Adjusted free cash flow productivity for the quarter was 110%; returned $3.3 billion to shareholders.
Adjusted free cash flow productivity was 87%; returned $16 billion to shareholders including $10 billion in dividends and $6.5 billion in share repurchases.
Core earnings per share for the quarter were $1.48, up 6% versus prior year; core operating margin increased 150 basis points.
Core earnings per share were $6.83, up 4% for the year; core gross margin declined 40 basis points; core operating margin increased 50 basis points.
E-commerce sales increased 12%, representing 19% of total company sales.
Enterprise Markets were up 2%, led by Latin America with 4% organic sales growth.
Fiscal '25 organic sales grew 2%, with volume growth contributing 1 point and price/mix adding 1 point.
Focus Markets grew organic sales 2% for the year; North America up 2%, Europe Focus Markets up 3%.
Fourth quarter organic sales were 2%, with volume in line with prior year and pricing and mix each up 1%.
Greater China organic sales were down 5% for the year but grew 2% sequentially in the most recent quarter.
Nearly $2.7 billion of productivity improvements enabled increased investment in products, packaging, and brand communication.
Nine of 10 product categories grew organic sales for the year; Baby Care was down low singles.
Adjusted gross margin expanded 160 basis points to 72.1%, driven by AUR growth, favorable mix shift, and lower cotton costs despite higher labor and non-cotton material costs.
Adjusted operating margin expanded 230 basis points to 16.6%, with operating profit increasing 29%, both ahead of guidance.
Net inventory increased 18% year-over-year, partly due to strategic receipt pull forwards related to tariffs.
Ralph Lauren reported strong Q1 fiscal 2026 results with total company revenue growth of 11% on a constant currency basis, exceeding high single-digit guidance.
Revenue growth was led by Asia (19%), Europe (10%), and North America (8%), with global retail comps up 13%.
The company repurchased $250 million in shares and increased its annual dividend by about 10%.
Adjusted diluted earnings per share were $0.87, a decrease of $0.11 per share versus prior year primarily due to lower operating results.
Debt was reduced by approximately $111 million in the quarter, with total debt at $4.5 billion and a leverage ratio of 2.6x EBITDA.
Effective interest rate remained at 5.2%, with approximately 75% of debt effectively fixed through interest rate swaps.
Europe segment EBITDA margin was 9.4%, a 120 basis point decrease from last year, or 50 basis points excluding a prior year nonrecurring benefit.
Free cash flow during the quarter was $243 million despite a nearly $35 million headwind from tariffs, bringing year-to-date cash flows to $186 million.
North America segment EBITDA margin was 15.8%, a 150 basis point decrease relative to last year but 10 basis points better than Q1.
Self Service segment EBITDA margin was 10%, consistent with prior year.
Specialty segment EBITDA margin was 8.5%, 40 basis points below prior year due to inflationary cost increases with largely flat organic revenue.
Total revenues for Q2 2025 were $3.6 billion, with diluted earnings per share of $0.75, a $0.05 increase compared to Q2 2024.
Adjusted EBITDA margin improved by 390 basis points year-over-year to 12.9%, with adjusted EBITDA of $19.7 million.
FIGS reported its largest revenue quarter in history with net revenues increasing 6% year-over-year to $152.6 million, surpassing expectations.
G&A expenses decreased to 22.8% of net revenues from 24.8% last year, mainly due to lower stock-based compensation despite higher people costs.
Gross margin contracted 40 basis points to 67%, impacted by higher inventory reserves and tariffs but partially offset by duty drawback and lower return rates.
Marketing expense was 15.2% of net revenues, slightly down from 15.9% last year.
Net income was $7.1 million or diluted EPS of $0.04, compared to $1.1 million or $0.01 EPS last year.
Scrubwear category grew 8%, the highest growth in the past 7 quarters, representing 83% of net revenues.
Selling expenses decreased to 22.6% of net revenues from 25.6% last year, driven by efficiencies in fulfillment and shipping.
Dafinchi
