Restructuring and Other Charges

12 Months Ended

Mar. 29, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges, Net

A description of significant restructuring and other activities and their related costs is provided below.

Fiscal 2025 Restructuring Activities

During Fiscal 2025, the Company recorded restructuring-related charges of $20.4 million, comprised of cash-related restructuring charges of $15.5 million, primarily associated with severance and benefit costs, and non-cash-related charges of $4.9 million, primarily related to stock-based compensation expense recorded in connection with an employment separation agreement. As of March 29, 2025, the remaining liability related to the cash-related charges was $10.9 million, reflecting cash payments of $4.6 million made during Fiscal 2025.

Fiscal 2024 Restructuring Activities

During Fiscal 2024, the Company recorded cumulative restructuring-related charges of $55.8 million, comprised of cash-related charges of $54.5 million, primarily associated with severance and benefit costs, and non-cash-related charges of $1.3 million. As of March 29, 2025, the remaining liability related to the cash-related charges was $8.0 million, reflecting cash payments of $22.4 million and $0.2 million of non-cash adjustments made during Fiscal 2025. As of March 30, 2024, the remaining liability related to the cash-related charges was $30.2 million, reflecting cash payments of $24.1 million and $0.2 million of non-cash adjustments made during Fiscal 2024.

Fiscal 2021 Strategic Realignment Plan

From Fiscal 2021 through Fiscal 2023, the Company undertook efforts to realign its resources to support future growth and profitability, and to create a sustainable, enhanced cost structure. The key areas of the Company's initiatives underlying these efforts involved evaluation of its: (i) team organizational structures and ways of working; (ii) real estate footprint and related costs across its corporate offices, distribution centers, and direct-to-consumer retail and wholesale doors; and (iii) brand portfolio.

In connection with the first initiative, on September 17, 2020, the Company's Board of Directors approved a restructuring plan (the "Fiscal 2021 Strategic Realignment Plan") to reduce its global workforce. Additionally, during a preliminary review of its store portfolio during the second quarter of Fiscal 2021, the Company decided to close its Polo store on Regent Street in London.

Shortly thereafter, on October 29, 2020, the Company announced the planned transition of its Chaps brand to a fully licensed business model, consistent with its long-term brand elevation strategy and in connection with its third initiative. Specifically, the Company entered into a multi-year licensing partnership, which took effect on August 1, 2021 following a transition period, with an affiliate of 5 Star Apparel LLC, a division of the OVED Group, to manufacture, market, and distribute Chaps menswear and womenswear. This agreement created incremental value for the Company by enabling an even greater focus on elevating its core brands in the marketplace, reducing its direct exposure to the North America department store channel, and setting up Chaps to deliver on its potential with an experienced partner that is focused on nurturing the brand.

Later, on February 3, 2021, the Company's Board of Directors approved additional actions related to its real estate initiative. Specifically, the Company further rightsized and consolidated its global corporate offices to better align with its organizational profile and new ways of working. The Company also closed certain of its stores to improve overall profitability. Additionally, the Company further consolidated its North America distribution centers in order to drive greater efficiencies, improve sustainability, and deliver a better consumer experience.

Finally, on June 26, 2021, in connection with its brand portfolio initiative, the Company sold its former Club Monaco business to Regent, L.P., a global private equity firm, with no resulting gain or loss on sale realized during the first quarter of the Company's fiscal year ending April 2, 2022. Regent, L.P. acquired Club Monaco's assets and liabilities in exchange for potential future cash consideration payable to the Company, including earn-out payments based on Club Monaco meeting certain defined revenue thresholds over a five-year period. Accordingly, the Company has realized amounts related to the receipt of such contingent consideration (as discussed further below) and additional amounts may be realized in the future. Additionally, in connection with this divestiture, the Company provided Regent, L.P. with certain operational support for a transitional period of approximately one year, varying by functional area.

Actions associated with the Fiscal 2021 Strategic Realignment Plan were completed in Fiscal 2023 and no additional charges are expected to be incurred in connection with this plan.

A summary of the charges recorded in connection with the Fiscal 2021 Strategic Realignment Plan during the fiscal years presented, as well as the cumulative charges recorded since its inception (inclusive of other immaterial restructuring-related charges previously recorded during the first quarter of Fiscal 2021), is as follows:


	Fiscal Year Ended		Cumulative Charges
	April 1, 2023
	(millions)
Cash-related restructuring charges:
Severance and benefit costs	$	8.6	$	147.1

Other cash charges	3.9		26.5
Total cash-related restructuring charges	12.5		173.6
Non-cash charges:
Impairment of assets (see Note 8)	0.2		90.9
Inventory-related charges(a)	0.3		8.6
Accelerated stock-based compensation expense(b)	—		2.0

Other non-cash charges	6.7		6.7
Total non-cash charges	7.2		108.2
Total charges	$	19.7	$	281.8

(a)Inventory-related charges are recorded within cost of goods sold in the consolidated statements of operations.

(b)Accelerated stock-based compensation expense, which was recorded within restructuring and other charges, net in the consolidated statements of operations, related to vesting provisions associated with certain separation agreements.

In addition to the charges summarized above, the Company recognized income of $2.8 million, $7.0 million, and $3.5 million during Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, related to cash consideration received from Regent, L.P. in connection with the Company's previously sold Club Monaco business, pursuant to certain clauses included in the securities and asset purchase agreement. The Company donated this income to The Ralph Lauren Corporate Foundation, a non-profit, charitable foundation, which resulted in related offsetting donation expense of $2.8 million, $7.0 million, and $3.5 million during Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively. The income and related offsetting donation expense amounts during Fiscal 2025, Fiscal 2024, and Fiscal 2023 were all recorded within restructuring and other charges, net in the consolidated statements of operations.

A summary of the activity in the restructuring reserve related to the Fiscal 2021 Strategic Realignment Plan during the fiscal years presented is as follows:


	Severance and Benefit Costs		Other Cash Charges		Total
	(millions)
Balance at April 2, 2022	$	30.6	$	0.1	$	30.7
Additions charged to expense	8.6		3.9		12.5
Cash payments applied against reserve	(18.2)		(4.0)		(22.2)
Non-cash adjustments	(0.3)		—		(0.3)
Balance at April 1, 2023	20.7		—		20.7

Cash payments applied against reserve	(16.6)		—		(16.6)
Non-cash adjustments	0.1		—		0.1
Balance at March 30, 2024	4.2		—		4.2

Cash payments applied against reserve	(3.8)		—		(3.8)

Balance at March 29, 2025	$	0.4	$	—	$	0.4

Other Charges

Next Generation Transformation Project

The Company is in the early stages of executing a large-scale, multi-year global project that is expected to significantly transform the way in which the Company operates its business and further enable its long-term strategic pivot towards a global direct-to-consumer-oriented model (the "Next Generation Transformation project" or "NGT project"). The NGT project will be completed in phases and involves the redesigning of certain end-to-end processes and the implementation of a suite of technology systems on a global scale. Such efforts are expected to result in significant process improvements and the creation of synergies across core areas of operations, including merchandise buying and planning, procurement, inventory management, retail and wholesale operations, and financial planning and reporting, better enabling the Company to optimize inventory levels and increase the speed with which it reacts to changes in consumer demand across markets, among other benefits. In connection with the preliminary phase of the NGT project, the Company recorded other charges of $25.2 million and $5.1 million during Fiscal 2025 and Fiscal 2024, respectively.

Previously Exited Real Estate

The Company recorded other charges of $11.4 million, $14.0 million, and $23.8 million during Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, primarily related to rent and occupancy costs associated with certain previously exited real estate locations in connection with the Company's past restructuring activities for which the related lease agreements have not yet expired.