Ralph Lauren Corporation (NYSE:RL) Q4 2019 Earnings Conference Call - Final Transcript

May 14, 2019 • 09:00 am ET


Ralph Lauren Corporation (NYSE:RL) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the Ralph Lauren Third Quarter Fiscal 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, Ms. Corinna Van Der Ghinst. Please go ahead.

Corinna Van Der Ghinst

Good morning, and thank you for joining Ralph Lauren's Fourth Quarter and Full Year Fiscal 2019 conference call. With me today are Patrice Louvet, the Company's President and Chief Executive Officer and Jane Nielsen, Chief Operating Officer and Chief Financial Officer. After prepared remarks, we will open up the call for your questions, which we ask that you limit to one per caller.

During today's call, we will be making some forward-looking statements within the meaning of the federal securities laws, including our financial outlook. Forward-looking statements are not guarantees and our actual results may differ materially from those expressed or implied in the forward-looking statements. Our expectations contain many risks and uncertainties. Principal risks and uncertainties that could cause our results to differ materially from our current expectations are detailed in our SEC filings.

To find disclosures and reconciliations of non-GAAP measures that we use when discussing our financial results, you should refer to this morning's earnings release and to our SEC filings that can be found on our Investor Relations website.

And now, I will turn the call over to Patrice.

Patrice Louvet

Thank you, Cori. Good morning, everyone, and thank you for joining today's call. We are pleased to report fourth quarter and full-year fiscal 2019 results that delivered on our commitments, with revenues, operating margin, and double-digit EPS growth all coming in ahead of our outlook for both the quarter and the year. Our fourth quarter performance was driven by double-digit revenue growth in Asia and Europe on a constant currency basis and better than expected AUR growth globally. North America also made continued progress on returning to a healthier base with ongoing elevation of our brand and the planned reduction of our off-price channel penetration, though, we recognize that we still have more work to do on this multi-year journey.

On balance, our company outperformed on core metrics this year with several areas of our business delivering ahead of expectations and a few that require more work. Moving forward, we are focused on leveraging the successes while also applying the learnings from this first year of our Next Great Chapter strategic plan. As we closed out fiscal 2019, Ralph and I are proud of the work our teams have done this year. We are encouraged by the strong progress we have made on our strategic plan to deliver long-term sustainable growth and value creation.

In a moment, Jane will take you through the fourth quarter and fiscal '20 outlook. But first, let me start by reviewing our fiscal '19 highlights across the five strategic priorities in our plan. As a reminder, these