Ralph Lauren Corporation (NYSE:RL) Q3 2024 Earnings Call Transcript

Jane Nielsen: So Rick, I think as we look at flow-through on outperformance, it’s really going to be about the cadence of our investments and continuing to stay focused on our productivity metrics. As you do look at flow-through especially on the gross margin line, DTC, while we’ve been able to, on wholesale softness lean into DTC, which is a good thing. It is our strategy. The gross margin does have to cover some of that higher level of SG&A. We’ve been able to, I think, with real agility balance that. And of course, as we look forward, we’ll look at that balance between slowing through outperformance and making investments in our business. As we have looked at where to invest in our business, we’re very encouraged by the investments that we’ve made in digital.

You know that, that’s an important part of our future, and we’re going to continue to make those investments. equally developing our ecosystem. As I said earlier, we are on track for delivering 250 new stores over the 3-year time horizon. We believe that stores are an important part of our brand presentation and our customer service experience. So you’ll see us continue to drive that. And then finally, our brand. One of the things that we are proudest of this quarter is the momentum in our brand and our underlying health with our consumer. Our NPS score was higher, our purchase intent score was higher, our value perception score was higher. And so we believe in our brands, we will always invest in it and we think it will pay dividends not only in the short-term but in the long-term.

Patrice Louvet: All right. Well, this is the end of our call. So thank you, everyone, for joining us today. We look forward to sharing our fourth quarter and year-end results with you in May. And until then, take care, and have a great day.

Operator: Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation. You may now disconnect.