Ralph Lauren (NYSE: RL) reported Q4 EPS of $1.71, $0.04 better than the analyst estimate of $1.67. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.56 billion.

Full Year Fiscal 2025 and First Quarter Outlook:

The Company's outlook is based on its best assessment of the current geopolitical and macroeconomic environment, including inflationary pressures, other consumer spending-related headwinds and foreign currency volatility, among others. The full year Fiscal 2025 and first quarter guidance excludes any potential restructuring-related and other net charges that may be incurred in future periods, as described in the "Non-U.S. GAAP Financial Measures" section of this press release.

For Fiscal 2025, the Company expects revenues to increase low-single digits to last year on a constant currency basis, centering on about 2% to 3%. Based on current exchange rates, foreign currency is expected to negatively impact revenue growth by approximately 90 basis points in Fiscal 2025.

The Company expects operating margin for Fiscal 2025 to expand approximately 100 to 120 basis points in constant currency, driven by gross margin expansion and operating expense leverage. Gross margin is expected to increase about 50 to 100 basis points in constant currency, with AUR growth, reduced cotton costs and favorable geographic and channel mix shift more than offsetting incremental product costs from materials and labor and freight costs related to Red Sea disruptions. Foreign currency is expected to negatively impact gross and operating margins by approximately 30 basis points in Fiscal 2025.

For the first quarter, the Company expects revenues to be up slightly to last year on a constant currency basis. On a reported basis, including approximately 160 basis points of negative foreign currency impact, revenues are expected to be down slightly to prior year. The revenue outlook includes approximately 50 basis points of negative impact from the earlier timing of Easter, which benefited our fourth quarter of Fiscal 2024.

Operating margin for the first quarter is expected to expand approximately 60 to 80 basis points in constant currency, driven by stronger gross margins. Gross margin expansion of approximately 140 to 180 basis points is expected to be driven by lower cotton costs and continued AUR growth partially offset by an increase in other product costs. Foreign currency is expected to have roughly 40 basis points of negative impact on both gross and operating margins in the first quarter.

The full year Fiscal 2025 tax rate is expected to be in the range of 23% to 24%, assuming a continuation of current tax laws. First quarter of Fiscal 2025 tax rate is expected to be about 24% to 25%.

The Company is planning capital expenditures for Fiscal 2025 of approximately $300 million to $325 million.

For earnings history and earnings-related data on Ralph Lauren (RL) click here.