Ralph Lauren Reports 6.8% Revenue Growth and $742.9 Million Net Income for Fiscal Year 2025

**Ralph Lauren Corp Reports Fiscal Year Results**

Ralph Lauren Corporation (NYSE: RL) has released its financial results for the fiscal year ended March 29, 2025. The company reported net revenues of $7.079 billion, an increase of 6.8% compared to the $6.631 billion reported in the previous fiscal year. On a constant currency basis, revenue increased by 7.7%. Net income for the year was $742.9 million, or $11.61 per diluted share, compared to $646.3 million, or $9.71 per diluted share, in the prior year. The company's performance was driven by growth across all reportable segments, including North America, Europe, and Asia.

The company's gross profit margin increased by 180 basis points to 68.6%, driven by favorable geographic, channel, and product mix, average unit retail (AUR) growth, and lower cotton costs. Selling, general, and administrative (SG&A) expenses as a percentage of net revenues increased by 30 basis points to 54.6%, primarily due to geographic and channel mix, as well as increases in compensation-related expenses and marketing investments. The company's effective tax rate was 21.9%, compared to 16.9% in the prior year, due to the absence of prior year favorable adjustments related to the accrual of deferred tax assets in connection with a transaction entered into as part of a reorganization of its corporate entity structure, and revaluation of deferred tax assets as a result of tax rate changes enacted in the prior year period, partially offset by a current year favorable adjustment related to the revaluation of a deferred tax liability on foreign earnings.

Operationally, Ralph Lauren continued to expand its digital ecosystem and connected retail capabilities, including online appointment bookings, digital clienteling, and buy online-ship from store options. The company's retail business included 564 retail stores and 671 concession-based shop-within-shops, totaling approximately 4.1 million and 0.7 million square feet, respectively. During the fiscal year, the company opened 36 new retail stores and closed 36 stores. The company's wholesale products were sold through over 9,400 doors worldwide, with the majority in specialty stores. The company also served approximately 120 third-party digital partners, primarily in Europe.

Looking ahead, Ralph Lauren is in the early stages of executing a multi-year global project, the "Next Generation Transformation project," which aims to transform the way the company operates and further enable its strategic pivot towards a global direct-to-consumer-oriented model. The project involves redesigning end-to-end processes and implementing a suite of technology systems on a global scale. The company expects to incur capital expenditures of approximately 4% to 5% of net revenues in Fiscal 2026, primarily related to store openings and renovations, enhancements to information technology systems, and corporate office renovations. On May 15, 2025, the Board of Directors approved an expansion of the common stock repurchase program that allows the company to repurchase up to an additional $1.500 billion of Class A common stock. The Board of Directors also approved an increase to the quarterly cash dividend on the company's common stock from $0.825 to $0.9125 per share.