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• Revenue Growth: 10% increase in Q4, exceeding the 6% to 7% outlook.

• Full Year Revenue Growth: 8% increase, with record revenues in Europe and Asia.

• Adjusted Operating Profit Growth: 24% increase for the full year.

• Free Cash Flow: $1 billion generated, with $625 million returned to shareholders.

• Adjusted Gross Margin: Expanded 260 basis points to 69.2% in Q4.

• Adjusted Operating Margin: Expanded 240 basis points to 11.1% in Q4.

• Comp Sales Growth: 13% increase in Q4, with strong growth in digital and brick-and-mortar stores.

• North America Revenue Growth: 6% increase in Q4.

• Europe Revenue Growth: 16% increase in Q4.

• Asia Revenue Growth: 13% increase in Q4.

• Net Inventory: Up 5% year-over-year.

• Store Openings: 83 new own and partner stores opened, focused largely in Asia.

• Annual Dividend Increase: 10% increase authorized by the Board of Directors.

• Share Repurchase Authorization: Additional $1.5 billion authorized for share repurchases.

• Warning! GuruFocus has detected 5 Warning Sign with MPZZF.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ralph Lauren Corp (NYSE:RL) reported fourth-quarter results that exceeded expectations on both the top and bottom line, with 10% revenue growth driven by strong performance across all geographies and channels.

• The company achieved 8% top-line growth for the full year, including record revenues for its international businesses in Europe and Asia, which now comprise the majority of total company revenues.

• Adjusted operating profits grew 24%, surpassing expectations, even as the company invested in long-term strategic priorities and shareholder returns.

• Ralph Lauren Corp (NYSE:RL) added a record 5.9 million new consumers to its direct-to-consumer businesses, with a high single-digit increase from the previous year, led by younger, female, and less price-sensitive cohorts.

• The company increased its social media followers by low double digits, surpassing 65 million, driven by platforms like Li, threads, WeChat, Doyin, and TikTok.

Negative Points

• The global operating environment has become more challenging with uncertainty around tariffs and broader consumer behavior, impacting future growth projections.

• Despite strong performance, Ralph Lauren Corp (NYSE:RL) remains cautious about the second half of fiscal '26 due to potential macroeconomic challenges, particularly in North America.

• The company plans to exit about 90 department store doors in fiscal '26, which could impact its wholesale revenue growth.

• Tariffs and inflationary pressures are expected to be headwinds, particularly affecting gross margins in the second half of the year.

• Ralph Lauren Corp (NYSE:RL) anticipates a more uncertain global operating environment, with potential impacts from tariffs, weakening consumer confidence in the US, and increased risk of a broader consumer pullback.