Ralph Lauren (RL) 7 Nov 242025 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Ralph Lauren Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions]

As a reminder, this conference is being recorded. I'd now like to turn over the conference to our host, Ms. Corinna Van Ghinst. ahead. go Please

Justin thank for Fiscal and caller. Patrice joining Lauren's that open to Officer; Ralph the prepared limit Officer. Good we you questions, remarks, Conference you which Call. Quarter will and Executive Chief XXXX President the are per Chief With Second Financial company's After call morning, up and for Picicci, your me X Louvet, ask today we

adjusted basis. today's on currency During our a will financial discussed be call, performance constant

Our foreign in including reported morning's this found results, be can currency press release.

some also be financial statements will of We meaning the securities making our forward-looking including within laws, the federal outlook.

statements or Forward-looking may expressed implied results in actual the and not are forward-looking our those differ materially from statements. guarantees,

principal refer our our found expectations To this we on could discussing be expectations and risks over that, non-GAAP use Relations Our SEC to earnings in our can reconciliations uncertainties release I to morning's Investor uncertainties of results our when the website. that financial current differ SEC measures that contain to cause materially are call turn and With you our from detailed disclosures filings will and filings. our results, many risks Patrice. find and to should that and

with and thank momentum Good Corey. geographies quarter season morning, the across for you, assortments, second Thank call. our product channels. everyone, you continued delivered entering today's holiday important strong and brand We joining performance are and

increasingly growing base of engagements desirability and genders, powerful quarter elevated diversified and the through of and our and year markets. across an the performance half brand expanding consumer with generation our Our the underscore growth strategy, first strength our

key gross we environment. city to execute chapter and second drive strategy. accelerate brand-building In remains operating on into next as sustainable across reinvest growth line, and the our quarter, initiatives our This expectations excellence operating margins Around enabled what with a global back our top through our well teams choppy the to ecosystems as the to ahead. world, continue outperformed great us

delivering double-digit retail region Our across every business growth. comp performance once again led our

continued further of the power our the discipline profitability time, Retail the organization year, in another for improve and reductions discounting. same ahead us continue balance we enables one of strength more Our strategic expectations. operate At brand while elevated our all in expectations up sheet. strengthen AUR management a priorities, expense growing XX%, delivering of invest on was ahead the last to growth of our This behind desirability X% across and is marketplace. barometer to with on brand pricing and positioning top our our to our

gives of of full to us All ahead holiday. our outlook take this year up confidence the

we through where strategic Let highlights me our few take a drove from you quarter continued progress X pillars. across the

our core and cities consumer with lifestyle First, energize reminder, expand win more, As third, and elevate and our second, ecosystem. include: the drive a for these brand; in key

First, energize lifestyle on our efforts to and our brand. elevate

and connect to are on we our to have with New in that most to to and build We And York from Milan brands iconic Shanghai, world. the consumers Tokyo legacy created engage Ralph one the teams and to Paris the of beloved L.A. proud continue as

heart exception, the Lauren's This at Ralph was of culture. highlighting quarter place no

successful of Team serve Olympics Cruise first, our cherished Eilish, Ralph Beyonce, games inspiring XXXX athletes and moments personalities and of honored as of USA for the partnership From summer quarter Jenner, center celebrities again and front and a ever. our Some timeless Tom sporting the media Kendall the the Lauren from our looks, all Paralympics, on-air Billie second brand our were one to official Paris most to in like was the exciting XXXX. included, once sports. We since spectacular of summer outfitter

brand during brand Olympics. competitors. fashion collaborations, athlete Ralph outpacing According our our and third-party metrics to Supported by the was both luxury most Paris visible Lauren #X athletic the

We also a official Zendaya, ranks this range as Mark America star, VIC amplify Lee our Wimbledon of and of influencer of dressing outfitter to including perhaps successful celebrity, stars our our of one and K-pop consistently year. Closing through Year. at like the out electrifying of Brosnan activations, grant U.S. of Open, Wimbledon. championships the global climb XXth sponsorship the as year events Pierce year the the continue celebrated teams our most summer, North the most

kicking polish as were exceeding of delivered significantly court expectations, campaigns awareness, brand Together, long-term September. the driving court. our world Our stunning summer Spring this in And than Hampton, Lauren impressions only the Ralph matched York retro-inspired more on Fashion advocacy XXX uniforms sports desirability. globally, show these style New on 'XX PR and focus the off we of by billion Week, our runway

Watts, strong, Inspired also The event to Naomi natural drive than billion together elegance Jude impressions of K-pop and million new the and record spirited These free driving only helping online. others, many more and in growth activations do. acquisition among by brought customer living Winter friends coastal XX as sustainable Naomi Ralph engagement. beauty show of of are Star the Law a including can views XXX PR brand, Campbell, the many and

year. to led last businesses, was increase new this In single-digit our with second value quarter, added to price-sensitive predominantly and trends, million the higher a we DTC younger, X.X Consistent recent less acquisition cohorts. consumers by customer new high

to Line, TikTok increased once double competitive by Promoter digits, our and Instagram, grew to surpassing and brand Our million, double by grow search Scores our last consideration high America And led we our media Douyin. Europe, year, again Threads, globally, outpacing online and and by continue social significantly set. led XX low North digits Net followers

more. create initiative, reimagined Ralph second way the core and modern design continue key and styles for customers' Moving expand to drive our next for of sophisticated our to living. our teams timeless,

highlights second total in from growth mesh sport full represent of with caps. more by opportunities the core XX% to cable enables show cashmere our recognizable powerful the company our Polo net growth to encouraged potential. Starting with up Polo we elevated handbags, product direct-to-consumer shirts, business. order wool our products, core quarter. included which leveraging Sales offer digits original our of together our We're coats was of and example jackets, also which like portfolio brand's quilted Polo great and strong the than in including of in Our Hampton Style our how us double a are a our highly iconic were realize baseball products. newer sweaters, low more within assortment label, outerwear, long-term quarter Polo channels. Core our ahead

sweaters, outerwear drive shirting, foundational our increased continue Women's our company net this highlights anchor pieces her as to strategy barn we women's together relaxed modern rate work quarter Our apparel, mid-teens, programs, to outerwear our total and including and of jackets. and high-potential and handbags, categories, cable strongly including dresses, growth wardrobe. included bear outpacing

against portion year. performance quarter, our towards third of expansion included first of Within and handbags, America, to Denim our Ping denim fight led gross releases Pony by fall. with Other towards this a final strong U.S. capsule, the last Open again growth Polo we for of drop collection Women's of end this celebrating latest with Noemi and as margin launched cancer. going compared proceeds our our the we our the silhouettes residence, quarter exciting drove artist the supported Glasses; fabric in expanded collection once double-digit Daydream, and Polo ID

of and cancer part in Pink Lauren's an to underserved treatment Ralph remains important decades-long prevention Pony commitment communities.

our our key remain our to key Turning developing the in third initiative, We with consumer city ecosystems focused cities around win ecosystem. on key world.

growth points. and elevation accelerated also Our of touch across comp channels our in markets. our all our X/X of drove consumer both ecosystem while consistency Within business, quarter approach this and which expanding comprises presence delivers DTC, key we

our our during was in Asia. we were digital above top largely opened Shenzhen, line Comps period up expectations. and among new our stores This brick-and-mortar Tulsa, while stores, with focused our plan. channel Store opening highlights Wuhan others. included cities, was in XX Giverny, led the owned and XX%, on partner outperformance by Globally,

this to By strong across DTC execute followed And outlook. Growth Europe, our more on America led This North ongoing markets. normalized quarter of well this in where growth wholesale and strength by a our key up to ahead and region, slightly XX% growth quarter continue teams returned trend. was was by mid-single-digit importantly, Asia, in

up at on again more low top last was teens This new than year. driven comp revenue stores was full customer newer acquisition, once solid of this XX% by Douyin. new China growth, and double-digit like of quarter expansion on price growth concessions specifically, Looking combination a and platforms

business our to foremost, Our building focus, consumers. Chinese first brand with on desirability as domestic continues grow we and

currently China only sales. of reminder, a represents company our total As X%

market. focus developments, And on in are still key our behavior opportunities disciplined macro as clusters the city we with our significant we expansion remains ecosystem monitoring X along and closely, largely ahead. long-term we While see consumer geopolitical

our on touching finally, And enablers.

published to Our by programs our business and September, business. to leverage X our future by that timeless manage enablers. sustainability opportunities in continued and progress design outlining In our report, risk our supported annual both delivering key proof be citizenship we

part Notable a with creating XX% innovation Paris our we highlights cotton, first as sustainable to collection sustainable summer. greenhouse of emissions our gas continuing to Olympics sources across absolute chain, Shirt recycled our in value reduction ever energy transition include as more drive achieving Polo this and XXX% materials,

diversified by in on focused In fiscal delivering progress half growth of remain of spite our ongoing team's the first closing, strong Building on operating terrific execution we our I the strength Ralph the in are environment. and year. brand this of energized broader consistently and through drivers, volatility timeless

still gets as and have momentum underway, are holiday offense. firmly ahead Looking we the we season on

in can We control. are long-term what on elevating on further while brand marketplace plan, game executing focused and remaining positioning we our our the

over the answer the with us to I'll financials, at end And it join walk that, questions. and your hand to I'll Justin through to him

good morning, and Patrice, Thanks, everyone.

We to and drove our every expectations diversity brand. desirability strong quarter off is momentum the continued with key ahead a 'XX the our strategic metric, fiscal our across underscoring growth of drivers, start. along of results of Our growing second

to and our quarter in by our additional driven our in channel. disruptions performance to enabling us better-than-expected growth Gross mitigate plan, margins, supply and Second building chain operating upside outlook, exceeded revenue while digital. were brand margins with also above investments fueling gross also direct-to-consumer

me first from regions expansion, raising currency gives May. walk and navigate to financial provided to through let contributed us the basis. continuing all through get confidence full on year second you are our constant to while the year uncertain in the But X highly we a as of a highlights reminder, margin I in the of half achieved operating operating This All quarter, a global we progress guidance, environment. which, outlook before back introduced this

accounts, company X% once our our increased of high each outlook, our regions. exceeded grew digital comps channels. again led by penetration including sales, we retail second selling digital as quarter digits. Total XX% our our in sites company single growth increased direct-to-consumer Total Total full-price revenue of and of own wholesale ecosystem

company Total discounting in growth consumers full cotton basis region reductions outlook adjusted favorable costs. price full margin businesses, AUR increased lower offering. performance XX% and our gross greater-than-expected in positively towards our as the This to driven points strong XX.X%. across shifts XXX mid-single-digit driven by was AUR to by expanded exceeded every 'XX responded This mix quarter. second international our and

growth for to growth AUR Our product. half this and continues benefits, AUR fiscal mid-single-digit the also channel, by We geographic pricing supported as less long-term on of the we mix rely like-for-like second be year still year. expect

increase campaigns up XX.X% to investments, grew X.X% year. XX which The driven Adjusted represented of expenses operating by X% quarter marketing timing the planned basis of last sales, of and acquisition sales the to points this included was sponsorships. customer our in new long-term USA brand Olympics driving on our at and Key the Spring Team show desirability. 'XX Slam Grand focus Hamptons, we runway as

X% to second about at half the full marketing sales, continue year, expect the of lower We in implying notably spend in of QX. year

flat expanded operating margin marketing, adjusted XX.X%. Excluding our as to XXX points our corporate to expense reinvestment offset rate by business savings. digital cost to basis was year increased adjusted And was drive last operating

up Moving with North performance starting back expectations. to and inflected to segment second and revenue quarter X% America, growth, exceeding our

Brick-and-mortar X%. normalized X%, planned and America a which from stores. quarter both trends. were momentum accelerated with second in than retail offset in price modest In wholesale, full decline Continued North comps comps QX in up strong growth outlet Retail, to more

comps digital X%, invested we improving Digital targeted declined marketing, in new more merchandising and enhancements under as leadership. sequentially site

in business decreased wholesale quarter. digital positive encouraging single-digit Our full-price America X%, this sellout our remained with quarter. North the high with wholesale revenues sellout Total line in

increased AUR trends on channel. recent mid-single stronger the wholesale than in inventories Our well-positioned digits,

remain to of continue the We sellout to year. with the our sell-in wholesale through fiscal expect generally aligned remainder

doors Our of department includes planned outlook still the year. exit XX this store fiscal

door-by-door and results, the are While on proactively to ongoing basis. brand continue evaluate a to presence material our exits refine not financial our we

Moving to Europe.

are Second year, growth In the key retail the our quarter by increased of underlying trends quarter Europe strong revenue increased U.K. our X%, in exceeding delivered where performance comps well exception the All with driven XX% last across markets retail, channels. to expectations. improving.

ever across balanced top last digital especially rates driven AUR grow our delivered by of performance a down our environment. Within France to channels. off-price year's elevation of below and high second sales was single-digit related Red and continued to promotional our France, year sports, Growth Europe delivered to slightly high to excess last Europe to full timing Within low the brand shifts significantly by of year and half outlook strongly including growth, both brick-and-mortar our fiscal discount women's next-gen the DTC, in marketing and single-digit our receipt scores growth in strategic despite were by with competitive Sea around summer which increase, the encouraged Germany, brand led increased single-digit our reflecting by supported this consideration the our highest we in year consumers, Olympics. and specifically, we reductions of channel quarter. disruptions. on wholesale amplifications

mid-single our growth up these wholesale would been the approximately quarter. in business for Europe digits Excluding underlying impacts, have

we lap of half in Looking pure-play place compares still second year. digital expect restocking took we challenging that as in our ahead, accounts the last significant

and dynamic Europe growth strengthening trends and from improve encouraged based into half wholesale we shifts strong the especially the perception That expect and receipt remain our execution We the region. on the Europe, by solid said, ongoing operating sequentially the in in given team's QX of brand total 'XX, fiscal to second underlying environment across QX. QX

of Turning Retail to and top in stores. in last increase Asia. all growth XX% strong X% comps Revenue with increased XX%, reflecting both growth an markets. on year, brick-and-mortar were up digital

and accelerated full-price selling exceeded our and to quarter China. by and grew in outlook, continued low supported from stronger tailwinds marketing from led performance tourism. Japan first by results key last trends, teens Asia Japan inbound strong year campaigns,

high-quality China our year, also consistent with growth, outlook full customer and driven for recruitment new low quarter grew teens, and comp distribution. the expanded by

the balance to Moving sheet.

sheet strong be in year-to-date, to $X.X make approximately million investments long-term even of total cash us Fortress allowing debt. continue cash repurchases our in to this strategic balance dividends and generated quarter key while make continue in the in growth the of and technology We Our our and ecosystems. We with shareholders. to investments Foundation, cash and $XXX of enablers form cash business in billion $X.X flows as we billion ended share short-term free returns returning investments brand, about to fiscal enabling $XXX million important in our and

last decreased despite last improved our related inventory with supply to disruptions to year, Weeks the in plan. X% Sea. Red Net versus year line of ongoing

Coast regions, season Our in October. despite inventories heading the early are positioned holiday our America, well of X-day each including the East into strike North in port

along supply diversified and West in agile receipts Coast, air anticipation and to select to to ahead of holiday inventories with protect our closely portion fall leveraged the negotiations teams end generally our next to in chain of of contract potential monitor freight revenue a incoming reroute preemptively Our a the 'XX deadline still to fiscal supply we of expect We with growth. for strike. And mid-January. continue aligned use

spending volatility related our other inflationary macroeconomic chain our headwinds, ahead, among remains as foreign of considerations. includes well pressures best the This disruptions Looking consumer current outlook geopolitical the and environment. on as and assessment backdrop supply currency based other

to in approximately expect range X% For to X% 'XX, up X% now currency of fiscal to revenues we constant X%, increase previously. from the

stronger include to markets. in international our continues and DTC outlook growth Our

about primarily down improvements basis by XX points to basis rates. points, in FX negatively Foreign from revenue driven growth currency to expected impact previously Asian XX XXX by is now

a be offset partly is of in the outlets year's the shorter to into into window expected year's due roughly and to year. be to America of this earlier dates a this post-Christmas our sales QX to With fiscal Christmas negatively shift day in Thanksgiving by timing impacted These quarter regards revenue headwinds Europe this cadence, third the holiday expected a Boxing X-point shift digital by and of including timing sale are selling North comps holidays, QX.

quarter Our shifts which a impacted fiscal by 'XX. late of also negatively fiscal fourth be will QX Easter, into

these QX remain to base slightly operating relative to and from deliver QX period, firmly We our solid expect Day target pieces, fiscal previous of range now expect of growth outlook our in us all to 'XX to this deliver Despite currency moving our keeps trends expand XXX comps. in both this underlying XX% up XX.X% confident year. on our Investor to margin to we and XX.X%. XXX operating basis points, In about to margin track constant a our

gross and driven expand XX and into raw expect foreign margins shift from non-cotton by impact a AUR international offset to points. to operating businesses, costs more negatively growth headwinds price points, And 'XX, costs. our continued margin are labor, towards in basis to currency fiscal These to cotton DTC mix expected by lower drivers our rerouting We incremental XXX full gross and favorable expected the basis is from the Coast. material for East XX U.S. inventories about than and

constant from X% Europe to to a improving sell-in continue is expect For back shift X% quarter, the aligns wholesale led channels. currency, we from more in closely North year. of America into third in first sellout our the sequentially by trends, receipts range half QX fiscal expected revenues of the the DTC Wholesale half increase to and as

XX by benefit to is basis currency to Foreign approximately XX revenue expected points.

and to expected be have line currency We approximately basis operating expansion. in expected to sales a quarter. year to percentage as the gross expect gross last the on impact support margin third points constant roughly third in XXX third activations by both And fourth roughly is driven margin Marketing in currency, quarter lower is with XXX margin holiday to in operating expand neutral of our quarter to a quarter. the global foreign and in

our around of expect XX%. million. 'XX And the $XXX year, fiscal XX% to rate tax while be full the lastly, still We to is third range quarter $XXX includes the the be range million rate to our in of XX% in to for outlook CapEx expected

our are the remains Ralph dedication to and team's we brands environment. All continues encouraged by brands to authentic us are and equal, powerful highly high-potential strongly on focus businesses, credibility we grow closing, core a most in one also And and created the not our categories. be are expand momentum. not our In globally. but continue This our gives execution, uncertain global of operating what Lauren only building to

Ralph's vision bring And and continues geographies. life will thoughtful to expansion supporting life dream to across over a of this inspiring we to the near term. longer and the resonate the remain businesses committed vision of generations that better the of

With let's your the questions. open that, up call for

[Operator Instructions].

The with Boss comes Matthew first question from JPMorgan.

another on nice really Congrats quarter.

key of you can outperformance you China, a seeing Could outsized been consistent in momentum Europe be your what level enablers sustainable? more that international growth elaborate confidence on and So of than you're that has driver a gives this now. the year the for driving

with operating currency that now margin remaining? margins you year, drivers Justin, tracking multiyear speak then And could to to you mid-teens constant this see

new with right our team's to in France highly every has engaged want markets we we're by customers. quite execution Japan, are elevation, driving been performance whether operating saying existing a domestic really yes, that start you proud Germany, region what of international really and demand China, look in But strong I or our key hasn't at driving particularly now. been Italy, And environment. easy in we're

our in have strategy continued ahead. increase As you confidence this is morning, our saw momentum guidance we our and delivering, in

to call I So core you, going familiar why Matt. X And would that is sound to reasons out that? are

behind. and unique, timeless that brand. First, nurturing are we very a we have investing

investing summer, of and U.S. is serving You really but brand, the this rolling just from that and cultural well not around during just remain mindset holiday, an fashion committed and holiday, the saw the Open our this us thunder Hamptons the with to not to with we And to a in incredible in activations ranging always-on an very in world. the Olympics marketing more. to Wimbledon show

breadth of is point that this powerful geographies our this style, double is ranging the of our brand across timelessness are was like like foreign that's portfolio the of an And and lifestyle it's enduring again. really core, designing and products bags quarter will more And XX% quality, delivering from that's Polo up with innovative is items This of product broad true teams depth flex across fashion competitive second business The jacket, digits, to of are our our right, this have consumers. this core based you like with and up our XX consumers, Ralph codes and strongly in cycle market. our that generations. And foundation was resonating and edges trends company really fragrance. resonating Polo on so and heard performing think ability I about ever to Lauren that IV range recent

The is back have think key But Tier we of well we third elevated all in America, America And some the strategy. where like on starting implementing see We similar call. be of with strategy, comps belts them in X. North a cities, North up Europe, we've brick-and-mortar China, our to performance a our general, the strong, inflection encouraged by zeroed across we're in stores. under growth in I latest of places we talked right? we're comp growth in X go-to-market with underway This quarter, cities, and with are X the point quarters is top across seeing our proven

it repeating. So said is before, on Lauren environment, firmly Ralph it listen, volatile bears I've a but offense. In

have momentum. We

working, strategy executing to we're and agility keep multi-lever with excellence. and going is Our

And to answer margin question. with turn that, over I'll Justin to your it

Matt.

on on while focused what that's to we're making you've the And for balance continue our right? So that's investments delivering term. going considering our with also margin to deliver We'll and on longer seeing. the been targets, on consistent commitments, margin question, delivering

us ceiling. to on we're margin that this fiscal Investor track target growth, 'XX up, $XXX expansion We XX% XX%, expansion, Day to on investments took deliver up $XXX driving that long-term guide not is margin continued points firmly of could along but operating we with to to our a implying million year's strategic We're basis for to going focus continue in our the likely marketing, levers margin a And brand strategy that margin 'XX into you think beyond by we've expansion as elevation expense upside perspective, the we longer investments scale durable the expansion make. a reinvest fiscal continues. will be combination if talked of from that it see modest the term about example. strategy, for And we gross and leverage million supported with

comes UBS. question Sole from next The Jay with

Justin, Ralph further can pricing? maybe environment much pricing you how talk less about think your Lauren's through go you a favorable you ahead? pricing power confidence in And can do with

Patrice, just the full-price And how talk about that year the opening in then beyond? the potential you out on U.S. looking view and next in quarter store maybe, and of your stores the impacts performance can

this elevate brand to continue Our off as this inflation. to coming these invest important few growth for to that brand. investments and X-plus building of has lot in mid-single-digit we years our an years pricing also And And investments, know, took work these we And you to offset cost for brand of the backbone a we'll been over like-for-like pricing we've in a last AUR beyond. holiday planned see year, power. our and put

longer-term the durable term, illustrating. AUR on less like-for-like near our drivers flexible, and mean remarkably they're in we are As

Consumers the our investments clearly our into tapping product of into our in like opportunities women's the hand icons category we're in experiences on elevated higher end bags. like gravitate is core outerwear, starting assortment So with like our side, are elevating, marketing, and quality. still our

customership of around you'll see of at with high-quality mix back lastly, This customer price shopping price the customers that consumers, distribution focus time. promotions meaning with Another particular really start brand this continue at in growing us us they steady enables us over less acquisition, to changes muscle and high-value is and on our pull on bigger and strategic discount discounts newer with in a benefit full and to full AUR channel regions. And all on and focusing invest enter who baskets. across deliberate our to geo

or may in the we demonstrated other is environment when be, macro up including more adapt we've current environment pricing various to whatever So consistently to fees can down levers current or flex competitive. the that

it these of both move it's we past that few we AUR, and over an in to there, come quarter more the margin. turn, and seen forward. outcome And And ultimately as years, drives and drivers, gross we've solid of expect in expansion the

store Lauren on stores, full the last listen, to Jay, actually here. the a quarters America price with by stores lead performance Ralph model we in consistent right? well, have North question, full-price working driven that's our So traffic, continued XX

disproportionate despite women's which to contributor and strong the continued has been who elevation we're you full performance. I things of full-price to from think to highlight we And are that. growth, momentum those strong experienced hopefully, a our compares, get chance drove and stores, favorable in continuing our our efforts you a visit from mix selling price

are price making I was full discounts further actually supporting earlier. down promotional Our QX, the point in

So in feel momentum we have very the our we about full-price good stores.

consumers, in by in the showcasing really is North America these new we're excellent team in with an are for. encouraged doing making openings. store that consumers products driving job Our client engaging I'm selling, progress looking stores,

that. into leaning still we're So

We the America. opportunities in North have around many world and

Investor guided America. Day, X.X years North that XX full-price to You'll open at ago, XX recall, we we stores would new in

We that. for are on track

to San happy return Lauren I The one, Francisco to believe, the Francisco. actually with we're next store. On Jackson Street, San is Ralph in

consistent we're really these And pleased and expand about about that part stores, of in America what see around continue And to our from we're that is North also that. disproportionately, to the going seeing footprint. drive standpoint So continue business the flow-through us excited in the world. to you're a profitability

Binetti from Evercore ISI. with Next Michael question comes

you work. positive be like? sellout On to U.S. the calendar are this know I this pace forward wholesale on quarter. what orders you X% it year nice 'XX quarter, a here. a from on at Could looking And the A trend initial Congrats are you're me. what couple or at close said for based down guys should seeing? in busy maybe

next the SG&A, to while plan. growth be you Justin, then exclude about to revenue timing it multiyear sounded X% I'm start on we on can And see a how you about SG&A, to leverage? growth. and marketing, a think lever that when marketing was SG&A curious, mid-single-digit in will driver pivot to on start bigger flat if SG&A excluding

Sure. Michael. Thanks,

seeing performance, encouraged. did in saw So we single America outperform are that are continue to wholesale city shoots on the tier you And We're seeing key expected, our well. as in low align our there We we doors the at apart, that We're really quarter. work when sell-out green QX more top and upper seeing digital and digit. outpace North fleet, sell-in we're see, pick down there. distribution we the

shoots green say leaning we're some certainly, into. that So

As you back stabilization for low encouraged the we of by year, stabilization. the know, of that kind down of the but single calling certainly through as half we're digit hedge a

On leverage. the guidance fiscal this you as SG&A implies for leverage, our know, year, SG&A

brand As on delivering the we balance term with our to saw the growth again this quarter, reinvesting we drive and to short upside business continue behind term. for longer

first and you our the And ex SG&A at as out marketing. you in when marketing QX, had mentioned, in some rate leverage half strip was deleverage. year, the of delivered we QX, looking half the of flat in the of which of we which in big shows, and last have didn't like brand the Olympics the our first some year, fashion drove year, moments first the We half

So by choiceful guide, both up profitability taking we're decisions making seeing and seeing year through longer brand, play still, that behind also we're the our then in current and you're through. way, we're right? the it for And So the flow our term. to invest

we last rate out is timing smaller take the marketing a first which in notably Overall, in quarter. QX, if looking the half. we're ahead, marketing to delivering expect versus And leverage quarterly of our year, rebalance you

I around some reinvest expenses to So we feel good decisions our that and the control making pretty we're we about think have of upside.

To delivering the again, revenue full plan we've our point we some and much DTC on I your the leverage we're optionality, we've the growth, year. on I leveraging with stabilization and there think with got growth that wholesale that think do pretty seen, for

comes Telsey Group. Next Telsey Advisory question from with Dana

up from low you channels? beginning, double up last have both from given basically How new then you customers, the the you core up that think Is too? from singles the progress And Is the digits of a accelerated categories is made follow-up. the part low you and driver, the all that see mid-teens As I assortment in up low mid-single of potential it globally? increasing digits. it in high quarter. digits where resonance that And mentioned do double

Sounds good, Dana.

can't your wait for I So follow-up.

lineup Justin concerned is jumping and far the the it's as a actually is product up bit. world, resonance very Listen, consistent. its around as

in and in on is our could in go and Seoul, core on. Tokyo So resonating in I Shanghai, Milan,

right, very really for So knit consistent or we're coats, to that's shirts, our leaning item, our to exactly Polo and sweaters that. into foundational And Cable exciting sports seeing response we're see.

future the at really think worried turn where their the world they trust. more on a they're are I they spend about they product consumers the money the brands they around where turn how discerning categories time know, they

has in obviously, categories. incredible these Lauren Ralph And credibility

for phenomenon. a been to We've to first So you're see for our result the more. seeing and X in it's strategy, the that quarter expand then part a and the focus while. of core on is It's not going around which that everywhere world,

a same I highlight and particularly resonate the the been potential category, mean, few story. over women's, particularly doing this are Polo real On everywhere we seeing quarter, past driven quarters the high certainly around world. that Women's, by well

to in when outerwear, supporting in sweaters, we're obviously, bear or And North the young women our or Polo whole but true that. Europe and strong is of Asia, And America. driven handbag consistent Same And ID collection, opposed then is really of be which as you'll you the business cohort. the for really Polo growth shifted the consistently that in see travel lot resonating pleased with right? by whether world. here progress, cap see an and we've or seasonal outerwear. seen on season I This that now around we're we that's to a business, is business that really a with and younger always-on Again,

right? confidence not one is This region, one One forward driven by of the is our product things performance, that moving of the category. one channel, gives us breadth

out We world. here. and pretty around really have performance it's growth a diversified We're very consistent seeing playing model, the

North the saw DTC digit, that's back true comps double You now world. around pretty America growth, to and

game seeing around the So cities, very top but focused consistent world, very on we're key our response. running plan we're consumer consistent the

don't lucky give... you You had you're very follow-up data, a which

I know.

your this how in what you directly And of are comes goods Justin, you imported? to just -- -- from How adjust about one much how do tariffs, For is pricing think a percent so China? and much as including or sourcing either end the consumer?

Yes. Thanks, Dana.

and well global positioned. sourcing chain and supply agile our is So

as for really production and and the us that for strong a sourcing well over key we've same single-digit our the served sales around the is alternate percentage beyond. well footprint years as near-shoring And part diversification, have been globally China as now regions our And diversified for units significantly us X-plus We our our penetration. partnerships of developed represents about key that through China pandemic past high differentiator of that's and as world. sourced the about global categories product capabilities

long future So navigated we'll what, remain and and to we've any, opportunities not any tariffs going risks to gets including continue agile develop disruptions. policy see ago, passed, proactively to successfully but chain mitigate wait ultimately scale so before, and supply if potential new and and global we're

comes Kearney question Paul Capital. Next Barclays from with

significantly already drilling the Just results staffing the the reasons, in some that performance on and outlet and of quarter. some detail you made the Europe versus product? changes but in drivers from about to can the the all North the then what for you on think in Patrice, provide on expectations? of sales. of through, came year? ahead how are that stores expectations And comp further of your remainder And you the went for In store America, down have

Sure.

North where comp So with picking our kind performance we stores really brick-and-mortar continuing our kind that America step lead performance, single pleased up of solid trends, a high just of back, full to on our momentum, digit with the price continued really, saw traffic.

we the traffic. outlet saw of the acceleration, backs really, some really also really off strong On side,

and I QX. expect conversion pickup we kind did of against we forward, to compared QX. see also So able strength, holiday in a outlet an and about traffic we continued And we DTC, see we as shift picked drive so we're we were up sales period, kind of a end-of-season have know think to up think compressed but in going for general

expect growth that moderation but do it's a in momentum, forward. we bit a continued look So as of we

side, I operating that up And you we think the Europe so the half dynamic feel be by a operating to took very our strong we the it guide context we're environment. first outperformance. think in, continues on really -- On We're encouraged Europe. about really

underlying initial taking end ] of noise, QX all trend south in take behind we trend So us, up you outlet out the feel to good performances our growth underlying markets key ex was [ that higher when of healthy some quarters which guide. across the the U.K., X the the growing off-price of

plus end. that higher and range with end leaning So wholesale towards mid-single-digit at the the low DTC to at lower

brand be our upon the based our continue execution market. in optimistic We to team's cautiously strong and strengthening perception

comes Sachs. The Brooke next from Roach with question Goldman

both and you channels, and holiday pricing into commented about overall as are to the for for optimal full store price discount how move are and brand's the the rates America plans Patrice, full we what as few the strong across promotions line beyond? a and rate season discount in overall you we momentum this times evaluate outlet sales close brand. North

first that's all, the right? quarter, And America. guess, double-click I'll contributed promotional XX%. general up has and North I and actually, past let on of me is, this stronger-than-expected trend to message So our then quarter this reduced activity, group AUR headline Globally start globally been

as So America applies of on And discount. That we're North to journey. travel an is elevation direction reduction well. of

will So our continue mix to up. AUR expectations

specific for Japan, I we'll touch we're durable a to pricing, like-for-like stay to think going bar FX I from like-for-like kind Obviously, how I stable costs pricing relatively evolve, where of in through future. we're changes. but foreseeable -- think don't stay going we're with working the think need any

on then promotional of travel say direction I'd the elevation. And front, is

pull define that as on is given environment in, is only what would -- to brand on But progress be to optimal general, years few I right? expectation had continue easy get to know, but have need we promotional past right? And our over the we back run I going Brooke,I to back because operate it's stay to plan. promotion define, quarters, get you we've pull I of know If the competitive have on game magnitude we're the now, wish X we've give good on doing how consumers flexibility nimble sharper, and dependent we how play very don't to level choices. So been the were know going is a we the promotion. to define to to answer AURs we're these continue could our past the don't I sharper but where in don't

the our -- as laser being that our focused to sure that we're this run on in our think to quarter future, with said, you plan in this value foreign low performance we But in we that we investing can excitement confidence they and drive from I the drive think engagement continue play. products target consumers and making I that see see

Paribas. question next with from Laurent Vasilescu comes BNP The

And unit mentioned the beyond? modeling positive mentioned shorter the the and XQ? digits, is X that as -- which of mid-single now applies headwinds, for to to those audience of potentially maybe Justin, does think headwinds that don't kind expectation out think headwinds be point, which year the single you tailwind a it the we you Day, full Boxing think starting are think I like low digits, I mentioned for then X Justin, out year AUR the be I AUR's at for mentioned point and think with this the to Easter. then you is that model XQ, also holiday, holiday you was up but I quick in U.S. can XQ I the those from On that velocity terms point to become that and imply just percentage what parse AURs

second the Thanks, I'll first. do Sure. Laurent. And

terms I in less of half that takes, the compressions and a second revenue. holiday for the we headwind bake have in puts guidance, and the shifts would on depression the So into say the our net than point of QX the ships

to X these flip benefit side, point our the QX ships. about On we're revenue expecting a from net

of these some half despite and trends takes. puts the really second underlying solid So still in

expect to question, AUR QX from the low growth in AUR we range. still our mid-single-digit moderation healthy On but unit growth growth levels, do that

If drove think is AUR growth. interesting we and about what's comp really QX, double-digit you double-digit

taking we're So share. share. not buying We're

about do you unit units. remain focused on to think when addition driving in And AUR. We so growth

channels, in In our think our categories, handbags, fact, categories, high-growth Europe, channels. full-price markets, that Asia, targeted think doing today Think we're think sweaters.

contract. see So as AUR like-for-like total unit growth we that gap with and growth less to growth continuing moderates, lean cooling inflation to expect pricing between AUR do we into and

from question Chris next Nardone with comes The America. Bank of

significant Can your the elaborate and to still talk back China? how region relative fiscal expand half rest there opportunity longer is in the And the with for current on the your confirm today of door if through the you China count term, initial investing guidance. whether then And your to altered could for expectations macro balancing year in you're you've you your and for outlook climate?

Yes. Obviously, Chris. days, China is on minds many these people's

in through had and in China. all, on We've feel of we first a COVID, sentiment. pressured through XX the consumer through quarters So about the uncertainty been good we've momentum row growing luxury very

And China driving is combination double-digit acquisition, So XX% long-term growth up opportunities it the what's new customer near- growth past in again, quarter. of this we and this the quarter. by are energized

growth footprint Solid meaningful a across get expansion. on now. I'll your question store to comp

looks the absolutely New start. a stores. full-price to is very We We're stunning in that Shenzhen strong store. excited opened about off just

and are right? in that We And is about Actually, how then our to do well. China. women's Polo platforms, learning learning new designer also Douyin

to As Polo work we through consumers how on women's speak with platform. showcase that the teams to Chinese best

are are X our top really nicely focus ecosystem question, for are earlier, I think, is categories city I on the brand cities Dana's quite company. consumer. on nicely. drivers these very connecting, nicely drivers Chinese the China So motoring as The product mentioned the And with durable key the in growth resonating

for is ambition unchanged. China our So

of And we -- is today, about total China X% company. the

the Polo share small much be to important. potential more Kauren still So of relatively and Ralph a

Specifically on store opening.

I A in in our guided prior in what are that really year, we how open to it ecosystem So disciplined, to and this teams stores expansion get just said are be but consistent is idea about we're number benefits, we short-term XX X of stores it's for going we're work years. with roughly those China, next actually we being for to highly -- to in very expand not Asia the the pretty the that and brand the stake which selective next but connects and years. on market doing the the build show where XX is and really appreciate up,

be significant Europe, geographic diversified that touch really with we in our in to that, very environment in along to back And In with and the continue North Western for an ambitious opportunities that have runway is volatile, obviously to in driver but stay continue us. other strategy. the much we about growth opportunities China, America

Our John comes Kernan from final with Cowen. question TD

some what Patrice, quarter. there's stores up How great comps Europe? like another stores last shoots both price you impressive? really you of put on thinking seems green top full are It's from year on perspective. Congrats in The It Europe XX%. obviously about here. factory are a up least comps your and DTC penetrated region

on very and that's ground Listen, doing So because to actually with the Europe brick-and-mortar this was performance our in DTC, DTC work actually teams our yesterday timely on I as the very leader digital talking Europe well. pleased a from we're [indiscernible]. in both are really great question on

not nicely quarters few this delivering a consistently ahead story. in a now. our Europe, So of been is We've X-quarter expectations for

exact of like, to opportunities of where right? benchmark the year what X that. one store, you we but When years are talk stores in, where between continued through already meaningfully number, To our we either only significant for opportunity expansion that where X while is more cities our don't of We have cities than footprint see think opportunities more of store your to point, we're kind presence still growth, next there's terms expanded in underpenetrated. key key in competitors, London. number next have and XX more our the phase know to next a we of an we have in the number have as looks we do and and very about are we we'll a There limited, do we store

that we opportunities where cities a cities key there the about good then don't of that number feeling remain actually And for in. are us. significant we a have we're footprint So are

track on we'll owned track we're XX full-price with Investor with stores, or between and that. said Day partnered. either XX So on our We're targets. We open

XX year We planning new in about new XX opened stores since -- We're 'XX. fiscal this year. fiscal total, stores XX

quarter the think leader past recently EMEA just past stores in what Europe. me quarter XX our opened was I we this from telling in

the out. track on plan that we're So game we've laid with

on in But the on to consumer we significant how and context up, build growth with comment where similar have we're we earlier ambitious EMEA markets. ecosystem that the grateful building But and China, cities. teams opportunity. engage going our show across the excited are to in about each of very selective the what work are being and looks outstanding the that very future for the in we're we like the doing of my for there us We what

for All We look holidays. right. earnings our joining Well, you behalf today. our holidays of Lauren, listen, Ralph, thank Until on of February. and then, on speaking the care. forward at you Take with Ralph in us Happy third early happy and here quarter team rest call to Justin

your Ladies and your participation. conference for you does for Thank gentlemen, today. that conclude

disconnect. now may You