Ralph Lauren Corporation (NYSE: NYSE: RL ) has reported a strong finish to fiscal year 2024, surpassing expectations with robust fourth-quarter earnings. The iconic fashion brand attributes its success to strategic brand elevation, a shift towards direct-to-consumer (DTC) sales, and solid growth in Asia, particularly China. The company's new CFO, Justin Picicci, is set to uphold the fiscal momentum as Ralph Lauren continues to focus on digital expansion and sustainability.
Key Takeaways Ralph Lauren's fourth-quarter and full-year earnings for fiscal 2024 exceeded expectations. The company is shifting focus to direct-to-consumer channels and brand desirability. Strong growth in Asia, with China sales increasing by low-double digits for the quarter and 30% for the year.
Ralph Lauren named Justin Picicci as the new Chief Financial Officer. Low-single-digit revenue growth expected for fiscal 2025, with an emphasis on DTC over wholesale channels. The company is on track to achieve a 15% operating margin target for the year.
Company Outlook Ralph Lauren expects low-single-digit revenue growth for fiscal 2025. The company anticipates Asia to lead growth, followed by Europe and North America. Operating margin expansion is expected, with a full-year target of 15%.
Gross margin is projected to improve, with favorable cotton costs and increased average unit retail (AUR). Capital expenditures are forecasted to be between $300 million and $325 million. Bearish Highlights The wholesale cha.
