Ralph Lauren Reports Fourth Quarter and Full Year Fiscal 2021 Results

Ralph Lauren Corporation (NYSE:RL), a global leader in the design, marketing, and distribution of premium lifestyle products, today reported earnings per diluted share of ($1.01) on a reported basis and $0.38 on an adjusted basis, excluding restructuring-related and other charges, for the fourth quarter of Fiscal 2021. This compared to earnings per diluted share of ($3.38) on a reported basis and ($0.68) on an adjusted basis, excluding restructuring-related and other charges, for the fourth quarter of Fiscal 2020.

For Fiscal 2021, earnings per diluted share was ($1.65) on a reported basis and $1.70 on an adjusted basis, excluding restructuring-related and other charges. This compared to earnings per diluted share of $4.98 on a reported basis and $6.56 on an adjusted basis, excluding restructuring-related and other charges, for the full year of Fiscal 2020.

The Company also announced that its Board of Directors approved to reinstate its regular quarterly cash dividend on the Company's Common Stock, previously suspended due to the COVID-19 pandemic. The quarterly cash dividend is $0.6875 per share for a total annual dividend amount of $2.75 per share. The next quarterly dividend is payable on July 9, 2021 to shareholders of record at the close of business on June 25, 2021.

"This has been a year of profound challenge and reflection – both for our company and for communities around the world. For us, it was a reminder of the importance of staying true to our core vision – anchored in the ideas of timelessness and authenticity – while embracing new ways of connecting with people," said Ralph Lauren, Executive Chairman & Chief Creative Officer. "As we begin to heal from a year marked by pain and division, we believe the kind of luxury we stand for – one that is inclusive and marked by a spirit of togetherness, optimism and love – is what people are craving."

"This fiscal year, we fundamentally repositioned our company for long-term success – accelerating our digital and marketing capabilities, eliminating structural headwinds, focusing our brand portfolio and realigning our cost structure – all while continuing our brand elevation journey around the world," said Patrice Louvet, President & Chief Executive Officer. "In the fourth quarter, our teams demonstrated incredible resilience, leading us to achieve better than expected operating results across all regions as our brand resonated with new and existing consumers. Looking ahead, even as the environment remains volatile, with the strength of our brand, our teams and operational position, we are confident in our ability to deliver sustainable long-term growth and value creation in Fiscal 2022 and beyond."

Key Achievements in Fiscal 2021

As we continued to navigate a volatile global retail environment, we delivered the following highlights across our strategic priorities in the fourth quarter and full year Fiscal 2021:

• Win Over a New Generation of Consumers
  • Accelerated marketing investments to 44% growth in the fourth quarter as we drove high-impact digital campaigns, reactivated in-person activities, and shifted spend from the first three quarters of the year due to COVID lockdowns. Highlights from the quarter included our Spring ’21 Collection digital experience featuring a livestream concert with Janelle Monáe, CLOT x Polo Ralph Lauren collaboration with Edison Chen, and debut sponsorship of the Australian Open
  • For the full year Fiscal 2021, marketing increased to 6.0% of total revenues, up from 4.5% last year, to support our brand elevation and drive consumer engagement, resulting in accelerated growth in global brand awareness and purchase intent
  • Strategically shifted investments toward innovative digital campaigns, including our Ralph Lauren x Bitmoji Collection with over 1 billion try-ons on Snapchat, virtual concert experience featuring Chance the Rapper, global Farfetch launch, and our 360º holiday campaigns emphasizing our core Ralph Lauren values
• Energize Core Products and Accelerate Under-Developed Categories
  • Average unit retail (AUR) across our direct-to-consumer network grew 30% in the fourth quarter and 26% for full year Fiscal 2021, with underlying growth of about 20% excluding unusual COVID mix impacts. All geographies exceeded our long-term targets of low- to mid-single digit annual AUR growth, led by more than 20% growth in both North America and Europe as we accelerated our brand elevation initiatives this year
  • Leveraged the breadth of our lifestyle brand to tailor our product to changing consumer preferences by region, including expanding our high-potential underdeveloped categories such as outerwear and fleece and prudently building back into new seasonal assortments as consumer demand strengthens and evolves
  • Expanded into new digital pla