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Segment Information | 3 Months Ended
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Jun. 28, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company has three reportable segments based on its business activities and organization: •North America — The North America segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses primarily in the U.S. and Canada. In North America, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, and its digital commerce sites, www.RalphLauren.com and www.RalphLauren.ca. The Company's wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores. •Europe — The Europe segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Europe and emerging markets. In Europe, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. The Company's wholesale business in Europe is comprised primarily of a varying mix of sales to both department stores and specialty stores, depending on the country, as well as to various third-party digital and licensee partners. •Asia — The Asia segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Asia, Australia, and New Zealand. The Company's retail business in Asia is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. In addition, the Company sells its products online through various third-party digital partner commerce sites. The Company's wholesale business in Asia is comprised primarily of sales to department stores and various third-party digital and licensee partners. No operating segments were aggregated to form the Company's reportable segments. In addition to these reportable segments, the Company also has other non-reportable segments, which primarily consist of Ralph Lauren and Chaps branded royalty revenues earned through its global licensing alliances. The Company's segment reporting structure is consistent with how it establishes its overall business strategy, allocates resources, and assesses performance of its business. The accounting policies of the Company's segments are consistent with those described in Notes 2 and 3 of the Fiscal 2025 10-K. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company's chief operating decision maker (the "CODM") as defined within Accounting Standards Codification Topic 280, "Segment Reporting," is its President and Chief Executive Officer, who assesses segment performance and allocates resources based upon net revenues and operating income before restructuring-related charges, impairment of assets, and certain other non-routine items, if any. In addition, the Company's CODM is regularly provided each segment's gross profit and total SG&A expenses, as well as SG&A expense by category at the consolidated level. Certain corporate overhead expenses related to global functions, most notably the Company's executive office, information technology, finance and accounting, human resources, and legal departments, largely remain at corporate. Additionally, other costs that cannot be allocated to the segments based on specific usage are also maintained at corporate, including corporate marketing and advertising expenses, depreciation and amortization of corporate assets, and other general and administrative expenses resulting from corporate-level activities and projects. Asset information by segment is not utilized by the CODM for purposes of assessing performance or allocating resources, and therefore such information has not been presented. Net revenues, significant expenses, and segment operating income for each of the Company's segments are as follows:
|  | Three Months Ended June 28, 2025
|  | North America |  | Europe |  | Asia |  | Other non-reportable segments |  | Total
|  | (millions)
Net revenues, significant expenses, and segment operating income: |  |  |  |  |  |  |  |  |  |
Net revenues |  | $ | 656.2 |  |  | $ | 554.5 |  |  | $ | 474.0 |  |  | $ | 34.4 |  |  | $ | 1,719.1 |
Cost of goods sold |  | (242.1) |  |  | (171.2) |  |  | (82.3) |  |  | — |  |  | (495.6) |
Selling, general, and administrative expenses(a) |  | (278.6) |  |  | (237.1) |  |  | (246.3) |  |  | (3.8) |  |  | (765.8) |
Total segment operating income |  | $ | 135.5 |  |  | $ | 146.2 |  |  | $ | 145.4 |  |  | $ | 30.6 |  |  | $ | 457.7 |
Reconciliation of segment operating income to consolidated operating income and income before income taxes: |  |
Corporate expenses, net |  | $ | (164.8) |
Restructuring and other charges, net(b) |  | (19.3) |
Operating income |  | 273.6 |
Non-operating income (expense), net |  | 4.4 |
Income before income taxes |  | $ | 278.0 |
|  | Three Months Ended June 29, 2024
|  | North America |  | Europe |  | Asia |  | Other non-reportable segments |  | Total
|  | (millions)
Net revenues, significant expenses, and segment operating income: |  |  |  |  |  |  |  |  |  |
Net revenues |  | $ | 608.2 |  |  | $ | 479.1 |  |  | $ | 390.9 |  |  | $ | 34.0 |  |  | $ | 1,512.2 |
Cost of goods sold |  | (226.8) |  |  | (158.3) |  |  | (74.0) |  |  | — |  |  | (459.1) |
Selling, general, and administrative expenses(a) |  | (261.6) |  |  | (200.2) |  |  | (209.7) |  |  | (4.4) |  |  | (675.9) |
Total segment operating income |  | $ | 119.8 |  |  | $ | 120.6 |  |  | $ | 107.2 |  |  | $ | 29.6 |  |  | $ | 377.2 |
Reconciliation of segment operating income to consolidated operating income and income before income taxes: |  |
Corporate expenses, net |  | $ | (161.3) |
Restructuring and other charges, net(b) |  | (7.4) |
Operating income |  | 208.5 |
Non-operating income (expense), net |  | 8.1 |
Income before income taxes |  | $ | 216.6 |
(a)SG&A expenses include costs relating to compensation and benefits, marketing and advertising, rent and occupancy, distribution, information technology, legal, depreciation and amortization, bad debt, and other selling and administrative costs. (b)The three-month periods ended June 28, 2025 and June 29, 2024 included certain restructuring and other charges, net (see Note 7) that are excluded from the segment profitability measure utilized by the CODM, which are detailed below:
|  |  |  |  | Three Months Ended
|  |  |  |  |  |  | June 28, 2025 |  | June 29, 2024
|  |  |  |  |  |  | (millions)
| Restructuring and other charges, net: |  |  |  |  |  |  |  |
| North America-related |  |  |  |  |  | $ | — |  |  | $ | 0.4 |
| Europe-related |  |  |  |  |  | (0.1) |  |  | (0.9) |
| Asia-related |  |  |  |  |  | (1.3) |  |  | (0.6) |
| Other non-reportable segment-related |  |  |  |  |  | — |  |  | (0.1) |
| Corporate operations-related |  |  |  |  |  | (4.4) |  |  | (1.1) |
| Restructuring charges |  |  |  |  |  | (5.8) |  |  | (2.3) |
| Other charges (see Note 7) |  |  |  |  |  | (13.5) |  |  | (5.1) |
| Total restructuring and other charges, net |  |  |  |  |  | $ | (19.3) |  |  | $ | (7.4) |
The following tables summarize depreciation and amortization expense and capital expenditures for each of the Company's segments:
|  |  |  | Three Months Ended
|  |  |  |  |  | June 28, 2025 |  | June 29, 2024
|  |  |  |  |  | (millions)
Depreciation and amortization expense: |  |  |  |  |  |  |  |
North America |  |  |  |  |  | $ | 20.6 |  |  | $ | 20.6 |
Europe |  |  |  |  |  | 9.2 |  |  | 8.4 |
Asia |  |  |  |  |  | 13.8 |  |  | 12.5 |
Corporate |  |  |  |  |  | 11.9 |  |  | 12.9 |
Total depreciation and amortization expense |  |  |  |  |  | $ | 55.5 |  |  | $ | 54.4 |
|  |  |  | Three Months Ended
|  |  |  |  |  | June 28, 2025 |  | June 29, 2024
|  |  |  |  |  | (millions)
Capital expenditures: |  |  |  |  |  |  |  |
North America |  |  |  |  |  | $ | 129.6 |  |  | $ | 9.0 |
Europe |  |  |  |  |  | 7.2 |  |  | 6.6 |
Asia |  |  |  |  |  | 12.1 |  |  | 8.4 |
Corporate |  |  |  |  |  | 38.4 |  |  | 9.4 |
Total capital expenditures |  |  |  |  |  | $ | 187.3 |  |  | $ | 33.4 |
Net revenues by geographic location of the reporting subsidiary are as follows:
|  |  |  | Three Months Ended
|  |  |  |  |  | June 28, 2025 |  | June 29, 2024
|  |  |  |  |  | (millions)
Net revenues(a): |  |  |  |  |  |  |  |
The Americas(b) |  |  |  |  |  | $ | 697.0 |  |  | $ | 647.8 |
Europe(c) |  |  |  |  |  | 548.1 |  |  | 473.5 |
Asia(d) |  |  |  |  |  | 474.0 |  |  | 390.9 |
Total net revenues |  |  |  |  |  | $ | 1,719.1 |  |  | $ | 1,512.2 |
(a)Net revenues for certain of the Company's licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license. (b)Includes the U.S., Canada, and Latin America. Net revenues earned in the U.S. during the three-month periods ended June 28, 2025 and June 29, 2024 were $657.8 million and $615.5 million, respectively. (c)Includes the Middle East. (d)Includes Australia and New Zealand.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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