Q1 2025 Ralph Lauren Corp Earnings Call Transcript
Key Points
- First quarter results exceeded expectations, driven by strong international performance and positive retail comps across all regions.
- Ralph Lauren Corp (RL) added 1.3 million new consumers to its direct-to-consumer (DTC) businesses, with higher value and younger cohorts leading the growth.
- The company saw significant growth in its social media following, surpassing 60 million followers, led by platforms like Instagram, Threads, and TikTok.
- High-potential categories such as women's apparel, outerwear, and handbags showed strong growth, outpacing the company's overall growth rate.
- Ralph Lauren Corp (RL) maintained a strong balance sheet with $1.8 billion in cash and short-term investments, and generated $245 million in free cash flow in the first quarter.
- North America wholesale revenues declined by 13%, reflecting reduced sales of excess product into the off-price channel.
- The company is cautious about the macroeconomic environment, including inflationary pressures, supply chain disruptions, and foreign currency volatility.
- North America digital comps declined by 4%, indicating challenges in the digital business within the region.
- The company plans to close approximately 45 department store doors this fiscal year, which may impact overall revenue.
- Foreign currency is expected to negatively impact revenue growth by about 150 basis points, driven primarily by Asian FX.
Welcome to the Ralph Lauren first quarter and full year fiscal year 2025 earnings call. At this time, all participants are in a listen only mode. Later we will conduct an approach and will be given at that time. If you should require assistance during the call, please press star then zero. As a reminder, this conference is being recorded. I'd now like to turn over the conference to our host, Mr. Ryan of. And again, please go ahead.
Good morning, and thank you for joining Ralph Lauren's First Quarter Fiscal 2025 conference call. With me today are Patrice, we weigh the Company's President and Chief Executive Officer, and just in the GG. Chief Financial Officer. After prepared remarks, we'll 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
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