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Jun 29, 2024
Ralph Lauren Q1 2025 Earnings Report
Ralph Lauren's first quarter of fiscal year 2025 showed revenue increase and earnings per share growth.
Key Takeaways
Ralph Lauren reported a 1% increase in revenue and a significant rise in earnings per share for the first quarter of fiscal 2025, driven by growth in Europe and Asia and strong direct-to-consumer performance. The company reaffirmed its full-year outlook, expecting low-single-digit revenue growth and adjusted operating margin expansion.
Revenue increased by 1% on a reported basis and 3% in constant currency, exceeding expectations due to growth in Europe and Asia.
Global Direct-to-Consumer comparable store sales grew by 5%, with positive retail comps across all regions.
Adjusted gross and operating margin expansion surpassed expectations, driven by brand elevation and expense discipline.
The company reaffirmed its full-year fiscal 2025 outlook, projecting low-single-digit revenue growth and adjusted operating margin expansion of 100 to 120 basis points in constant currency.
Ralph Lauren
Ralph Lauren
Ralph Lauren Revenue by Segment
Ralph Lauren Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
Ralph Lauren reaffirmed its full year fiscal 2025 outlook, expecting revenues to increase approximately low-single digits and operating margin to expand approximately 100 to 120 basis points in constant currency.
Positive Outlook
- Revenues are expected to increase approximately low-single digits to last year on a constant currency basis, centering on around 2% to 3%.
- Operating margin for Fiscal 2025 is expected to expand approximately 100 to 120 basis points in constant currency, driven by gross margin expansion and operating expense leverage.
- Gross margin is expected to increase approximately 50 to 100 basis points in constant currency.
- For the second quarter, the Company expects constant currency revenues to grow approximately low- to mid-single digits to last year, in a range centered around 3% to 4%.
- Operating margin for the second quarter is expected to expand approximately 80 to 120 basis points in constant currency, with roughly 110 to 130 basis points of gross margin expansion more than offsetting higher planned operating expenses to support key marketing campaigns in the quarter.
Challenges Ahead
- Foreign currency is now expected to negatively impact revenue growth by approximately 150 basis points in Fiscal 2025.
- Foreign currency is now expected to negatively impact gross and operating margins by approximately 40 basis points.
- Foreign currency is expected to negatively impact revenue growth by approximately 160 basis points for the second quarter.
- Foreign currency is expected to negatively impact gross and operating margins by approximately 40 and 50 basis points, respectively, in the second quarter.
- The Company's full year Fiscal 2025 tax rate is now expected to be in the range of approximately 22% to 23%, increasing from 19% in the prior year, following discrete tax benefits recognized in the prior year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income