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Mar 30, 2024
Ralph Lauren Q4 2024 Earnings Report
Ralph Lauren's Q4 2024 revenue exceeded expectations, with a 2% increase on a reported basis and a 3% increase in constant currency. The company reported EPS of $1.38 and adjusted EPS of $1.71.
Key Takeaways
Ralph Lauren reported a 2% increase in revenue to $1.6 billion for Q4 2024, with EPS at $1.38 and adjusted EPS at $1.71. The company's gross margin expanded by 480 basis points, driven by lower freight costs, favorable channel and geographic mix shifts, and AUR growth. Looking ahead, the company introduced outlook for Fiscal 2025 Net Revenue Growth of Low-Single Digits on Both a Reported and Constant Currency Basis, with Gross and Operating Margin Expansion on Track with Long-Term Next Great Chapter: Accelerate Targets.
Q4 revenue increased by 2% on a reported basis and 3% in constant currency, exceeding expectations.
Global direct-to-consumer comparable store sales increased 6%, driven by brand elevation and double-digit growth in average unit retail (AUR).
Gross and operating margin expansion exceeded expectations, with reported earnings per share growth of 28% and adjusted EPS growth of 24%.
Outlook for Fiscal 2025 includes net revenue growth of low-single digits and gross and operating margin expansion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects revenues to increase low-single digits to last year on a constant currency basis, centering on about 2% to 3%. Foreign currency is expected to negatively impact revenue growth by approximately 90 basis points in Fiscal 2025. The company expects operating margin for Fiscal 2025 to expand approximately 100 to 120 basis points in constant currency, driven by gross margin expansion and operating expense leverage.
Positive Outlook
- Revenues to increase low-single digits to last year on a constant currency basis, centering on about 2% to 3%.
- Operating margin for Fiscal 2025 to expand approximately 100 to 120 basis points in constant currency.
- Gross margin is expected to increase about 50 to 100 basis points in constant currency
- AUR growth
- Reduced cotton costs and favorable geographic and channel mix shift
Challenges Ahead
- Foreign currency is expected to negatively impact revenue growth by approximately 90 basis points in Fiscal 2025.
- Foreign currency is expected to negatively impact gross and operating margins by approximately 30 basis points in Fiscal 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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