Ralph Lauren Corporation (NYSE:RL) has reported fourth quarter and full year fiscal 2024 results that exceeded expectations. The company's fourth quarter revenue was up 2% on a reported basis and 3% in constant currency, with full year fiscal 2024 revenue up 3% in both reported and constant dollars. The global direct-to-consumer comparable store sales increased 6% in both the fourth quarter and full year. The company also delivered fourth quarter gross and operating margin expansion above their outlook.
For fiscal 2025, Ralph Lauren Corporation has provided an outlook for net revenue growth of low-single digits on both a reported and constant currency basis, with gross and operating margin expansion on track with long-term targets. The company returned a total of approximately $600 million to shareholders through dividend and repurchase of class A common stock in fiscal 2024, and the board of directors has approved a 10% dividend increase.
The company reported earnings per diluted share of $1.38 on a reported basis and $1.71 on an adjusted basis for the fourth quarter of fiscal 2024, compared to earnings per diluted share of $0.48 on a reported basis and $0.90 on an adjusted basis for the fourth quarter of fiscal 2023.
Ralph Lauren Corporation has named Justin Picicci as chief financial officer, effective May 23, 2024, following a multi-year succession plan; Jane Nielsen will remain in the chief operating officer role through fiscal 2025.
In the fourth quarter of fiscal 2024, the company's revenue increased 2% to $1.6 billion on a reported basis and was up 3% in constant currency. The gross profit for the fourth quarter of fiscal 2024 was $1.0 billion and gross margin was 66.6%, while the operating income was $108 million and operating margin was 6.9% on a reported basis. For the full year fiscal 2024, revenue increased 3% to $6.6 billion on both a reported and constant currency basis, and the gross profit was $4.4 billion with a gross margin of 66.8%.
The company ended fiscal 2024 with $1.8 billion in cash and short-term investments and $1.1 billion in total debt, compared to $1.6 billion and $1.1 billion, respectively, at the end of fiscal 2023. Inventory at the end of fiscal 2024 was $902 million, down 16% compared to the prior year period. The company repurchased approximately $121 million of class A common stock in the fourth quarter and approximately $398 million during the full year fiscal 2024. The market has reacted to these announcements by moving the company's shares 2.3% to a price of $168.0. For more information, read the company's full 8-K submission here.
