Margin Expansion (Constant Currency) | Approx. 60 to 80 basis points | | Gross Margin Expansion | Approx. 140 to 180 basis points | | FX Impact on Gross and Operating Margin | Negative approx. 40 basis points | | Tax Rate | Approx. 24% to 25% | - The revenue outlook includes an approximate 50 basis point negative impact from the earlier Easter holiday, which benefited Q4 FY2024[29] - Gross margin expansion will be driven by lower cotton costs and continued Average Unit Retail (AUR) growth, partially offset by increased other product costs[30][31] Additional Information This section provides details on the company's conference call, an overview of Ralph Lauren Corporation, and important disclosures regarding forward-looking statements Conference Call Details The company held a conference call and webcast on May 23, 2024, to discuss Q4 and full-year results, with replay information provided - The conference call was held on May 23, 2024, at 9:00 AM ET, accessible via the company's investor relations website or by dialing a phone number[32] - An online archive and telephone replay of the conference call will be available until May 30, 2024[33] About Ralph Lauren Ralph Lauren Corporation is a leading global designer, marketer, and distributor of luxury lifestyle products, with over 50 years of history across five product categories - The company is dedicated to inspiring dreams of a better life through authenticity and timeless style[34] - The company's brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps[34] Special Note Regarding Forward-Looking Statements This press release contains forward-looking statements about future operations, financial conditions, and strategic plans, subject to risks and uncertainties that may cause actual results to differ materially - Forward-looking statements are identified by words such as 'aim', 'anticipate', 'outlook', 'estimate', 'expect', and similar expressions[35] - Factors that could cause actual results to differ include loss of key personnel, inflationary pressures, geopolitical and macroeconomic environments, supply chain disruptions, inventory management, currency fluctuations, changes in consumer demand, brand image maintenance, cybersecurity risks, and changes in laws and regulations[36][37] - The company undertakes no obligation to publicly update or revise any forward-looking statements[37] Consolidated Financial Statements This section presents the company's consolidated balance sheets, statements of operations, and cash flows for the reported fiscal periods Consolidated Balance Sheets As of March 30, 2024, the company reported total assets of $6.6026 billion, total liabilities of $4.1523 billion, and shareholders' equity of $2.4503 billion Consolidated Balance Sheets (as of March 30, 2024) | Item | March 30, 2024 (million USD) | April 1, 2023 (million USD) | | :--- | :--- | :--- | | Assets: | | | | Cash and Cash Equivalents | 1,662.2 | 1,529.3 | | Short-term Investments | 121.0 | 36.4 | | Inventory | 902.2 | 1,071.3 | | Total Current Assets | 3,359.8 | 3,324.1 | | Property and Equipment, Net | 850.4 | 955.5 | | Operating Lease Right-of-Use Assets | 1,014.6 | 1,134.0 | | Goodwill | 888.1 | 898.9 | | Total Assets | 6,602.6 | 6,789.5 | | Liabilities and Equity: | | | | Total Current Liabilities | 1,467.2 | 1,493.5 | | Long-term Debt | 1,140.5 | 1,138.5 | | Long-term Operating Lease Liabilities | 1,014.0 | 1,141.1 | | Total Liabilities | 4,152.3 | 4,359.0 | | Shareholders' Equity | 2,450.3 | 2,430.5 | | Total Liabilities and Equity | 6,602.6 | 6,789.5 | | Net Cash and Short-term Investments | 642.7 | 427.2 | Consolidated Statements of Operations In Q4 FY2024, net revenue was $1.5679 billion, net income was $90.7 million, and diluted EPS was $1.38; for the full year, net revenue was $6.6314 billion, net income was $646.3 million, and diluted EPS was $9.71 Consolidated Statements of Operations (million USD, except per share data) | Item | Q4 FY2024 | Q4 FY2023 | Full Year FY2024 | Full Year FY2023 | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 1,567.9 | 1,540.8 | 6,631.4 | 6,443.6 | | Cost of Goods Sold | (524.2) | (590.2) | (2,199.6) | (2,277.8) | | Gross Profit | 1,043.7 | 950.6 | 4,431.8 | 4,165.8 | | Selling, General and Administrative Expenses | (906.6) | (878.2) | (3,600.5) | (3,408.9) | | Operating Income | 107.8 | 40.2 | 756.4 | 704.2 | | Net Income | 90.7 | 32.3 | 646.3 | 522.7 | | Diluted EPS | 1.38 | 0.48 | 9.71 | 7.58 | | Dividends Per Share | 0.75 | 0.75 | 3.00 | 3.00 | Consolidated Statements of Cash Flows For the full FY2024, the company generated $1.0697 billion in net cash from operating activities, used $256.8 million in investing activities, and used $665.6 million in financing activities Consolidated Statements of Cash Flows (million USD) | Item | Full Year FY2024 | Full Year FY2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 1,069.7 | 411.0 | | Net Cash Used in Investing Activities | (256.8) | 471.5 | | Net Cash Used in Financing Activities | (665.6) | (1,208.8) | | Cash and Cash Equivalents, End of Period | 1,670.6 | 1,536.9 | - Net cash provided by operating activities significantly increased, primarily due to higher net income and reduced inventory[45] - Net cash used in investing activities shifted from a net inflow to a net outflow, mainly due to increased purchases of investments and decreased sales/maturities of investments[45] Segment Information In Q4 FY2024, North America, Europe, and Asia all reported growth in net revenue and operating income, with Asia and Europe showing strong full-year performance Segment Net Revenue (million USD) | Region | Q4 FY2024 | Q4 FY2023 | Full Year FY2024 | Full Year FY2023 | | :--- | :--- | :--- | :--- | :--- | | North America | 667.7 | 655.6 | 2,950.5 | 3,020.5 | | Europe | 469.2 | 460.8 | 1,968.0 | 1,839.2 | | Asia | 394.3 | 390.0 | 1,566.6 | 1,426.7 | Segment Operating Income (million USD) | Region | Q4 FY2024 | Q4 FY2023 | Full Year FY2024 | Full Year FY2023 | | :--- | :--- | :--- | :--- | :--- | | North America | 113.5 | 68.4 | 553.6 | 543.2 | | Europe | 111.9 | 89.1 | 464.9 | 406.5 | | Asia | 66.0 | 55.4 | 335.9 | 289.6 | Constant Currency Financial Measures The company provides comparable store sales and segment net revenue data at constant currency to isolate the impact of foreign exchange fluctuations on performance Constant Currency Comparable Store Sales Change (%) | Region | Q4 FY2024 | Full Year FY2024 | | :--- | :--- | :--- | | North America (Total) | 3% | 2% | | Europe (Total) | 12% | 8% | | Asia (Total) | 6% | 10% | | Ralph Lauren Corporation (Total) | 6% | 6% | Constant Currency Segment Net Revenue Change (%) | Region | Q4 FY2024 | Full Year FY2024 | | :--- | :--- | :--- | | North America | 1.8% | (2.2%) | | Europe | 0.5% | 3.2% | | Asia | 7.3% | 13.7% | | Total Net Revenue | 2.9% | 2.7% | Net Revenues by Sales Channel Retail was the primary revenue source for the company in Q4 and full FY2024, with wholesale and licensing also contributing Net Revenues by Sales Channel (million USD) | Sales Channel | Q4 FY2024 | Q4 FY2023 | Full Year FY2024 | Full Year FY2023 | | :--- | :--- | :--- | :--- | :--- | | Retail | 951.1 | 898.6 | 4,351.0 | 4,053.1 | | Wholesale | 580.1 | 607.8 | 2,134.1 | 2,233.3 | | Licensing | 36.7 | 34.4 | 146.3 | 157.2 | | Total Net Revenue | 1,567.9 | 1,540.8 | 6,631.4 | 6,443.6 | Global Retail Store Network As of March 30, 2024, the company operated 564 directly operated stores and 699 franchised stores globally, alongside 195 licensed stores Global Retail Store Network (as of March 30, 2024) | Store Type | March 30, 2024 | April 1, 2023 | | :--- | :--- | :--- | | Ralph Lauren Stores | 232 | 209 | | Outlet Stores | 332 | 344 | | Total Directly Operated Stores | 564 | 553 | | Franchised Stores | 699 | 722 | | Licensed Stores | 195 | 182 | - The number of Ralph Lauren stores in Asia significantly increased from 118 to 138[56] Non-U.S. GAAP Financial Measures Reconciliation This section provides reconciliations of non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP measures for various financial metrics Reconciliation Tables The company provides reconciliation tables for non-U.S. GAAP financial measures to U.S. GAAP for Q4 and full FY2024, covering net revenue, gross profit, operating income, net income, and EPS Q4 FY2024 Non-GAAP Reconciliation (million USD, except per share data) | Item | Reported | Adjustments | Adjusted (Reported) | Adjusted (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 1,567.9 | — | 1,567.9 | 1,585.9 | | Gross Profit | 1,043.7 | — | 1,043.7 | 1,060.8 | | Operating Income | 107.8 | 29.2 | 137.0 | 142.4 | | Net Income | 90.7 | 21.1 | 111.8 | - | | Diluted EPS | 1.38 | 0.33 | 1.71 | - | Full Year FY2024 Non-GAAP Reconciliation (million USD, except per share data) | Item | Reported | Adjustments | Adjusted (Reported) | Adjusted (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 6,631.4 | — | 6,631.4 | 6,619.0 | | Gross Profit | 4,431.8 | (4.5) | 4,427.3 | 4,432.2 | | Operating Income | 756.4 | 69.9 | 826.3 | 819.8 | | Net Income | 646.3 | 39.5 | 685.8 | - | | Diluted EPS | 9.71 | 0.60 | 10.31 | - | - Adjustments primarily include restructuring-related charges, charitable contributions, rent and occupancy costs related to exited real estate, Next Great Chapter transformation plan charges, and bad debt reserve adjustments related to Russia[65][66] Explanation of Non-U.S. GAAP Measures The company uses constant currency and adjusted non-U.S. GAAP financial measures to assess operating performance, excluding foreign exchange fluctuations and non-recurring items for better period-over-period comparison - Constant currency measures translate current and prior-year reported amounts at a single foreign exchange rate to assess business performance excluding the impact of foreign currency fluctuations[67] - Non-U.S. GAAP measures exclude non-comparable period items, aiding investors in comparing operating performance[68] - The company cannot provide a complete reconciliation of its full year and Q1 FY2025 non-U.S. GAAP financial measures to U.S. GAAP due to the uncertain timing and amount of future restructuring-related and other charges[70]