Ralph Lauren Corporation (RL) Bundle
A Brief History of Ralph Lauren Corporation
Company Overview
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. The company operates in various segments, including North America, Europe, and Asia, and diversifies its business by geography and distribution channels.
Financial Performance as of September 28, 2024
During the three months ended September 28, 2024, RLC reported net revenues of $1.726 billion, a rise from $1.633 billion in the same period of the previous year. Net income for this period was $147.9 million, reflecting an increase from $146.9 million year-over-year. Net income per diluted share also increased to $2.31 from $2.19.
For the six months ended September 28, 2024, net revenues totaled $3.238 billion, up from $3.130 billion in the same period last year. Net income increased to $316.5 million from $279.0 million, with net income per diluted share rising to $4.93 from $4.15.
| Financial Metrics | Q3 2024 | Q3 2023 | 6 Months 2024 | 6 Months 2023 |
|---|---|---|---|---|
| Net Revenues | $1.726 billion | $1.633 billion | $3.238 billion | $3.130 billion |
| Net Income | $147.9 million | $146.9 million | $316.5 million | $279.0 million |
| Net Income per Diluted Share | $2.31 | $2.19 | $4.93 | $4.15 |
Operating Expenses and Profitability
Gross profit as a percentage of net revenues increased to 67.0% for the three months ended September 28, 2024, compared to 65.5% in the prior year. During the same period, selling, general, and administrative (SG&A) expenses rose to 55.5% of net revenues, up from 54.9%.
Cash Flow and Liquidity
As of September 28, 2024, RLC maintained a net cash and short-term investments position of $548.2 million, down from $642.7 million at the end of Fiscal 2024. This decrease was largely due to cash used for stock repurchases totaling $330.2 million and dividend payments of $98.9 million.
| Cash Flow Metrics | September 28, 2024 | March 30, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $1,355.0 million | $1,662.2 million |
| Short-term Investments | $334.7 million | $121.0 million |
| Total Debt | $1,141.5 million | $1,140.5 million |
| Equity | $2,442.3 million | $2,450.3 million |
Stock Repurchase Program
RLC has an ongoing stock repurchase program, with approximately $502 million remaining under the authorization as of September 28, 2024. The Company repurchased 2.0 million shares for $332.2 million during the six-month period ended September 28, 2024.
Dividends
On May 16, 2024, the Board of Directors increased the quarterly cash dividend from $0.75 to $0.825 per share, reflecting the Company's commitment to return value to shareholders.
| Dividends | Q2 2025 |
|---|---|
| Dividend Per Share | $0.825 |
Market Challenges and Strategic Initiatives
The Company continues to face challenges such as global supply chain disruptions and inflationary pressures. To address these, RLC is executing the Next Generation Transformation project, aimed at enhancing operational efficiency and pivoting towards a direct-to-consumer model.
A Who Owns Ralph Lauren Corporation (RL)
Major Shareholders
As of November 1, 2024, the ownership structure of Ralph Lauren Corporation includes the following significant shareholders:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Class A Common Stock | 40,217,068 | 65.0% |
| Class B Common Stock | 21,881,276 | 35.0% |
| Total Outstanding Shares | 62,098,344 | 100% |
Institutional Ownership
Institutional investors hold a significant portion of Ralph Lauren Corporation's shares. Key institutional shareholders include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 6,500,000 | 10.5% |
| BlackRock, Inc. | 6,000,000 | 9.7% |
| State Street Corporation | 4,500,000 | 7.2% |
| FMR LLC (Fidelity) | 3,800,000 | 6.1% |
Insider Ownership
Insider ownership is another important aspect of Ralph Lauren Corporation's ownership structure. The following data outlines key insider holdings:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Ralph Lauren | Executive Chairman | 12,000,000 | 19.3% |
| Patrice Louvet | President & CEO | 500,000 | 0.8% |
| Other Executives | - | 1,000,000 | 1.6% |
Recent Stock Performance
Ralph Lauren Corporation's stock performance has shown fluctuations in the market. Key statistics as of September 28, 2024, include:
| Metric | Value |
|---|---|
| Current Stock Price | $100.25 |
| Market Capitalization | $6.2 billion |
| 52-Week High | $110.00 |
| 52-Week Low | $85.00 |
| Dividend Yield | 3.3% |
Recent Developments
In recent quarters, Ralph Lauren Corporation has focused on strategic initiatives to enhance shareholder value, including stock repurchase programs and dividend increases. The latest quarterly dividend declared was $0.825 per share, an increase from the previous $0.75 per share.
As of September 28, 2024, the company has approximately $502 million remaining under its stock repurchase program initiated in February 2022.
Ralph Lauren Corporation (RL) Mission Statement
Mission Statement Overview
The mission statement of Ralph Lauren Corporation emphasizes a commitment to producing high-quality products while embodying a lifestyle of sophistication, elegance, and authenticity. The company aims to inspire and engage consumers through its unique brand heritage and a passion for design.
Financial Performance Indicators
As of September 28, 2024, Ralph Lauren Corporation has reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Revenues (Three Months) | $1.726 billion |
| Net Revenues (Six Months) | $3.238 billion |
| Net Income (Three Months) | $147.9 million |
| Net Income (Six Months) | $316.5 million |
| Net Income per Diluted Share (Three Months) | $2.31 |
| Net Income per Diluted Share (Six Months) | $4.93 |
| Gross Profit Margin (Three Months) | 67.0% |
| Gross Profit Margin (Six Months) | 68.6% |
Segment Performance
The company's net revenues by geographical segment for the six months ended September 28, 2024, are as follows:
| Segment | Net Revenues (in millions) |
|---|---|
| North America | $1,347.7 |
| Europe | $1,045.0 |
| Asia | $771.1 |
| Other Non-Reportable Segments | $74.4 |
| Total | $3,238.2 |
Market Position and Strategic Goals
Ralph Lauren Corporation continues to enhance its market position through a focus on direct-to-consumer channels and international expansion. The following data illustrates the company's strategic growth:
- Comparable Store Sales Growth (Total): 10% increase
- Digital Commerce Growth: 5%
- Brick and Mortar Growth: 11%
Shareholder Returns
The company has consistently provided returns to shareholders, highlighted by the following metrics:
| Metric | Value |
|---|---|
| Dividends Declared per Share (2024) | $0.825 |
| Total Dividends Declared (Six Months) | $102.7 million |
| Share Repurchases (Six Months) | $330.2 million |
Conclusion on Financial Health
Ralph Lauren Corporation's financial health remains robust, with significant revenues and a focus on maintaining quality and luxury in its offerings. The fiscal performance reflects a strong brand presence and strategic initiatives aimed at long-term growth.
How Ralph Lauren Corporation (RL) Works
Business Overview
Ralph Lauren Corporation (RL) operates in the premium lifestyle apparel sector, offering a variety of products across different categories, including clothing, accessories, and home goods. The company has a strong global presence and utilizes both wholesale and direct-to-consumer channels to reach its customers.
Financial Performance
As of September 28, 2024, Ralph Lauren reported net revenues of $1.726 billion for the three months ended, representing a 5.7% increase from $1.633 billion during the same period in the prior year. For the six months ended, net revenues totaled $3.238 billion, up from $3.129 billion, marking a 3.5% increase.
| Period | Net Revenues (millions) | Net Income (millions) | Net Income per Diluted Share |
|---|---|---|---|
| Three Months Ended September 28, 2024 | $1,726.0 | $147.9 | $2.31 |
| Three Months Ended September 30, 2023 | $1,633.0 | $146.9 | $2.19 |
| Six Months Ended September 28, 2024 | $3,238.2 | $316.5 | $4.93 |
| Six Months Ended September 30, 2023 | $3,129.5 | $279.0 | $4.15 |
Segment Performance
Ralph Lauren's revenues are categorized into geographic segments: North America, Europe, Asia, and Other non-reportable segments. The following summarizes the net revenues by segment for the three months ended September 28, 2024:
| Segment | Net Revenues (millions) | Comparison to Previous Year (millions) |
|---|---|---|
| North America | $739.5 | +$21.7 |
| Europe | $565.9 | +$39.1 |
| Asia | $380.2 | +$31.8 |
| Other Non-Reportable Segments | $40.4 | +$0.4 |
Cost Structure
For the three months ended September 28, 2024, Ralph Lauren's cost of goods sold was $570.3 million, resulting in a gross profit of $1,155.7 million. The gross profit margin increased by 150 basis points to 67.0%.
Operating Expenses
Selling, general, and administrative (SG&A) expenses were $958.4 million, representing 55.5% of net revenues for the three months ended September 28, 2024. This is an increase of 60 basis points compared to the previous year.
Net Income and Earnings Per Share
Net income for the three months ended September 28, 2024 was $147.9 million, with earnings per diluted share of $2.31. This reflects a modest increase from $146.9 million and $2.19 per share in the previous year.
Cash Flow and Liquidity
As of September 28, 2024, Ralph Lauren reported cash and cash equivalents of $1.355 billion. The company generated net cash provided by operating activities of $374.5 million for the six months ended September 28, 2024.
Balance Sheet Overview
The total liabilities for Ralph Lauren Corporation as of September 28, 2024, were $4.357 billion, while total equity stood at $2.442 billion.
| Balance Sheet Item | Amount (millions) |
|---|---|
| Total Assets | $6,800.0 |
| Total Liabilities | $4,357.7 |
| Total Equity | $2,442.3 |
Dividends and Stock Repurchases
For the three months ended September 28, 2024, Ralph Lauren declared dividends of $51.2 million and repurchased $129.5 million of its common stock.
Strategic Direction
The company continues to focus on enhancing its direct-to-consumer channels while navigating global economic challenges and supply chain disruptions. Ralph Lauren aims to maintain its premium brand positioning through continued investments in marketing and product innovation.
How Ralph Lauren Corporation (RL) Makes Money
Revenue Streams
Ralph Lauren Corporation generates revenue through three primary channels: retail, wholesale, and licensing. As of September 28, 2024, the company's net revenues by segment are detailed below:
| Segment | Three Months Ended September 28, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Six Months Ended September 28, 2024 (in millions) | Six Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| North America | $739.5 | $717.8 | $1,347.7 | $1,349.5 |
| Europe | $565.9 | $526.8 | $1,045.0 | $977.3 |
| Asia | $380.2 | $348.4 | $771.1 | $725.9 |
| Other non-reportable segments | $40.4 | $40.0 | $74.4 | $76.8 |
| Total Net Revenues | $1,726.0 | $1,633.0 | $3,238.2 | $3,129.5 |
Direct-to-Consumer Channels
Ralph Lauren continues to focus on expanding its direct-to-consumer (DTC) business, which has shown significant growth. The DTC channels include retail stores and e-commerce platforms. The company reported a 5.6% increase in DTC revenues on a constant currency basis during the six months ended September 28, 2024, primarily due to strong online sales growth.
Gross Profit Margins
For the three months ended September 28, 2024, Ralph Lauren's gross profit margin improved to 67.0%, up from 65.5% in the prior year. This increase is attributed to favorable product mix, lower cotton costs, and growth in average unit retail (AUR) prices.
Operating Income
The operating income for Ralph Lauren Corporation stood at $178.9 million for the three months ended September 28, 2024, compared to $164.5 million in the same period last year. This reflects a year-over-year increase of 8.8%.
Net Income
Net income for the three months ended September 28, 2024, was reported at $147.9 million, a slight increase from $146.9 million in the previous year. The net income per diluted share increased to $2.31 from $2.19 during the same timeframe.
Costs and Expenses
For the six months ended September 28, 2024, selling, general, and administrative (SG&A) expenses rose to $1,808.3 million, accounting for 55.8% of net revenues, up from 55.2% in the prior year. This increase is primarily due to higher marketing investments and the growth of international and retail operations, which typically have higher operating expense margins.
Licensing Revenue
Licensing revenue is recognized over time as products are sold by licensees. For the six months ended September 28, 2024, licensing revenue amounted to $74.4 million, down from $76.8 million in the prior year.
Cash Flow and Investments
Net cash provided by operating activities for the six months ended September 28, 2024, was $374.5 million, compared to $343.6 million in the prior year. The company reported capital expenditures of $75.1 million during the same period.
Store Count and Digital Presence
As of September 28, 2024, Ralph Lauren operated a total of 1,252 stores globally, a decrease from 1,274 stores in the previous year. The company has also focused on enhancing its digital presence, with a 5% increase in digital commerce sales during the last quarter.
Future Projections
Contractually guaranteed minimum royalties expected to be recognized as revenue during future periods total $320.4 million, with significant amounts projected for fiscal years 2025 through 2029. The breakdown is as follows:
| Fiscal Year | Minimum Royalties (in millions) |
|---|---|
| Remainder of Fiscal 2025 | $46.4 |
| Fiscal 2026 | $85.4 |
| Fiscal 2027 | $84.2 |
| Fiscal 2028 | $49.7 |
| Fiscal 2029 and thereafter | $54.7 |
| Total | $320.4 |
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Resources:
- Ralph Lauren Corporation (RL) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Ralph Lauren Corporation (RL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ralph Lauren Corporation (RL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.