Q4 2024 Ralph Lauren Corp Earnings Call Transcript
Key Points
- Ralph Lauren Corp (RL) delivered 3% top line growth and 40 basis points of operating margin expansion for the full year, driving more than 20% adjusted EPS growth.
- The company added over 5 million new consumers to its direct-to-consumer (DTC) businesses, with significant growth in brand consideration, purchase intent, and Net Promoter Scores.
- Ralph Lauren Corp (RL) saw strong performance in its core products, which now represent more than 70% of its business, growing high single digits for the full year.
- The company achieved significant social media engagement, growing its followers by low double digits to over 58 million, led by platforms like Instagram, LINE, Douyin, and TikTok.
- Ralph Lauren Corp (RL) reported strong DTC comp growth, with mid-single digits increases in both brick-and-mortar stores and digital channels, and opened 78 new stores and concessions globally.
- The global environment remains challenging, with competitors calling out difficulties in Europe and China, which could impact Ralph Lauren Corp (RL)'s future performance.
- North America wholesale revenues declined 2%, and the company expects continued declines in this channel, albeit at a more moderate pace.
- The company faces potential headwinds from inflationary pressures, consumer spending-related challenges, supply chain disruptions, and foreign currency volatility.
- Ralph Lauren Corp (RL) anticipates a modest headwind from the Red Sea disruption on top of an otherwise neutral freight environment, which could impact gross margins.
- The company expects higher operating expenses in the first quarter due to the timing of marketing activations, which may lead to some SG&A deleverage.
Ladies and gentlemen, thank you for standing by. Welcome to the Ralph Lauren Fourth Quarter and Full Year Fiscal 2024 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I'd now like to turn over the conference to our host, Ms. Corinna Van der Ghinst. Please go ahead.
Good morning, and thank you for joining Ralph Lauren's Fourth Quarter and Full Year Fiscal 2024 Conference Call. With me today are Patrice Louvet, the company's President and Chief Executive Officer; and Jane Nielsen, Chief Operating Officer and Chief Financial Officer. After prepared remarks, we will open up the call for your questions, which we ask that you limit to one per caller.
During today's call, our financial performance will be discussed on a constant currency adjusted basis. Our reported results, including foreign currency can be found in this morning's press release. We will also be making some forward-looking statements within the meaning of the federal securities laws, including
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