Ralph Lauren Corporation reported its financial results for the three and six months ended September 28, 2024, showing notable growth in revenues and profitability compared to the same periods in the previous fiscal year.

For the three months ended September 28, 2024, net revenues reached $1,726.0 million, a 5.7% increase from $1,633.0 million in the prior year. The six-month period also saw a revenue increase to $3,238.2 million, up 3.5% from $3,129.5 million. This growth was primarily driven by the retail segment, which reported a significant rise in comparable store sales, particularly in North America and Europe.

Gross profit for the three months increased to $1,155.7 million, reflecting an 8.0% rise from $1,070.1 million, with gross profit margins improving to 67.0% from 65.5%. For the six months, gross profit was $2,221.5 million, up 5.7% from $2,102.1 million. The increase in gross margins was attributed to favorable product and geographic mix shifts, lower cotton costs, and growth in average unit retail prices.

Operating income for the three months ended September 28, 2024, was $178.9 million, an increase of 8.8% from $164.5 million. For the six-month period, operating income rose to $387.4 million, up 17.1% from $330.9 million. The operating margin for the three months improved to 10.4%, while the six-month margin was 12.0%, reflecting enhanced operational efficiency despite rising selling, general, and administrative (SG&A) expenses.

Net income for the three months was $147.9 million, a slight increase from $146.9 million, while for the six months, net income rose to $316.5 million from $279.0 million. The diluted net income per share for the three months was $2.31, up from $2.19, and for the six months, it was $4.93, compared to $4.15 in the prior year.

The company also reported cash and cash equivalents of $1,355.0 million as of September 28, 2024, down from $1,662.2 million at the end of the previous fiscal year. Short-term investments increased significantly to $334.7 million from $121.0 million. Long-term debt decreased to $742.2 million from $1,140.5 million, indicating improved financial leverage.

Ralph Lauren's strategic initiatives included ongoing restructuring efforts, with cash-related restructuring charges of $7.4 million for the three months and $10.7 million for the six months. The company is also advancing its Next Generation Transformation project, incurring additional charges of $5.7 million and $8.0 million for the respective periods.

Overall, Ralph Lauren Corporation's performance reflects a solid recovery trajectory, supported by strategic growth in retail and effective cost management, despite challenges posed by global economic conditions.