| Metric (USD Million) | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America        | **937.6**  **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]**  | **674.3**  **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:16]**  | **631.7**  **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** **[0001037038-23-000023_rl-20230701.htm:27]** **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:11]**  | **717.8**  **[0001037038-23-000028_rl-20230930ex991xpressrele.htm:12]**  | **933.3**  **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]**  | **667.7**  **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]**  | **608.2**  **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:13]**  | **739.5**  **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]**  |
| Europe               | **469.3**  **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]**  | **467.4**  **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:16]**  | **450.5**  **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** **[0001037038-23-000023_rl-20230701.htm:27]** **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:11]**  | **526.8**  **[0001037038-23-000028_rl-20230930ex991xpressrele.htm:12]**  | **521.5**  **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]**  | **469.2**  **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]**  | **479.1**  **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:13]**  | **565.9**  **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]**  |
| Asia                 | **386.2**  **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]**  | **346.1**  **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:16]**  | **377.5**  **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** **[0001037038-23-000023_rl-20230701.htm:27]** **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:11]**  | **348.4**  **[0001037038-23-000028_rl-20230930ex991xpressrele.htm:12]**  | **446.4**  **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]**  | **394.3**  **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]**  | **390.9**  **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:13]**  | **380.2**  **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]**  |
| Other Segments       | **39.2**  **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]**   | **34.9**  **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:16]**   | **36.8**  **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** **[0001037038-23-000023_rl-20230701.htm:27]** **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:11]**   | **40.0**  **[0001037038-23-000028_rl-20230930ex991xpressrele.htm:12]**   | **32.8**  **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]**   | **36.7**  **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]**   | **34.0**  **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:13]**   | **40.4**  **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]**  |
| Total Revenue        | **1,832.3**  **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]**  | **1,522.7**  **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:16]**  | **1,496.5**  **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** **[0001037038-23-000023_rl-20230701.htm:27]** **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:11]**  | **1,633.0**  **[0001037038-23-000028_rl-20230930ex991xpressrele.htm:12]**  | **1,934.0**  **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]**  | **1,567.9**  **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]**  | **1,512.2**  **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:13]**  | **1,726.0**  **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]**  |

12fd9ea218d0f48da40ef7286096f031d8153f401949f1830a002941482c60e6

Digital Commerce Europe

Brick and Mortar Europe

Digital Commerce Asia

Brick and Mortar Asia

1a69fb55a7e52d4f67595f48890c09cc3cdbed42aec0990b25699ffcb346b00a

Ralph Lauren Corporation (RLC) is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear & accessories, home, fragrances, and hospitality **[0001037038-24-000008_rl-20231230.htm:39]** **[0001037038-24-000029_rl-20240928.htm:31]** **[0001037038-24-000014_rl-20240330.htm:193]** **[0001037038-24-000014_rl-20240330.htm:7]**. The company operates through three primary geographic segments: North America, Europe, and Asia, with additional non-reportable segments primarily consisting of royalty revenues from global licensing alliances **[0001037038-24-000008_rl-20231230.htm:39]** **[0001037038-24-000029_rl-20240928.htm:31]** **[0001037038-24-000014_rl-20240330.htm:193]** **[0001037038-24-000014_rl-20240330.htm:7]**. RLC's diversified business model spans retail, wholesale, and licensing channels, enabling a dynamic balance across different areas and channels **[0001037038-24-000008_rl-20231230.htm:39]** **[0001037038-24-000022_rl-20240629.htm:34]** **[0001037038-24-000014_rl-20240330.htm:7]**.

1. **Apparel** - Offers a wide range of luxury clothing for men, women, and children, emphasizing timeless style and quality.
2. **Footwear & Accessories** - Provides a variety of high-end shoes, bags, belts, and other fashion accessories that complement the apparel line.
3. **Home** - Designs and markets luxury home products, including bedding, bath items, and home décor, reflecting the brand's signature style.
4. **Fragrances** - Develops and sells a collection of premium perfumes and colognes under the Ralph Lauren brand.
5. **Hospitality** - Engages in the hospitality sector, offering experiences that embody the brand's luxury lifestyle ethos.

465658bfc86e8d674eb24c1ed05445e4066bdfc34dc09611ebe67baaf5f760d1

4dc016d0ceff9e3defc8776b9d30182390a8bddec5905b01e912920e812c0f6a

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

496e295d4c1c8ea3245752597115b6999e55ec03e30a52c4ccfc4038035fc6a4

7358cc9ce720e20c28aea4b043020e92a4d96b01ea5258ee154285445664cb92

| Metric                                           | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|--------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Digital Commerce Europe                          | 12% **[0001037038-23-000009_rl-20221231.htm:57]** **[0001037038-23-000009_rl-20221231.htm:58]** | 6% **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:13]** | 8% **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** | 14% **[0001037038-23-000030_rl-20230930.htm:49]** | 12% **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]** | 11% **[0001037038-24-000014_rl-20240330.htm:92]** | 14% **[0001037038-24-000022_rl-20240629.htm:45]** | 14% **[0001037038-24-000029_rl-20240928.htm:51]** |
| Brick and Mortar Europe                          | 11% **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:2]** | 9% **[RL_3252990_5]** | 1% **[0001037038-23-000023_rl-20230701.htm:43]** | 5% **[0001037038-23-000030_rl-20230930.htm:49]** | 10% **[0001037038-24-000008_rl-20231230.htm:50]** | 13% **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:2]** | 7% **[0001037038-24-000022_rl-20240629.htm:45]** | 15% **[0001037038-24-000029_rl-20240928.htm:51]** **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:2]** |
| Total Comparable Store Sales Europe              | 11% **[0001037038-23-000009_rl-20221231.htm:57]** **[0001037038-23-000009_rl-20221231.htm:58]** | 8% **[RL_3252990_5]** | 2% **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** | 6% **[0001037038-23-000030_rl-20230930.htm:49]** | 11% **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]** | 8% **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]** | 8% **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:12]** | 15% **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]** |
| Digital Commerce Asia                            | 21% **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]** | 19% **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:13]** | 11% **[0001037038-23-000023_rl-20230701.htm:44]** | 19% **[0001037038-23-000030_rl-20230930.htm:50]** | 25% **[0001037038-24-000008_rl-20231230.htm:50]** | 19% **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]** | 21% **[0001037038-24-000022_rl-20240629.htm:46]** | 19% **[0001037038-24-000029_rl-20240928.htm:51]** |
| Brick and Mortar Asia                            | 7% **[0001037038-23-000007_rl-20221231ex991xpressrele.htm:13]** | 20% **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:2]** | 14% **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** | 7% **[0001037038-23-000028_rl-20230930ex991xpressrele.htm:12]** | 13% **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:2]** | 4% **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]** | 7% **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:12]** **[0001037038-24-000022_rl-20240629.htm:46]** **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:2]** | 10% **[0001037038-24-000029_rl-20240928.htm:51]** **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:2]** |
| Total Comparable Store Sales Asia                | 8% **[0001037038-23-000009_rl-20221231.htm:57]** **[0001037038-23-000009_rl-20221231.htm:59]** | 20% **[0001037038-23-000013_rl-20230401xex991xpressrel.htm:13]** | 13% **[0001037038-23-000021_rl-20230701ex991xpressrele.htm:12]** | 8% **[0001037038-23-000030_rl-20230930.htm:50]** | 14% **[0001037038-24-000006_rl-20231230ex991xpressrele.htm:12]** | 10% **[0001037038-24-000012_rl-20240330xex991xpressrel.htm:14]** | 9% **[0001037038-24-000020_rl-20240629ex991xpressrele.htm:12]** | 11% **[0001037038-24-000027_rl-20240928ex991xpressrele.htm:12]** |

1ec2e4dd0e85d5e94df6f80cfee1f52f900ad2db615076edad4f969e6c49ff23

1. Given the recent growth in **AUR** (Average Unit Retail) and your comments on pricing power, how confident are you in maintaining this pricing strategy amid a potentially less favorable pricing environment, and what risks do you foresee if consumer demand weakens?  **[RL_3406521_10]** **[RL_3406521_8]** 

2. Could you elaborate on the specific steps you're taking to navigate the ongoing volatility in the **China** market, including geopolitical and macroeconomic uncertainties, and how these factors might affect your long-term growth ambitions in the region?  **[RL_3406521_17]** 

3. With **North America** returning to growth and plans to open new full-price stores, how are you balancing expansion with the risks of over-saturation or changing consumer behavior in the U.S., and what metrics are you monitoring to ensure prudent store growth?  **[RL_3406521_10]** **[RL_3406521_12]** 

4. Despite strong international performance, particularly in **Europe**, how sustainable is this growth given the dynamic operating environment and potential headwinds in wholesale channels, and what strategies are in place to mitigate risks from shifting consumer trends or economic conditions?  **[RL_3406521_6]** **[RL_3406521_9]** 

5. Operating margins have been expanding, but considering the ongoing investments in brand elevation and increased marketing spend, what is your outlook on **margin expansion** in the coming years, and how might rising costs impact this trajectory?  **[RL_3406521_9]** **[RL_3406521_8]** **[RL_3406521_2]** 

aed30e8b7770d8c14a02b93bc382c5743a63479c70bcd3093d278b04e5bbc947

North America

Europe

Asia

Other Segments

- Americas

- Europe

- Asia

Total Revenue

18ea5e2a2145c04a90edb6165ac08a5a9b76742ce5d549465fbb972f27506433

### Q2 2025 Earnings Call
- **Issued Period**: Q2 2025
- **Guided Period**: FY 2025, Q3 2025, Q4 2025
- **Guidance**:
  1. **Revenue Growth**: FY 2025 constant currency revenues expected to increase by **3% to 4%**; Q3 2025 revenues expected to increase by **3% to 4%** in constant currency  **[RL_3406521_7]** **[RL_3406521_8]** .
  2. **Operating Margin**: Expected to expand by **110 to 130 basis points**, reaching **13.6% to 13.8%**  **[RL_3406521_7]** .
  3. **Gross Margin**: Expected to expand by **80 to 120 basis points**  **[RL_3406521_8]** .
  4. **Foreign Currency Impact**: Negative impact on FY 2025 revenue growth by **40 to 60 basis points**; Q3 2025 benefit by **10 to 50 basis points**  **[RL_3406521_7]** **[RL_3406521_8]** .
  5. **Tax Rate**: FY 2025 tax rate expected to be **22% to 23%**; Q3 2025 rate around **22%**  **[RL_3406521_8]** .
  6. **Capital Expenditures (CapEx)**: Expected to be **$250 million to $300 million** for FY 2025  **[RL_3406521_8]** .
  7. **Marketing Expenses**: Expected to be about **7% of sales** for FY 2025  **[RL_3406521_4]** .
  8. **Adjusted Operating Expenses**: Grew 7% to **55.5% of sales**  **[RL_3406521_4]** .
  9. **Average Unit Retail (AUR) Growth**: Expected to grow mid-single digits in the second half of FY 2025  **[RL_3406521_4]** .
  10. **Inventory**: Expected to align with revenue growth by the end of FY 2025  **[RL_3406521_7]** .

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Revenue Growth**: FY 2025 constant currency revenues expected to increase **2% to 3%**; Q2 2025 revenues expected to increase **3% to 4%**  **[RL_3396985_6]** **[RL_3396985_7]** .
  2. **Operating Margin**: FY 2025 expected to expand **100 to 120 basis points** to **13.5% to 13.7%**; Q2 2025 expected to expand **80 to 120 basis points**  **[RL_3396985_7]** .
  3. **Gross Margin**: FY 2025 expected to expand **50 to 100 basis points**; Q2 2025 expected to expand **110 to 130 basis points**  **[RL_3396985_7]** .
  4. **Tax Rate**: FY 2025 expected to be **22% to 23%**; Q2 2025 expected to be **21% to 22%**  **[RL_3396985_8]** .
  5. **Foreign Currency Impact**: FY 2025 negative impact on revenue by **150 basis points**; margins by **40 basis points**  **[RL_3396985_6]** **[RL_3396985_7]** .
  6. **Marketing Investments**: Expected to grow faster in the first half of FY 2025  **[RL_3396985_7]** .
  7. **North America Wholesale**: Declines expected to moderate through FY 2025  **[RL_3396985_5]** .
  8. **Cotton Costs**: Expected to recapture half of the **175 basis points** benefit in FY 2025  **[RL_3396985_16]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Revenue Growth**: FY 2025 constant currency revenues expected to increase **2% to 3%**  **[RL_3390577_8]** .
  2. **Operating Margin**: Expected to expand **100 to 120 basis points** to **13.5% to 13.7%**  **[RL_3390577_9]** .
  3. **Gross Margin**: Expected to expand **50 to 100 basis points**  **[RL_3390577_9]** .
  4. **Foreign Currency Impact**: Negative impact on revenue by **90 basis points**; margins by **30 basis points**  **[RL_3390577_9]** .
  5. **Tax Rate**: Expected to be **23% to 24%**  **[RL_3390577_9]** .
  6. **Capital Expenditures**: Expected to be **$300 million to $325 million**  **[RL_3390577_9]** .
  7. **DTC Growth**: Expected to lead growth  **[RL_3390577_11]** .
  8. **Wholesale Channel**: Declines expected to moderate  **[RL_3390577_7]** .
  9. **SG&A Leverage**: Implies **30 basis points** of leverage on **3%** growth  **[RL_3390577_14]** .
  10. **First Quarter Specifics**: Revenues up slightly; operating margin expands **60 to 80 basis points**; gross margin expands **140 to 180 basis points**; foreign currency negative impact **40 basis points**  **[RL_3390577_9]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024, Q4 2024
- **Guidance**:
  1. **Operating Margin**: Q4 2024 expected to expand **350 to 400 basis points**; full-year neutral impact from foreign currency  **[RL_3372443_7]** **[RL_3372443_6]** .
  2. **Tax Rate**: FY 2024 expected to be **19% to 20%**; Q4 2024 **22% to 23%**  **[RL_3372443_7]** .
  3. **Capital Expenditures**: Expected to be **$200 million to $225 million**  **[RL_3372443_7]** .
  4. **Revenue Growth**: FY 2024 expected to increase **2%**; Q4 2024 expected to increase **2%**  **[RL_3372443_6]** .
  5. **Foreign Currency Impact**: Q4 2024 negative impact **160 basis points**; full-year benefit **10 basis points**  **[RL_3372443_6]** .
  6. **Gross Margin Expansion**: Expected **140 to 180 basis points** for FY 2024  **[RL_3372443_6]** .
  7. **Marketing Expenses**: Expected to be **7%** of sales  **[RL_3372443_5]** .
  8. **Inventory Levels**: Expected to end FY 2024 below prior year levels  **[RL_3372443_6]** .
  9. **Fourth Quarter Regional Expectations**: North America improvement; Europe impacted by timing; Asia growth expected  **[RL_3372443_6]** .

9add532b947f51e2510a3457fc2d0a533211edab576a5df8e8f5b0ba2608ac6d

| Name                  | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ralph Lauren          | Executive Chairman and Chief Creative Officer                            | 1967               | **Ralph Lauren** is the founder of Ralph Lauren Corporation, having established the business in **1967**. He has been a director since before its IPO in **1997**. He served as Chairman and CEO until November **2015**, transitioning to his current roles. His leadership has been key in defining the company's image and direction  **[0001037038-24-000014_rl-20240330.htm:37]** **[0001140361-24-030914_ny20024311x1_def14a.htm:23]** . |
| Patrice Louvet        | President and Chief Executive Officer                                    | July 2017          | **Patrice Louvet** has served as the President and CEO since **July 2017**. Previously, he was Group President, Global Beauty, at Procter & Gamble Co. He has held various senior leadership positions at P&G and has a background as a Naval Officer in the French Navy  **[0001037038-24-000014_rl-20240330.htm:37]** **[0001037038-23-000015_rl-20230401.htm:39]** **[0001140361-24-030914_ny20024311x1_def14a.htm:24]** **[0001140361-23-030952_ny20008517x500_def14a.htm:19]** .                                                      |
| Jane Hamilton Nielsen | Chief Operating Officer (until March 29, 2025)                           | March 2019         | **Jane Hamilton Nielsen** has been the COO since March 2019. She was also the CFO from September 2016 until May 23, 2024. Her tenure at Ralph Lauren will conclude on March 29, 2025  **[0001037038-24-000014_rl-20240330.htm:128]** **[0001037038-23-000015_rl-20230401.htm:39]** . Prior to Ralph Lauren, she was the CFO of Coach, Inc. and held senior financial roles at PepsiCo  **[0001037038-24-000014_rl-20240330.htm:38]** **[0001037038-23-000015_rl-20230401.htm:39]** .                                      |
| Justin Picicci        | Chief Financial Officer                                                  | May 23, 2024       | **Justin Picicci** was appointed CFO effective **May 23, 2024**. He has nearly 20 years of experience at Ralph Lauren, serving in various senior finance roles globally. His transition into the CFO role was part of a leadership change announced on the same date  **[0001037038-24-000014_rl-20240330.htm:128]** **[RL_3390577_5]** .                                                                 |
| David Lauren          | Chief Branding and Innovation Officer, Strategic Advisor to the CEO      | April 2022         | **David Lauren** has been in his current role since **April 2022**. He was previously the Chief Innovation Officer and has been a director since **August 2013**. He joined Ralph Lauren in 2000 and has held numerous leadership roles, focusing on advertising, marketing, and technology initiatives  **[0001037038-24-000014_rl-20240330.htm:38]** **[0001140361-24-030914_ny20024311x1_def14a.htm:24]** **[0001037038-24-000014_rl-20240330.htm:70]** **[0001140361-23-030952_ny20008517x500_def14a.htm:20]** .                        |
| Halide Alagöz         | Chief Product Officer                                                    | March 2021         | **Halide Alagöz** has been the Chief Product Officer since **March 2021**. She joined Ralph Lauren as the Corporate Senior Vice President of Global Manufacturing and Sourcing in **2016**. Before Ralph Lauren, she worked at H&M Corporation for 18 years, most recently as the Head of Purchasing in Hong Kong  **[0001037038-24-000014_rl-20240330.htm:38]** **[0001037038-23-000015_rl-20230401.htm:40]** .                     |

98da4994586d4792a981d1cf713335d587aecb20685227fa08c1e410735a7a46

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | February 2, 2022  **[0001037038-24-000029_rl-20240928.htm:66]** **[0001037038-24-000029_rl-20240928.htm:27]**  |
| End Date/Duration        | N/A                |
| Total additional amount  | **$1.500 billion**  **[0001037038-24-000029_rl-20240928.htm:66]** **[0001037038-24-000029_rl-20240928.htm:27]**  |
| Remaining authorization amount | **$502 million** as of September 28, 2024  **[0001037038-24-000029_rl-20240928.htm:66]** **[0001037038-24-000029_rl-20240928.htm:27]**  |
| Details                  | The program allows the repurchase of up to an additional $1.500 billion of Class A common stock, excluding related excise taxes. The purpose is to return value to shareholders, manage capital structure, and potentially improve financial metrics.  **[0001037038-24-000022_rl-20240629.htm:55]** **[0001037038-24-000029_rl-20240928.htm:66]** **[0001037038-23-000030_rl-20230930.htm:65]** **[0001037038-24-000008_rl-20231230.htm:66]** **[0001037038-23-000023_rl-20230701.htm:54]** **[0001037038-24-000014_rl-20240330.htm:110]** **[0001037038-23-000015_rl-20230401.htm:111]** **[0001037038-23-000009_rl-20221231.htm:74]** **[0001037038-22-000031_rl-20221001.htm:76]** **[0001037038-23-000009_rl-20221231.htm:29]**  |

1d07225e459b1d12204b91d5b25d0685bfdbfeff157e07f82673445273ee007b

Retail

Wholesale

Licensing

Other Non-Reportable Segments

7f597016fde9047879d4a2a38dc4b3bb29090968bfd3af0cb0973de29332cd8a

**Quarterly guidance for Q3 2025:**
- **Revenue Growth**: 3% to 4%  **[RL_3406521_7]** **[RL_3406521_8]**  (no prior guidance)
- **Foreign Currency Impact**: 10 to 50 basis points benefit  **[RL_3406521_7]** **[RL_3406521_8]**  (no prior guidance)
- **Tax Rate**: ~22%  **[RL_3406521_8]**  (no prior guidance)

**Quarterly guidance for Q4 2025:**
(No metrics given)

**Annual guidance for FY 2025:**
- **Revenue Growth**: 3% to 4%  **[RL_3406521_7]** **[RL_3406521_8]**  (raised from 2% to 3%  **[RL_3396985_6]** **[RL_3396985_7]** )  
- **Operating Margin**: 13.6% to 13.8%  **[RL_3406521_7]**  (raised from 13.5% to 13.7%  **[RL_3396985_7]** )  
- **Gross Margin**: expand 80 to 120 basis points  **[RL_3406521_8]**  (raised from expand 50 to 100 basis points  **[RL_3396985_7]** )  
- **Foreign Currency Impact**: negative 40 to 60 basis points  **[RL_3406521_7]** **[RL_3406521_8]**  (raised from negative 150 basis points  **[RL_3396985_6]** **[RL_3396985_7]** )  
- **Tax Rate**: 22% to 23%  **[RL_3406521_8]**  (no change from prior guidance  **[RL_3396985_8]** )  
- **Capital Expenditures (CapEx)**: $250 million to $300 million  **[RL_3406521_8]**  (no prior guidance)  
- **Marketing Expenses**: ~7% of sales  **[RL_3406521_4]**  (no prior guidance)  
- **Adjusted Operating Expenses**: grew 7% to 55.5% of sales  **[RL_3406521_4]**  (no prior guidance)  
- **AUR Growth**: mid-single digits in the second half of FY 2025  **[RL_3406521_4]**  (no prior guidance)  
- **Inventory**: expected to align with revenue growth by end of FY 2025  **[RL_3406521_7]**  (no prior guidance)  

7e32f670de1e281d9da63ab542013367aa2bb3d26ed7662cf17a309e8b2589b5

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2008  **[0001037038-24-000014_rl-20240330.htm:200]**  | Present  | Current auditor   |

79ccf1755bdab8349f5190244040cc3ba74b8cd0010e913be98f7cf65141e0b3

5619111c28c1f82c1f56d4703d7d2617559b5ae8a62b23ac34401c3994028711

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,726 million (+6% YoY)  **[0001037038-23-000030_rl-20230930.htm:33]** **[0001037038-24-000029_rl-20240928.htm:32]**   
- Retail: $1,096.4 million (+**10%** YoY)  **[0001037038-23-000030_rl-20230930.htm:9]** **[0001037038-24-000029_rl-20240928.htm:9]**   
- Europe: $565.9 million (+7% YoY)  **[0001037038-23-000030_rl-20230930.htm:33]** **[0001037038-24-000029_rl-20240928.htm:32]**   
- Asia: $380.2 million (+**9%** YoY)  **[0001037038-23-000030_rl-20230930.htm:33]** **[0001037038-24-000029_rl-20240928.htm:32]**   
- Operating Income: $178.9 million (+**9%** YoY)  **[0001037038-23-000030_rl-20230930.htm:2]** **[0001037038-24-000029_rl-20240928.htm:1]**   
- EPS (Basic): $2.36 (+6% YoY)  **[0001037038-23-000030_rl-20230930.htm:2]** **[0001037038-24-000029_rl-20240928.htm:1]**   

bae9b8494ed49c2b39ee2fc5ffb9b8ffa46ee739a84c1405c667e566065ab69e

4b335191f11eda919d4cb1898c368712c972ced2af13b80815160c917996c4cc

52add61f4a4c367e1f84761cc6eb5ea448273f1f04ce28e5c027bbc486c4b6fe

b5d738130842e9b70f76ee3e1feb34c808b5e3ecc579776101470b7c0da5f479

| Year | Amount Due (millions) | Debt Type            | Interest Rate (%) | % of Total Debt |
|------|-----------------------|----------------------|-------------------|-----------------|
| 2025 | 400                   | 3.750% Senior Notes  | 3.750             | 35.0% = (400 / 1,141.5) * 100 **[0001037038-24-000029_rl-20240928.htm:1]** **[0001037038-24-000029_rl-20240928.htm:18]** **[0001037038-24-000029_rl-20240928.htm:19]** |
| 2030 | 750                   | 2.950% Senior Notes  | 2.950             | 65.7% = (750 / 1,141.5) * 100 **[0001037038-24-000029_rl-20240928.htm:1]** **[0001037038-24-000029_rl-20240928.htm:18]** **[0001037038-24-000029_rl-20240928.htm:19]** |

98cfddb1672412cba1ee0aa950d1a0d5ea49eb236b85461fc92a13e8b30d964d

- **Continued softness in the North America wholesale channel, with demand down modestly versus last year, and a cautious outlook due to consumer spending headwinds.**  **[RL_3396985_10]**
- **Planned closure of approximately 45 department store doors in North America this fiscal year, and up to 150 door exits in the future, indicating challenges in the wholesale segment and consolidation of physical presence.**  **[RL_3396985_14]**
- **Expectations of incremental pressures from product costs in the second half of fiscal 2025, along with foreign exchange headwinds due to a stronger dollar, which could negatively impact margins and profitability.**  **[RL_3396985_10]** **[RL_3396985_9]**

16552db2ce1dfaf0b681c0f1f4b0e84ccd0ac6498d0c83596095f7f5f01896d0

1. **Maintaining Guidance Amid Macro Headwinds**  
   **Q:** Why maintain full-year guidance despite macro challenges?  
   **A:** Despite volatility, RL maintained its full-year guidance, aligning with their 3-year commitments. They remain cautious due to global macro pressures, North America wholesale softness, and product cost pressures in the second half. RL relies on its durable strategy, focusing on its strong brand, diversified growth drivers, clean inventories, and a "fortress balance sheet" to deliver on plans even if the environment worsens.  **[RL_3396985_10]** 

2. **Gross Margin Expansion Drivers**  
   **Q:** What are the remaining opportunities for product margin?  
   **A:** RL continues to see strong gross margin expansion, driven by favorable product mix and shifts towards DTC and Asia. They anticipate mid-single-digit AUR growth from product and marketing elevation. RL is recapturing product costs, expecting about **175 basis points** of benefit over the next two years, with half this year, weighted to the second half. Potential headwinds include freight costs and FX, but RL feels well-positioned with durable gross margin drivers.  **[RL_3396985_12]** 

3. **North America Wholesale Trends**  
   **Q:** How is North America wholesale expected to perform?  
   **A:** RL anticipates North America wholesale to stabilize, with sell-in aligning more closely with sell-out trends of down low single digits as the year progresses. Q1 wholesale revenue was pressured by shipment timing shifts and reduced off-price sales. RL is focusing on top doors, digital channels, and clean inventories while continuing to prune lower-tier doors, expecting to close **45** this fiscal year and about **40** per year thereafter.  **[RL_3396985_10]** **[RL_3396985_14]** 

4. **Consumer Price Sensitivity**  
   **Q:** Is there increased price sensitivity among customers?  
   **A:** RL's full-price business is performing well, with resilient core customers and strong growth in full-price stores. While the value-oriented consumer segment remains pressured, RL employs targeted strategies to engage them without sacrificing quality of sales. AUR increased across all regions, indicating customers continue to perceive value in RL's offerings.  **[RL_3396985_13]** 

5. **Performance and Sustainability in Europe**  
   **Q:** How sustainable are European trends amid macro caution?  
   **A:** RL is encouraged by strong consumer demand in Europe, with sales growth in all markets except the UK and a strong DTC comp. Despite a promotional environment, RL reduced promotions, improving quality of sales. Domestic demand drives the business, with tourism as a tailwind. While cautious about the macro environment, RL continues to forecast growth in Europe.  **[RL_3396985_9]** 

6. **SG&A Leverage Expectations**  
   **Q:** What drives SG&A leverage in the back half?  
   **A:** RL's fiscal 2025 guidance implies about **20 basis points** of SG&A leverage, weighted to the second half due to the timing of marketing activations and scaling of key investments. Marketing rates are higher in the first half due to major events but are expected to decrease later. RL plans to balance profitability contributions between gross margin expansion and SG&A leverage, continuing beyond fiscal 2025.  **[RL_3396985_11]** 

7. **Digital Growth and DTC Strategies**  
   **Q:** Outlook for DTC, digital vs. brick-and-mortar?  
   **A:** Growing the digital business is a key priority. RL expects balanced DTC growth between stores and digital. In Q1, global digital sales grew, led by international markets. North America owned digital comps were down **4%** due to softer traffic, but RL is investing in digital commerce and technology to improve performance, expecting improvement notably in the second half.  **[RL_3396985_17]** 

8. **Growth in High Potential Categories**  
   **Q:** Progress and outlook in women's apparel, outerwear, handbags?  
   **A:** RL is excited about these categories, which outpaced total company growth. Women's apparel saw double-digit growth and market share gains, driven by core products. Outerwear continues strong performance, expanding beyond fall and winter. Handbags show momentum, especially with the Polo ID collection recognized by celebrities like Jennifer Lawrence. RL expects these categories to consistently outperform the company's overall trend.  **[RL_3396985_15]** 

9. **Retail Channel Performance**  
   **Q:** How did outlet stores perform vs. full-price?  
   **A:** RL's full-price stores were standouts globally, driven by traffic and strong growth. Outlet comps were stable with AUR growth and consistent conversion trends. In North America, outlet growth was consistent after adjusting for Easter timing shifts. RL expects continuation of these trends but anticipates some pressure in Q3 due to a shorter holiday selling window.  **[RL_3396985_16]** 

acabaaa6657fd4fcf652049d756380d51d0d83a06b71199ae9edc1afd1c9f72e

1. **Fiscal '25 Guidance**  
   **Q:** How will you maintain growth amid global challenges?  
   **A:** Despite tough macro conditions, we delivered at the high end of our fiscal '24 guidance and remain on track to achieve our **15% operating margin** at constant currency.  **[RL_3390577_11]**  Our strategy is working, focusing on brand elevation, DTC growth, and regional expansion, particularly in Asia and Europe.  **[RL_3390577_11]** 

2. **North America Outlook**  
   **Q:** Can you reach 15% margin target if wholesale stays weak?  
   **A:** We are on track to achieve our **15% constant currency operating margin** this year, even with modest declines in North America wholesale.  **[RL_3390577_12]**  North America wholesale now represents about **16% of our business**, down from 25%, reducing its impact.  **[RL_3390577_12]**  We expect DTC to continue leading growth with healthy comps across stores and digital.  **[RL_3390577_12]** 

3. **Average Unit Retail (AUR) Growth**  
   **Q:** What's the outlook for AUR growth this year?  
   **A:** We are confident in continuing AUR growth through brand, channel, and geographic mix.  **[RL_3390577_12]**  We expect AUR to grow at a **mid-single-digit** rate  **[RL_3390577_12]** , aided by cotton cost benefits and productivity improvements, reducing the need for like-for-like price increases.  **[RL_3390577_12]** 

4. **China and Asia Growth**  
   **Q:** How is China performing, and what's the outlook?  
   **A:** China led our growth in Asia, with double-digit increases even on top of strong prior-year comparisons.  **[RL_3390577_18]**  Despite consumer sentiment challenges, we expect China to continue leading company growth, with Asia overall projected to grow at a **high single-digit** rate.  **[RL_3390577_18]** 

5. **SG&A Leverage**  
   **Q:** How will SG&A trend relative to revenue growth?  
   **A:** Our fiscal '25 guidance implies about **30 basis points** of SG&A leverage on approximately 3% constant currency top-line growth.  **[RL_3390577_13]**  After higher marketing expenses in Q1 due to the fashion show, SG&A growth will be below revenue growth for the rest of the year.  **[RL_3390577_13]** 

6. **Gross Margin Expansion**  
   **Q:** What are the drivers of gross margin expansion?  
   **A:** We expect gross margin to expand by **50 to 100 basis points** in fiscal '25  **[RL_3390577_16]** , primarily due to lower cotton costs.  **[RL_3390577_16]**  AUR growth, favorable channel and geographic mix, and reduced discounts will also contribute, offsetting some pressures from higher labor costs and inflation in non-cotton materials.  **[RL_3390577_16]** 

7. **DTC vs. Wholesale Growth**  
   **Q:** How do you see DTC channel growth versus wholesale?  
   **A:** We expect DTC to lead growth with mid-single-digit increases across brick-and-mortar and digital channels.  **[RL_3390577_11]**  North America wholesale is expected to decline but improve from a 10% drop to down low to mid-single digits, aligning with sell-out trends.  **[RL_3390577_11]** **[RL_3390577_12]** 

8. **Europe Performance**  
   **Q:** What's driving growth in Europe amid challenges?  
   **A:** Despite macro headwinds, Europe outperformed expectations due to strong brand positioning and momentum across channels.  **[RL_3390577_11]**  DTC growth is strong, and wholesale is expected to grow at a low single-digit rate, despite some quarterly volatility due to shipment timing.  **[RL_3390577_11]** 

9. **Young Consumer Traction**  
   **Q:** How are you attracting younger consumers?  
   **A:** Younger consumers are leading our new customer growth, with over **1 million** new customers this quarter and **5.3 million** for the fiscal year.  **[RL_3390577_16]**  Targeted marketing in gaming and celebrity endorsements are resonating, and Net Promoter Scores among younger consumers are increasing.  **[RL_3390577_16]** 

10. **Outlet vs. Full-Price Stores**  
    **Q:** How does growth compare between outlets and full-price stores?  
    **A:** Full-price stores have led growth in the past two years, but investments in outlet stores have narrowed the gap.  **[RL_3390577_14]**  We expect this trend to continue, with better trends in outlets contributing without slowing full-price growth.  **[RL_3390577_14]** 

febad39a0793dfc2134e12804743563397a216fa6be6d84e01f5a2fb683039c1

1. **Maintaining Momentum and Margin Targets**  
   **Q:** How will you maintain momentum and achieve margin targets?  
   **A:** We are confident in maintaining our momentum due to our resilient and differentiated model, investing in our brand, iconic core products, and expanding our direct-to-consumer (DTC) channels, which now represent about **two-thirds of the company**.  **[RL_3372443_8]**  We remain firmly committed to our **15% constant currency operating margin** target  **[RL_3372443_8]** , with no constraints anticipated. Our diversified growth drivers across categories, channels, and regions, along with operational agility, support sustainable long-term growth.  **[RL_3372443_8]** 

2. **Gross Margin Drivers and Cotton Prices**  
   **Q:** What are the drivers for gross margin improvement next quarter?  
   **A:** For the fourth quarter, we expect operating margin to be up **350 to 400 basis points**, largely driven by gross margin.  **[RL_3372443_12]**  Key drivers include over **100 basis points** tailwind from freight, favorable channel and geographic mix, and reduced pressure from cotton prices.  **[RL_3372443_12]**  While cotton remains a slight headwind, its impact has significantly reduced compared to the prior **110 basis points** headwind this year.  **[RL_3372443_12]**  Average unit retail (AUR) growth also becomes a more powerful driver in gross margin.  **[RL_3372443_12]** 

3. **North America and Europe Wholesale Trends**  
   **Q:** Can you elaborate on wholesale trends in North America and Europe?  
   **A:** In North America, wholesale sell-in was down **15%**, but sell-out was down only mid-single digits with low single-digit increases in AUR.  **[RL_3372443_9]**  We expect more balance between sell-in and sell-out moving forward.  **[RL_3372443_9]**  In Europe, our business performed above expectations with solid growth in every market, despite some softness in the UK due to inflation.  **[RL_3372443_9]**  The wholesale channel in Europe is more elevated, and we see opportunities to apply best practices to North America.  **[RL_3372443_15]** 

4. **Direct-to-Consumer Growth and Store Openings**  
   **Q:** What are your plans for DTC growth and store openings?  
   **A:** We remain enthusiastic about expanding our DTC business, focusing on top **30 cities** globally.  **[RL_3372443_10]**  DTC now represents about **two-thirds of the company**, and we expect this percentage to increase over time.  **[RL_3372443_10]**  We are on track to open **about 80 stores** this year and **250 new doors** over a three-year horizon.  **[RL_3372443_10]**  Investments in service and digital capabilities are enhancing customer experience and driving growth.  **[RL_3372443_11]** **[RL_3372443_15]** 

5. **Cost Savings Program and Margin Expansion**  
   **Q:** Can you update us on your cost savings program?  
   **A:** We are on track with our **$400 million** gross savings plan.  **[RL_3372443_13]**  We delivered about one-third in fiscal '23 and will deliver another one-third in fiscal '24.  **[RL_3372443_13]**  We are disciplined in resource allocation and expect these savings to contribute to operating income margin expansion, coupled with momentum in our DTC channels.  **[RL_3372443_13]** 

6. **Growth in Women's and High-Potential Categories**  
   **Q:** How are your growth categories performing?  
   **A:** We see significant potential in women's, with women representing **56%** of our customers but less than **25%** of our business.  **[RL_3372443_14]**  We are pleased with the strong customer response in women's, outerwear, handbags, and home.  **[RL_3372443_14]**  These categories are AUR accretive and will accelerate top-line growth and margins.  **[RL_3372443_14]**  Our handbag launches like the **RL888** and partnerships in China are showing positive momentum.  **[RL_3372443_14]** 

7. **Outlet Channel Performance**  
   **Q:** What is driving improvement in the outlet channel?  
   **A:** Our outlet channel saw healthy improvements driven by brand investments, targeted promotions, and increased store service.  **[RL_3372443_11]**  We experienced solid traffic growth across all three regions and increased AUR while effectively managing promotions during peak holiday periods.  **[RL_3372443_11]**  Investments in service are resulting in higher conversion rates.  **[RL_3372443_11]** 

8. **Digital Growth and Customer Acquisition**  
   **Q:** How is your digital business performing?  
   **A:** Our digital business is performing well, with North America comps up **4%**, driven by traffic, conversion, and basket size improvements.  **[RL_3372443_15]**  We acquired **1.7 million** new consumers last quarter, attracting higher-value, younger customers.  **[RL_3372443_15]**  In Europe, digital grew **12%**, and in Asia, it grew **25%**.  **[RL_3372443_15]**  Digital represents less than **30%** of the company, and we expect continued acceleration.  **[RL_3372443_15]** 

9. **Investment Priorities and Outperformance Flow-Through**  
   **Q:** How will you allocate investments amid outperformance?  
   **A:** We will balance flowing through outperformance with making strategic investments in our business.  **[RL_3372443_16]**  Areas receiving incremental spend include digital initiatives, store expansions, and brand investments.  **[RL_3372443_16]**  We are focused on enhancing productivity metrics and ensuring our investments in digital, stores, and brand continue to drive momentum.  **[RL_3372443_16]** 

7a71e88421573c49ae72a9989ee1f1a2860f92c1aa12f8a4628e4599bea16b13

- Ralph Lauren is experiencing strong international growth, particularly in key markets like China and Europe, driven by its **unique, timeless brand** and strategic marketing activations such as the **Olympics**, **Wimbledon**, and an incredible fashion show in the Hamptons. This has led to momentum across all regions, with **double-digit growth** in core products and a **6% comp increase in North America**.  **[RL_3406521_9]**
- The company demonstrates robust **pricing power** and **margin expansion**, supported by consumers gravitating towards higher-end assortments and strategic changes in geographic and channel mix. Ralph Lauren has increased its operating margin expansion guidance to **110 to 130 basis points**, is on track for a **15% operating margin** by fiscal '25, and believes **15% is not a ceiling**.  **[RL_3406521_10]** **[RL_3406521_9]**
- There is consistent, strong performance in both core products, which represent **over 70% of the business and were up low double digits**, and high-potential categories like women's apparel, outerwear, and handbags, which increased **mid-teens**, significantly outpacing total company growth, indicating broad-based momentum globally.  **[RL_3406521_12]** **[RL_3406521_9]**

4223c4d3bfaf7456c86c764a561148132ba512e2442b298741e46886003d5950

- Ralph Lauren expects **continued declines in North American wholesale revenue**, projecting a **low to mid-single-digit decrease** for fiscal 2025, indicating ongoing challenges in this segment.  **[RL_3390577_12]**
- **Macroeconomic headwinds**, such as **inflation**, **weak consumer sentiment**, and **geopolitical tensions** including "**the two wars that are going on**", could adversely affect performance in key regions like Europe and Asia.  **[RL_3390577_17]** ,  **[RL_3390577_11]**
- The company anticipates **rising costs** due to **higher labor expenses**, **inflation in non-cotton materials**, and **unfavorable foreign exchange rates** like the **weaker yen**, which may pressure margins despite planned gross margin improvements.  **[RL_3390577_16]**

5a48e5ace7e1b92f3e24ad85bc14ae9b904fca49760b706cc03172313964ef11

- Ralph Lauren **maintained its full-year guidance on both the top and bottom line**, demonstrating confidence in delivering on its plan even in a tougher consumer environment, supported by a **durable strategy**, a **strong timeless brand**, diversified growth drivers, and a **fortress balance sheet**.  **[RL_3396985_10]**
- The company expects **continued strong gross margin expansion**, driven by **durable factors** such as favorable product mix, expansion of direct-to-consumer channels, and **mid-single-digit AUR growth**, reinforcing the durability of their **brand elevation strategy**.  **[RL_3396985_12]**
- **Strong consumer engagement** is evident with **Net Promoter Scores up 400 basis points globally** and **online search growing 25% last quarter**, driven by impactful marketing activations, which are increasing brand desirability and supporting sustained growth.  **[RL_3396985_9]**

c6474a12931d29802540b2435792c5c651173bd7eab609063efd528ec027d28d

- **Ralph Lauren is on track to achieve its 3-year targets**, delivering at the high end of guidance and expecting continued top-line growth and operating margin expansion for fiscal '25, including reaching the **15% operating margin goal**, driven by brand elevation, DTC growth, and strong performance in Asia.  **[RL_3390577_11]**
- **Strong growth and momentum in China**, with RL's business in China now representing **7% of total company sales** (up from **3% pre-COVID**), driven by **double-digit sales growth**, strong brand connection with local consumers, and continued expansion in key cities, expected to **lead company growth** moving forward.  **[RL_3390577_18]**
- Despite challenges in North America wholesale, **Ralph Lauren expects operating margins to improve**, driven by **strong Direct-to-Consumer (DTC) growth in North America**, with **healthy comps in stores and digital** and benefits from **lower cotton costs** and less channel mix pressure expected to drive operating margins in fiscal '25.  **[RL_3390577_3]**

528a3b4ea63ef127d5c8da6d347a6bb19703f5effae4d7bdc939cb95cb41a372

1. **Margin Outlook**  
   **Q:** What are your multiyear margin drivers?  
   **A:** We raised our operating margin guidance to **110 to 130 basis points up** this year, firmly on track for our fiscal '25 target of **15%**, which is not a ceiling. We'll continue driving margin expansion through modest gross margin growth and expense leverage while strategically investing for long-term growth. We may reinvest upside into marketing and will focus on our brand elevation strategy beyond fiscal '25.  **[RL_3406521_9]** 

2. **International Growth Sustainability**  
   **Q:** What sustains your strong growth in Europe and China?  
   **A:** Our performance in key international markets is strong due to our unique, timeless brand, resonating products, and proven elevated go-to-market strategy. Our core products, which are **70%** of our business, were up double digits this quarter. We're investing in brand activations globally and are confident in maintaining our momentum across all key cities and regions.  **[RL_3406521_9]** 

3. **Pricing Power**  
   **Q:** Can you maintain pricing power ahead?  
   **A:** Our brand investments over the last **7+ years** have strengthened our pricing power. We planned mid-single-digit AUR growth this year and expect durable drivers like product elevation, strategic geo and channel mix, and high-value customer acquisition to support gross margin expansion, even in a potentially less favorable pricing environment.  **[RL_3406521_10]** 

4. **China Outlook**  
   **Q:** What's your outlook and expansion plans for China?  
   **A:** We feel very good about our momentum in China, achieving growth for **17 consecutive quarters**, including **13%** this past quarter. China represents about **8%** of our total company. We're opening about **70 stores in Asia** this year, including several in China, being highly selective to build the brand for the next **5 to 15 years** amid a volatile environment.  **[RL_3406521_17]** 

5. **Europe Store Expansion**  
   **Q:** How are you expanding stores in Europe?  
   **A:** With Europe comps up **15%**, we see significant opportunities for expansion. We've opened **44 new stores since fiscal '22**, planning about **20 stores** this fiscal year, and are on track to open **40 to 50 full-price stores** per our Investor Day targets. We're selective in locations, focusing on key cities and enhancing consumer engagement.  **[RL_3406521_18]** 

6. **U.S. Wholesale Outlook**  
   **Q:** Can U.S. wholesale turn positive this year?  
   **A:** We're encouraged as sell-out and sell-in aligned at down low single digits in Q2. We see positive signs with upper-tier distribution and digital channels outperforming. We expect stabilization at down low single digits in the back half and are cautiously optimistic about wholesale performance.  **[RL_3406521_11]** 

7. **SG&A Leverage Timing**  
   **Q:** When will SG&A start to leverage?  
   **A:** Our guidance implies SG&A leverage this fiscal year. Excluding marketing, SG&A was flat on **6%** revenue growth in Q2. We're strategically investing behind our brand but expect to deliver SG&A leverage for the full year by controlling expenses while reinvesting in growth opportunities.  **[RL_3406521_11]** 

8. **Promotional Strategy**  
   **Q:** What's your plan for pricing and promotions?  
   **A:** Globally, we've reduced promotional activity, contributing to a **10%** increase in AUR this quarter. In North America, we're pulling back on promotions, focusing on driving consumer engagement and demonstrating the value of our products. We'll remain nimble but plan to continue this elevation strategy.  **[RL_3406521_15]** 

9. **Tariffs and Sourcing**  
   **Q:** What's your exposure to China tariffs and sourcing?  
   **A:** China accounts for about high single-digit percentage of our globally sourced units, similar to our China sales penetration. Over the past **7+ years**, we've significantly diversified our sourcing footprint, developing alternative production and near-shoring capabilities to mitigate potential risks from tariffs.  **[RL_3406521_13]** 

10. **Comp Sales Performance**  
    **Q:** How did comps perform in North America and Europe?  
    **A:** In North America, brick-and-mortar comps were up high single digits, with full-price stores leading and outlets accelerating due to strong traffic. In Europe, we saw healthy growth across key markets, with DTC at the higher end and wholesale at the lower end of our guidance. We remain cautiously optimistic about continued strength despite a dynamic environment.  **[RL_3406521_14]** 

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- **Significant growth potential in the under-penetrated women's category**, which currently represents less than 25% of the business despite 56% of customers being women; expanding this segment is expected to drive future growth.  **[RL_3372443_14]**
- **Strong momentum in direct-to-consumer (DTC) channels**, now representing about two-thirds of the business, with healthy comp growth across regions and plans to open 250 new stores over three years, which is expected to enhance profitability and consumer engagement.  **[RL_3372443_8]** **[RL_3372443_16]**
- **Robust digital growth with significant runway**, as global digital sales are up high single digits, driven by new, younger, higher-value customers; digital currently represents less than 30% of the business, indicating opportunity for future expansion.  **[RL_3372443_15]**

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- **North America wholesale revenue decreased by 15% in Q3**, and the company remains cautious about recovery in this channel, indicating potential continued weakness in wholesale demand.  **[RL_3372443_9]**
- **Europe's outlook is cautious due to inflationary pressures and geopolitical uncertainties**, including impacts from the Middle East and Ukraine, which could lead to deceleration in growth in the region.  **[RL_3372443_9]**
- **Operating margin expansion may be limited by higher SG&A expenses and continued investments**, despite expected gross margin improvements, potentially constraining profitability growth.  **[RL_3372443_16]**

22e8b1d0b889230c8be860972ad0c747d1fe4b558b95a02dc32b48986668d65c

- **North America wholesale revenue declined by low single digits**, and this trend is expected to continue in the back half of the year. The company anticipates stabilization at this level, indicating potential ongoing weakness in this segment.  **[RL_3406521_11]**
- **Maintaining pricing power may become challenging** in a less favorable pricing environment. The company acknowledges relying less on like-for-like pricing increases in the near term and may need to adjust pricing strategies in a more competitive market.  **[RL_3406521_10]**
- The company's growth depends significantly on international markets, particularly **China**, where there are **geopolitical and macroeconomic uncertainties**. This reliance could pose risks to sustained growth.  **[RL_3406521_3]**

64fe4797457614c3bf947edacee040143aac999ddaf25441dba38bd485871bd2

Ralph Lauren Corp (RL)

Financials