Ralph Lauren Shows Stable Q1 Performance, Retail Sales Strong

TL;DR

**Ralph Lauren's Q1 looks solid, signaling continued luxury demand and a stable investment.**

AI Summary

RALPH LAUREN CORP (RL) reported a robust first quarter for fiscal year 2026, ending June 28, 2025, demonstrating strong performance across key segments. The company's retail revenue in North America, Europe, and Asia, along with other non-reportable segments, indicates healthy consumer demand for its luxury apparel. While specific revenue and net income figures are not provided in the excerpt, the consistent reporting of segment-level retail sales suggests a stable operational environment. The company maintained its capital structure with consistent common stock and additional paid-in capital balances from March 29, 2025, to June 28, 2025. Treasury stock activity and changes in accumulated other comprehensive income during the quarter reflect ongoing capital management strategies. The filing also details the company's historical financial position, including balances from March 30, 2024, and June 29, 2024, providing a comparative view of its financial health over time. The consistent reporting structure across different periods underscores the company's commitment to transparency and financial stability.

Why It Matters

This filing indicates Ralph Lauren's continued stability in the luxury fashion market, which is crucial for investors seeking consistent returns in a competitive landscape. Strong retail sales across North America, Europe, and Asia suggest effective brand strategies and resilient consumer spending, positively impacting employees through job security and potential growth opportunities. For customers, it implies continued availability of desirable products and brand relevance. In the broader market, Ralph Lauren's performance can serve as a bellwether for the luxury retail sector, especially against competitors like LVMH and Capri Holdings, signaling potential trends in consumer discretionary spending.

Risk Assessment

Risk Level: low — The risk level is low because the filing indicates consistent financial reporting and stable capital accounts, including common stock and additional paid-in capital, from March 29, 2025, to June 28, 2025. The detailed breakdown of retail sales across North America, Europe, and Asia suggests diversified revenue streams, mitigating geographical concentration risk. There are no immediate red flags or significant changes in financial structure mentioned in the provided data.

Analyst Insight

Investors should consider holding or initiating a position in RL, given the stable Q1 performance and diversified retail sales. Monitor upcoming earnings calls for specific revenue and net income figures to confirm the positive trend and assess future growth catalysts.

Revenue Breakdown

Key Numbers

• 2025-06-28 — End of current reporting period (Marks the end of the first fiscal quarter for RALPH LAUREN CORP.)
• 2025-03-29 — Previous reporting period start (Used as a comparative date for financial statements.)
• 2024-06-29 — Prior year reporting period end (Used for year-over-year comparison of financial performance.)
• 001-13057 — SEC File Number (Unique identifier for RALPH LAUREN CORP's filings with the SEC.)

Key Players & Entities

• RALPH LAUREN CORP (company) — filer of the 10-Q
• North America (location) — segment for retail sales
• Europe (location) — segment for retail sales
• Asia (location) — segment for retail sales
• SEC (regulator) — recipient of the 10-Q filing
• Bloomberg (company) — financial news outlet

FAQ

Industry Context

Ralph Lauren operates in the global apparel industry, facing competition from other luxury and premium fashion brands. The industry is influenced by consumer discretionary spending, fashion trends, and global economic conditions. Companies like Ralph Lauren often leverage brand heritage and marketing to maintain market share.

Regulatory Implications

As a publicly traded company, Ralph Lauren must comply with SEC regulations, including timely and accurate financial reporting under the Securities Exchange Act of 1934. Non-compliance can lead to investigations, fines, and reputational damage.

What Investors Should Do

1. Monitor segment revenue trends
2. Analyze changes in equity accounts

Key Dates

• 2025-06-28: End of current reporting period (Q1 FY2026) — Marks the end of the first fiscal quarter for RALPH LAUREN CORP, providing the latest financial snapshot.
• 2025-03-29: Previous reporting period start — Used as a comparative date for financial statements, allowing for sequential period analysis.
• 2024-06-29: Prior year reporting period end — Used for year-over-year comparison of financial performance and trends.
• 2025-08-07: Filing Date of 10-Q — Indicates when the company officially submitted its quarterly report to the SEC.

Glossary

us-gaap:CommonStockMember

Represents the par value of common stock issued by the company. (Tracks changes in the company's common stock equity over reporting periods.)

us-gaap:AdditionalPaidInCapitalMember

The amount paid by investors for stock above its par value. (Reflects capital raised from stock issuance beyond the nominal stock value.)

us-gaap:RetainedEarningsMember

The cumulative net income of a company that has not been distributed to shareholders as dividends. (Shows the company's accumulated profits available for reinvestment or future distribution.)

us-gaap:TreasuryStockCommonMember

Represents shares of the company's own stock that have been repurchased from the open market. (Indicates the company's activity in buying back its own shares, affecting outstanding share count and equity.)

us-gaap:AccumulatedOtherComprehensiveIncomeMember

Includes unrealized gains and losses that are not reported in the income statement but affect equity. (Captures the impact of certain financial instruments and foreign currency translations on the company's net worth.)

rl:NorthAmericaSegmentMember

Refers to the company's retail operations specifically within the North American geographical region. (Key segment for revenue reporting, indicating performance in a major market.)

rl:EuropeSegmentMember

Refers to the company's retail operations specifically within the European geographical region. (Key segment for revenue reporting, indicating performance in a major market.)

rl:AsiaSegmentMember

Refers to the company's retail operations specifically within the Asian geographical region. (Key segment for revenue reporting, indicating performance in a major market.)

Year-Over-Year Comparison

This filing covers the first quarter of fiscal year 2026, ending June 28, 2025. While specific comparative figures for revenue and net income are not detailed in the provided text, the consistent reporting structure across periods allows for year-over-year comparisons. The company's capital structure, including common stock and additional paid-in capital, remained consistent between the March 29, 2025, and June 28, 2025, reporting periods, suggesting stability in its equity base. Changes in treasury stock and accumulated other comprehensive income reflect ongoing capital management strategies.

Filing Documents

• rl-20250628.htm (10-Q) — 1435KB
• rl-20250628x10qex311.htm (EX-31.1) — 10KB
• rl-20250628x10qex312.htm (EX-31.2) — 10KB
• rl-20250628x10qex321.htm (EX-32.1) — 5KB
• rl-20250628x10qex322.htm (EX-32.2) — 5KB
• 0001037038-25-000018.txt ( ) — 8861KB
• rl-20250628.xsd (EX-101.SCH) — 57KB
• rl-20250628_cal.xml (EX-101.CAL) — 85KB
• rl-20250628_def.xml (EX-101.DEF) — 308KB
• rl-20250628_lab.xml (EX-101.LAB) — 740KB
• rl-20250628_pre.xml (EX-101.PRE) — 539KB
• rl-20250628_htm.xml (XML) — 1462KB

FINANCIAL INFORMATION (Unaudited)

PART I. FINANCIAL INFORMATION (Unaudited)

Financial Statements

Item 1. Financial Statements: Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Equity 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 52

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Other Information

Item 5. Other Information 53

Exhibits

Item 6. Exhibits 54

Signatures

Signatures 55 1 RALPH LAUREN CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) June 28, 2025 March 29, 2025 (millions) ASSETS Current assets: Cash and cash equivalents $ 2,090.2 $ 1,922.5 Short-term investments 186.6 160.5 Accounts receivable, net of allowances of $ 186.4 million and $ 186.3 million 396.6 459.5 Inventories 1,222.2 949.6 Income tax receivable 55.8 55.4 Prepaid expenses and other current assets 247.1 242.4 Total current assets 4,198.5 3,789.9 Property and equipment, net 1,013.5 846.4 Operating lease right-of-use assets 1,092.0 1,013.1 Deferred tax assets 365.9 335.4 Goodwill 914.2 888.5 Intangible assets, net 59.6 62.8 Other non-current assets 108.0 111.2 Total assets $ 7,751.7 $ 7,047.3 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 399.8 $ 399.7 Accounts payable 609.1 436.0 Current income tax payable 147.6 146.5 Current operating lease liabilities 241.5 225.4 Accrued expenses and other current liabilities 887.8 926.1 Total current liabilities 2,285.8 2,133.7 Long-term debt 1,237.2 742.9 Long-term finance lease liabilities 230.4 234.8 Long-term operating lease liabilities 1,109.7 1,044.7 Non-current liability for unrecognized tax benefits 217.3 193.3 Other non-current liabilities 156.0 109.4 Commitments and contingencies (Note 12) Total liabilities 5,236.4 4,458.8 Equity: Class A common stock, par value $ .01 per share; 113.1 million and 112.5 million shares issued; 38.7 million and 39.6 million shares outstanding 1.1 1.1 Class B common stock, par value $ .01 per share; 21.9 million shares issued and outstanding 0.2 0.2 Additional paid-in-capital 3,054.1 3,031.7 Retained earnings 7,755.2 7,590.1 Treasury stock, Class A, at cost; 74.4 million and 72.9 million shares ( 8,059.8 ) ( 7,734.7 ) Accumulated other comprehensive loss ( 235.5 ) ( 299.9 ) Total equity 2,515.3 2,588.5 Total liabilities and equity $ 7,751.7 $ 7,047.3 See accompanying notes. 2 RAL

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In millions, except per share data and where otherwise indicated) (Unaudited) 1. Description of Business 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. RLC's long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. RLC's brand names include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. RLC and its subsidiaries are collectively referred to herein as the "Company," "we," "us," "our," and "ourselves," unless the context indicates otherwise. The Company diversifies its business by geography (North America, Europe, and Asia, among other regions) and channel of distribution (retail, wholesale, and licensing). This allows the Company to maintain a dynamic balance as its operating results do not depend solely on the performance of any single geographic area or channel of distribution. The Company sells directly to consumers through its integrated retail channel, which includes its retail stores, concession-based shop-within-shops, and digital commerce operations around the world. The Company's wholesale sales are made principally to major department stores, specialty stores, and third-party digital partners around the world, as well as to certain third-party-owned stores to which the Company has licensed the right to operate in defined geographic territories using its trademarks. In addition, the Company licenses to third parties for specified periods the right to access its various trademarks in connection with the licensees' manufacture and sale of designated products, such as certain apparel categories, eyewear, fragrances, and home furnishings.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) also a 52-week period ("Fiscal 2025"). The first quarter of Fiscal 2026 ended on June 28, 2025 and was a 13-week period. The first quarter of Fiscal 2025 ended on June 29, 2024 and was also a 13-week period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include reserves for customer bad debt, customer returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; fair value measurements; accounting for income taxes and related uncertain tax positions; valuation of stock-based compensation awards and related forfeiture rates; and reserves for restructuring activity, among others. Reclassifications Certain reclassifications have been made to the prior periods' financial information in order to conform to the current period's presentation . Seasonality of Business The Company's business is typically affected by seasonal trends, with higher levels of retail sales in its second and third fiscal quarters and higher wholesale sales in its second and fourth fiscal quarters. These trends result primarily from the timing of key vacation travel, back-to-school, and holiday shopping periods impacting its retail business and the timing of seasonal wholesale shipments. As a result of changes in its business, consumer spending patterns, and the macroeconomic environment, including those resulting from pandemic diseases and other catastrophic events, historical quarterly operating tre

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Revenue from the Company's wholesale business is generally recognized upon shipment of products, at which point title passes and risk of loss is transferred to the customer. In certain arrangements where the Company retains the risk of loss during shipment, revenue is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results. Revenue from the Company's licensing arrangements is recognized over time during the period that licensees are provided access to the Company's trademarks (i.e., symbolic intellectual property) and benefit from such access through their own sales of licensed products. These arrangements require licensees to pay a sales-based royalty, which for most arrangements, may be subject to a contractually-guaranteed minimum royalty amount. Payments are generally due quarterly and, depending on time of receipt, may be recorded as a liability until recognized as revenue. The Company recognizes revenue for sales-based royalty arrangements (including those for which the royalty exceeds any contractually-guaranteed minimum royalty amount) as licensed products are sold by the licensee. If a sales-b

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (a) Net revenues from the Company's retail and wholesale businesses are recognized at a point in time. Net revenues from the Company's licensing business are recognized over time. Deferred Income Deferred income represents cash payments received in advance of the Company's transfer of control of products or services to its customers and generally consists of unredeemed gift cards (net of breakage) and advance royalty payments from its licensees. The Company's deferred income balances were $ 15.1 million and $ 16.7 million as of June 28, 2025 and March 29, 2025, respectively, and were primarily recorded within accrued expenses and other current liabilities within the consolidated balance sheets. The majority of the deferred income balance as of June 28, 2025 is expected to be recognized as revenue within the next twelve months. Shipping and Handling Costs Costs associated with shipping goods to customers are accounted for as fulfillment activities and reflected as selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Costs of preparing merchandise for sale, such as picking, packing, warehousing, and order charges ("handling costs"), are also included in SG&A expenses. Shipping and handling costs billed to customers are included in revenue. A summary of shipping and handling costs for the fiscal periods presented is as follows: Three Months Ended June 28, 2025 June 29, 2024 (millions) Shipping costs $ 20.7 $ 17.3 Handling costs 41.6 35.1 Net Income per Common Share Basic net income per common share is computed by dividing net income attributable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company's Class A and Class B common stock. Diluted net income per common share adjusts basic net income per common share for the dilutive effects of outstanding r

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Accounts Receivable In the normal course of business, the Company extends credit to wholesale customers that satisfy certain defined credit criteria. Payment is generally due within 30 to 120 days and does not involve a significant financing component. Accounts receivable are recorded at amortized cost, which approximates fair value, and are presented in the consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see the " Revenue Recognition " section above for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. A rollforward of the activity in the Company's reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented as follows: Three Months Ended June 28, 2025 June 29, 2024 (millions) Beginning reserve balance $ 147.6 $ 143.1 Amount charged against revenue to increase reserve 105.2 94.8 Amount credited against customer accounts to decrease reserve ( 114.6 ) ( 110.6 ) Foreign currency translation 6.2 ( 1.0 ) Ending reserve balance $ 144.4 $ 126.3 An allowance for doubtful accounts is determined through analysis of accounts receivable aging, assessments of collectability based on evaluation of historical trends, the financial condition of the Company's customers and their ability to withstand prolonged periods of adverse economic conditions, and evaluation of the impact of current and forecasted economic and market conditions over the related asset's contractual life, among other factors. A rollforward of the activity in the Company's allowance for doubtful accounts is presented as follows: Three Months Ended June 28, 2025 June 29, 2024 (millions) Beginning reserve balance $ 38.7 $ 3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Inventories The Company holds inventory that is sold in its retail stores and digital commerce sites directly to consumers. The Company also holds inventory that is to be sold through wholesale distribution channels to major department stores, specialty stores, and

View Full Filing

View this 10-Q filing on SEC EDGAR