QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Zip Code) | |||||||||||
(Address of principal executive offices) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | ||||||
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
PART I. FINANCIAL INFORMATION (Unaudited) | ||||||||
Item 1. | Financial Statements: | |||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
1 |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||
Accounts receivable, net of allowances of $ | ||||||||||||||
Inventories | ||||||||||||||
Income tax receivable | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Deferred tax assets | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Other non-current assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Current income tax payable | ||||||||||||||
Current operating lease liabilities | ||||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Long-term finance lease liabilities | ||||||||||||||
Long-term operating lease liabilities | ||||||||||||||
Non-current income tax payable | ||||||||||||||
Non-current liability for unrecognized tax benefits | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Commitments and contingencies (Note 12) | ||||||||||||||
Total liabilities | ||||||||||||||
Equity: | ||||||||||||||
Class A common stock, par value $ | ||||||||||||||
Class B common stock, par value $ | ||||||||||||||
Additional paid-in-capital | ||||||||||||||
Retained earnings | ||||||||||||||
Treasury stock, Class A, at cost; | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
2 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions, except per share data) | ||||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | ||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general, and administrative expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Restructuring and other charges, net | ( | ( | ( | ( | ||||||||||||||||||||||
Total other operating expenses, net | ( | ( | ( | ( | ||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Other expense, net | ( | ( | ( | ( | ||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income tax provision | ( | ( | ( | ( | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Dividends declared per share | $ | $ | $ | $ |
3 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Foreign currency translation losses | ( | ( | ( | ( | ||||||||||||||||||||||
Net gains on cash flow hedges | ||||||||||||||||||||||||||
Net losses on defined benefit plans | ( | ( | ( | |||||||||||||||||||||||
Other comprehensive loss, net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ |
4 |
Six Months Ended | ||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||
(millions) | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization expense | ||||||||||||||
Deferred income tax expense | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Bad debt expense | ||||||||||||||
Other non-cash charges | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | ( | ( | ||||||||||||
Inventories | ( | ( | ||||||||||||
Prepaid expenses and other current assets | ( | ( | ||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Income tax receivables and payables | ( | |||||||||||||
Operating lease right-of-use assets and liabilities, net | ( | ( | ||||||||||||
Other balance sheet changes | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Purchases of investments | ( | ( | ||||||||||||
Proceeds from sales and maturities of investments | ||||||||||||||
Other investing activities | ( | |||||||||||||
Net cash provided by (used in) investing activities | ( | |||||||||||||
Cash flows from financing activities: | ||||||||||||||
Repayments of long-term debt | ( | |||||||||||||
Payments of finance lease obligations | ( | ( | ||||||||||||
Payments of dividends | ( | ( | ||||||||||||
Repurchases of common stock, including shares surrendered for tax withholdings | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | ( | ( | ||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ |
5 |
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock(a) | Additional Paid-in Capital | Treasury Stock at Cost | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | AOCI(b) | ||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, including excise tax | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock-based compensation plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended October 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock(a) | Additional Paid-in Capital | Treasury Stock at Cost | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | AOCI(b) | ||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock-based compensation plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
6 |
Six Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock(a) | Additional Paid-in Capital | Treasury Stock at Cost | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | AOCI(b) | ||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, including excise tax | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock-based compensation plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended October 1, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock(a) | Additional Paid-in Capital | Treasury Stock at Cost | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | AOCI(b) | ||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock-based compensation plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
7 |
8 |
9 |
Contractually-Guaranteed Minimum Royalties(a) | ||||||||
(millions) | ||||||||
Remainder of Fiscal 2024 | $ | |||||||
Fiscal 2025 | ||||||||
Fiscal 2026 | ||||||||
Fiscal 2027 | ||||||||
Fiscal 2028 | ||||||||
Fiscal 2029 and thereafter | ||||||||
Total | $ |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America | Europe | Asia | Other | Total | North America | Europe | Asia | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Channel(a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Wholesale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Licensing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
10 |
Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America | Europe | Asia | Other | Total | North America | Europe | Asia | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Channel(a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Wholesale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Licensing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Shipping costs | $ | $ | $ | $ | ||||||||||||||||||||||
Handling costs |
11 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Basic shares | ||||||||||||||||||||||||||
Dilutive effect of RSUs | ||||||||||||||||||||||||||
Diluted shares |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Beginning reserve balance | $ | $ | $ | $ | ||||||||||||||||||||||
Amount charged against revenue to increase reserve | ||||||||||||||||||||||||||
Amount credited against customer accounts to decrease reserve | ( | ( | ( | ( | ||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ( | ||||||||||||||||||||||
Ending reserve balance | $ | $ | $ | $ |
12 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Beginning reserve balance | $ | $ | $ | $ | ||||||||||||||||||||||
Amount recorded to expense to increase reserve(a) | ||||||||||||||||||||||||||
Amount written-off against customer accounts to decrease reserve | ( | ( | ( | |||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ( | ||||||||||||||||||||||
Ending reserve balance | $ | $ | $ | $ |
13 |
14 |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Land and improvements | $ | $ | ||||||||||||
Buildings and improvements | ||||||||||||||
Furniture and fixtures | ||||||||||||||
Machinery and equipment | ||||||||||||||
Capitalized software | ||||||||||||||
Leasehold improvements | ||||||||||||||
Construction in progress | ||||||||||||||
Less: accumulated depreciation | ( | ( | ||||||||||||
Property and equipment, net | $ | $ |
15 |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Other taxes receivable | $ | $ | ||||||||||||
Non-trade receivables | ||||||||||||||
Prepaid software maintenance | ||||||||||||||
Prepaid advertising and marketing | ||||||||||||||
Derivative financial instruments | ||||||||||||||
Inventory return asset | ||||||||||||||
Prepaid occupancy expense | ||||||||||||||
Prepaid insurance | ||||||||||||||
Cloud computing arrangement implementation costs | ||||||||||||||
Prepaid logistic services | ||||||||||||||
Tenant allowances receivable | ||||||||||||||
Other prepaid expenses and current assets | ||||||||||||||
Total prepaid expenses and other current assets | $ | $ |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Derivative financial instruments | $ | $ | ||||||||||||
Security deposits | ||||||||||||||
Cloud computing arrangement implementation costs | ||||||||||||||
Equity method and other investments | ||||||||||||||
Deferred rent assets | ||||||||||||||
Restricted cash | ||||||||||||||
Other non-current assets | ||||||||||||||
Total other non-current assets | $ | $ |
16 |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Accrued inventory | $ | $ | ||||||||||||
Accrued operating expenses | ||||||||||||||
Accrued payroll and benefits | ||||||||||||||
Other taxes payable | ||||||||||||||
Dividends payable | ||||||||||||||
Restructuring reserve | ||||||||||||||
Accrued capital expenditures | ||||||||||||||
Finance lease obligations | ||||||||||||||
Deferred income | ||||||||||||||
Other accrued expenses and current liabilities | ||||||||||||||
Total accrued expenses and other current liabilities | $ | $ |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Deferred lease incentives and obligations | $ | $ | ||||||||||||
Deferred tax liabilities | ||||||||||||||
Accrued benefits and deferred compensation | ||||||||||||||
Restructuring reserve | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Total other non-current liabilities | $ | $ |
17 |
18 |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
$400 million 3.750% Senior Notes(a) | $ | $ | ||||||||||||
$750 million 2.950% Senior Notes(b) | ||||||||||||||
Total long-term debt | $ | $ |
19 |
20 |
21 |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Derivative assets(a) | $ | $ | ||||||||||||
Derivative liabilities(a) |
September 30, 2023 | April 1, 2023 | |||||||||||||||||||||||||
Carrying Value(a) | Fair Value(b) | Carrying Value(a) | Fair Value(b) | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
$400 million 3.750% Senior Notes | $ | $ | $ | $ | ||||||||||||||||||||||
$750 million 2.950% Senior Notes |
22 |
Notional Amounts | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument(a) | September 30, 2023 | April 1, 2023 | September 30, 2023 | April 1, 2023 | September 30, 2023 | April 1, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Line(b) | Fair Value | Balance Sheet Line(b) | Fair Value | Balance Sheet Line(b) | Fair Value | Balance Sheet Line(b) | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Designated Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FC — Cash flow hedges | $ | $ | PP | $ | PP | $ | $ | AE | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges(c) | ONCA | ONCA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Designated Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FC — Undesignated hedges(d) | PP | PP | AE | AE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Hedges | $ | $ | $ | $ | $ | $ |
23 |
September 30, 2023 | April 1, 2023 | |||||||||||||||||||||||||||||||||||||
Gross Amounts Presented in the Balance Sheet | Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements | Net Amount | Gross Amounts Presented in the Balance Sheet | Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements | Net Amount | |||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||
Derivative assets | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Derivative liabilities | ( | ( |
Gains (Losses) Recognized in OCI | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Designated Hedges: | ||||||||||||||||||||||||||
FC — Cash flow hedges | $ | $ | $ | $ | ||||||||||||||||||||||
Net investment hedges — effective portion | ||||||||||||||||||||||||||
Net investment hedges — portion excluded from assessment of hedge effectiveness | ( | ( | ( | |||||||||||||||||||||||
Total Designated Hedges | $ | $ | $ | $ |
Location and Amount of Gains (Losses) from Cash Flow Hedges Reclassified from AOCI to Earnings | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
Cost of goods sold | Cost of goods sold | Cost of goods sold | Cost of goods sold | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Total amounts presented in the consolidated statements of operations in which the effects of related cash flow hedges are recorded | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Effects of cash flow hedging: | ||||||||||||||||||||||||||
FC — Cash flow hedges |
24 |
Gains (Losses) from Net Investment Hedges Recognized in Earnings | Location of Gains (Losses) Recognized in Earnings | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||
Net Investment Hedges: | ||||||||||||||||||||||||||||||||
Net investment hedges — portion excluded from assessment of hedge effectiveness(a) | $ | $ | $ | $ | Interest expense | |||||||||||||||||||||||||||
Total Net Investment Hedges | $ | $ | $ | $ |
Gains (Losses) Recognized in Earnings | Location of Gains (Losses) Recognized in Earnings | |||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||
Undesignated Hedges: | ||||||||||||||||||||||||||||||||
FC — Undesignated hedges | $ | $ | $ | $ | Other income (expense), net | |||||||||||||||||||||||||||
Total Undesignated Hedges | $ | $ | $ | $ |
25 |
Six Months Ended | ||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||
(millions) | ||||||||||||||
Cost of shares repurchased(a) | $ | $ | ||||||||||||
Number of shares repurchased |
26 |
Foreign Currency Translation Gains (Losses)(a) | Net Unrealized Gains (Losses) on Cash Flow Hedges(b) | Net Unrealized Gains (Losses) on Defined Benefit Plans(c) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
OCI before reclassifications | ( | ( | ( | |||||||||||||||||||||||
Amounts reclassified from AOCI to earnings | ( | ( | ( | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Balance at April 2, 2022 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
OCI before reclassifications | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from AOCI to earnings | ( | ( | ( | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||||||||||||||
Balance at October 1, 2022 | $ | ( | $ | $ | $ | ( |
27 |
Three Months Ended | Six Months Ended | Location of Gains (Losses) Reclassified from AOCI to Earnings | ||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||
Gains (losses) on cash flow hedges(a): | ||||||||||||||||||||||||||||||||
FC — Cash flow hedges | $ | $ | $ | $ | Cost of goods sold | |||||||||||||||||||||||||||
Tax effect | ( | ( | ( | ( | Income tax provision | |||||||||||||||||||||||||||
Net of tax | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Compensation expense | $ | $ | $ | $ | ||||||||||||||||||||||
Income tax benefit | ( | ( | ( | ( |
28 |
Number of Service-based RSUs | ||||||||
(thousands) | ||||||||
Unvested at April 1, 2023 | ||||||||
Granted | ||||||||
Vested | ( | |||||||
Forfeited | ( | |||||||
Unvested at September 30, 2023 |
Six Months Ended | ||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||
Expected volatility | % | % | ||||||||||||
Expected dividend yield | % | % | ||||||||||||
Risk-free interest rate | % | % |
Number of Performance-based RSUs | ||||||||
(thousands) | ||||||||
Unvested at April 1, 2023 | ||||||||
Granted | ||||||||
Change due to performance and/or market condition achievement | ||||||||
Vested | ||||||||
Forfeited | ( | |||||||
Unvested at September 30, 2023 |
29 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||
North America | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||
Other non-reportable segments | ||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ |
30 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Operating income: | ||||||||||||||||||||||||||
North America | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||
Other non-reportable segments | ||||||||||||||||||||||||||
Unallocated corporate expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Unallocated restructuring and other charges, net(a) | ( | ( | ( | ( | ||||||||||||||||||||||
Total operating income | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||
Unallocated restructuring and other charges, net: | |||||||||||||||||||||||||||||
North America-related | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||
Europe-related | ( | ||||||||||||||||||||||||||||
Asia-related | ( | ( | |||||||||||||||||||||||||||
Corporate operations-related | ( | ( | ( | ( | |||||||||||||||||||||||||
Unallocated restructuring charges | ( | ( | ( | ( | |||||||||||||||||||||||||
Other charges (see Note 7) | ( | ( | ( | ( | |||||||||||||||||||||||||
Total unallocated restructuring and other charges, net | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Depreciation and amortization expense: | ||||||||||||||||||||||||||
North America | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||||
Unallocated corporate | ||||||||||||||||||||||||||
Total depreciation and amortization expense | $ | $ | $ | $ |
31 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Net revenues(a): | ||||||||||||||||||||||||||
The Americas(b) | $ | $ | $ | $ | ||||||||||||||||||||||
Europe(c) | ||||||||||||||||||||||||||
Asia(d) | ||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ |
September 30, 2023 | April 1, 2023 | |||||||||||||
(millions) | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash included within prepaid expenses and other current assets | ||||||||||||||
Restricted cash included within other non-current assets | ||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ |
Six Months Ended | ||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||
(millions) | ||||||||||||||
Cash paid for interest | $ | $ | ||||||||||||
Cash paid for income taxes, net of refunds |
32 |
Six Months Ended | ||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||
(millions) | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows for operating leases | $ | $ | ||||||||||||
Operating cash flows for finance leases | ||||||||||||||
Financing cash flows for finance leases |
33 |
34 |
35 |
36 |
37 |
38 |
39 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||
Restructuring and other charges, net (see Note 7) | $ | (9.3) | $ | (6.9) | $ | (44.9) | $ | (12.5) | ||||||||||||||||||
Non-routine inventory benefits (charges)(a) | 1.8 | 2.4 | 3.6 | (9.2) | ||||||||||||||||||||||
Impairment of assets(b) | — | (0.2) | — | (0.2) | ||||||||||||||||||||||
Non-routine bad debt expense reversals(c) | 0.3 | — | 0.4 | 2.4 | ||||||||||||||||||||||
Total charges | $ | (7.2) | $ | (4.7) | $ | (40.9) | $ | (19.5) |
40 |
41 |
Three Months Ended | ||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | % / bps Change | |||||||||||||||||||||||
(millions, except per share data) | ||||||||||||||||||||||||||
Net revenues | $ | 1,633.0 | $ | 1,579.9 | $ | 53.1 | 3.4 | % | ||||||||||||||||||
Cost of goods sold | (562.9) | (556.8) | (6.1) | 1.1 | % | |||||||||||||||||||||
Gross profit | 1,070.1 | 1,023.1 | 47.0 | 4.6 | % | |||||||||||||||||||||
Gross profit as % of net revenues | 65.5 | % | 64.8 | % | 70 bps | |||||||||||||||||||||
Selling, general, and administrative expenses | (896.3) | (809.5) | (86.8) | 10.7 | % | |||||||||||||||||||||
SG&A expenses as % of net revenues | 54.9 | % | 51.2 | % | 370 bps | |||||||||||||||||||||
Restructuring and other charges, net | (9.3) | (6.9) | (2.4) | 34.3 | % | |||||||||||||||||||||
Operating income | 164.5 | 206.7 | (42.2) | (20.4 | %) | |||||||||||||||||||||
Operating income as % of net revenues | 10.1 | % | 13.1 | % | (300 bps) | |||||||||||||||||||||
Interest expense | (10.0) | (9.5) | (0.5) | 5.0 | % | |||||||||||||||||||||
Interest income | 15.8 | 6.6 | 9.2 | 138.8 | % | |||||||||||||||||||||
Other expense, net | (4.8) | (3.7) | (1.1) | 30.7 | % | |||||||||||||||||||||
Income before income taxes | 165.5 | 200.1 | (34.6) | (17.3 | %) | |||||||||||||||||||||
Income tax provision | (18.6) | (49.6) | 31.0 | (62.5 | %) | |||||||||||||||||||||
Effective tax rate(a) | 11.2 | % | 24.8 | % | (1,360 bps) | |||||||||||||||||||||
Net income | $ | 146.9 | $ | 150.5 | $ | (3.6) | (2.4 | %) | ||||||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||
Basic | $ | 2.24 | $ | 2.21 | $ | 0.03 | 1.4 | % | ||||||||||||||||||
Diluted | $ | 2.19 | $ | 2.18 | $ | 0.01 | 0.5 | % |
% Change | ||||||||
Digital commerce | 8 | % | ||||||
Brick and mortar | 5 | % | ||||||
Total comparable store sales | 6 | % |
42 |
September 30, 2023 | October 1, 2022 | |||||||||||||
Freestanding Stores: | ||||||||||||||
North America | 236 | 239 | ||||||||||||
Europe | 104 | 98 | ||||||||||||
Asia | 224 | 197 | ||||||||||||
Total freestanding stores | 564 | 534 | ||||||||||||
Concession Shops: | ||||||||||||||
North America | 1 | 1 | ||||||||||||
Europe | 27 | 29 | ||||||||||||
Asia | 682 | 682 | ||||||||||||
Total concession shops | 710 | 712 | ||||||||||||
Total stores | 1,274 | 1,246 |
Three Months Ended | $ Change | Foreign Exchange Impact | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | As Reported | Constant Currency | As Reported | Constant Currency | |||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||
Net Revenues: | ||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 717.8 | $ | 726.6 | $ | (8.8) | $ | (0.9) | $ | (7.9) | (1.2 | %) | (1.1 | %) | ||||||||||||||||||||||||||||||
Europe | 526.8 | 493.5 | 33.3 | 35.9 | (2.6) | 6.8 | % | (0.5 | %) | |||||||||||||||||||||||||||||||||||
Asia | 348.4 | 316.4 | 32.0 | (7.9) | 39.9 | 10.1 | % | 12.6 | % | |||||||||||||||||||||||||||||||||||
Other non-reportable segments | 40.0 | 43.4 | (3.4) | — | (3.4) | (7.9 | %) | (7.9 | %) | |||||||||||||||||||||||||||||||||||
Total net revenues | $ | 1,633.0 | $ | 1,579.9 | $ | 53.1 | $ | 27.1 | $ | 26.0 | 3.4 | % | 1.7 | % |
43 |
% Change | ||||||||
Digital commerce | 4 | % | ||||||
Brick and mortar | 4 | % | ||||||
Total comparable store sales | 4 | % |
% Change | ||||||||
Digital commerce | 14 | % | ||||||
Brick and mortar | 5 | % | ||||||
Total comparable store sales | 6 | % |
% Change | ||||||||
Digital commerce | 19 | % | ||||||
Brick and mortar | 7 | % | ||||||
Total comparable store sales | 8 | % |
44 |
Three Months Ended September 30, 2023 Compared to Three Months Ended October 1, 2022 | ||||||||
(millions) | ||||||||
SG&A expense category: | ||||||||
Compensation-related expenses | $ | 33.7 | ||||||
Marketing and advertising expenses | 25.1 | |||||||
Rent and occupancy expenses | 8.5 | |||||||
Depreciation and amortization expense | 5.3 | |||||||
Selling-related expenses | 4.5 | |||||||
Other | 9.7 | |||||||
Total increase in SG&A expenses | $ | 86.8 |
45 |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | $ Change | Margin Change | |||||||||||||||||||||||||||||||||
(millions) | (millions) | (millions) | ||||||||||||||||||||||||||||||||||||
Segment: | ||||||||||||||||||||||||||||||||||||||
North America | $ | 110.2 | 15.4% | $ | 127.1 | 17.5% | $ | (16.9) | (210 bps) | |||||||||||||||||||||||||||||
Europe | 132.4 | 25.1% | 134.6 | 27.3% | (2.2) | (220 bps) | ||||||||||||||||||||||||||||||||
Asia | 68.4 | 19.6% | 65.7 | 20.8% | 2.7 | (120 bps) | ||||||||||||||||||||||||||||||||
Other non-reportable segments | 34.1 | 85.2% | 40.0 | 92.3% | (5.9) | (710 bps) | ||||||||||||||||||||||||||||||||
345.1 | 367.4 | (22.3) | ||||||||||||||||||||||||||||||||||||
Unallocated corporate expenses | (171.3) | (153.8) | (17.5) | |||||||||||||||||||||||||||||||||||
Unallocated restructuring and other charges, net | (9.3) | (6.9) | (2.4) | |||||||||||||||||||||||||||||||||||
Total operating income | $ | 164.5 | 10.1% | $ | 206.7 | 13.1% | $ | (42.2) | (300 bps) |
46 |
47 |
Six Months Ended | ||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | % / bps Change | |||||||||||||||||||||||
(millions, except per share data) | ||||||||||||||||||||||||||
Net revenues | $ | 3,129.5 | $ | 3,070.5 | $ | 59.0 | 1.9 | % | ||||||||||||||||||
Cost of goods sold | (1,027.4) | (1,046.0) | 18.6 | (1.8 | %) | |||||||||||||||||||||
Gross profit | 2,102.1 | 2,024.5 | 77.6 | 3.8 | % | |||||||||||||||||||||
Gross profit as % of net revenues | 67.2 | % | 65.9 | % | 130 bps | |||||||||||||||||||||
Selling, general, and administrative expenses | (1,726.3) | (1,630.1) | (96.2) | 5.9 | % | |||||||||||||||||||||
SG&A expenses as % of net revenues | 55.2 | % | 53.1 | % | 210 bps | |||||||||||||||||||||
Restructuring and other charges, net | (44.9) | (12.5) | (32.4) | 258.4 | % | |||||||||||||||||||||
Operating income | 330.9 | 381.9 | (51.0) | (13.4 | %) | |||||||||||||||||||||
Operating income as % of net revenues | 10.6 | % | 12.4 | % | (180 bps) | |||||||||||||||||||||
Interest expense | (20.0) | (21.3) | 1.3 | (6.1 | %) | |||||||||||||||||||||
Interest income | 31.5 | 10.2 | 21.3 | 208.7 | % | |||||||||||||||||||||
Other expense, net | (6.3) | (8.5) | 2.2 | (26.5 | %) | |||||||||||||||||||||
Income before income taxes | 336.1 | 362.3 | (26.2) | (7.2 | %) | |||||||||||||||||||||
Income tax provision | (57.1) | (88.4) | 31.3 | (35.4 | %) | |||||||||||||||||||||
Effective tax rate(a) | 17.0 | % | 24.4 | % | (740 bps) | |||||||||||||||||||||
Net income | $ | 279.0 | $ | 273.9 | $ | 5.1 | 1.9 | % | ||||||||||||||||||
Net income per common share: | ||||||||||||||||||||||||||
Basic | $ | 4.24 | $ | 3.97 | $ | 0.27 | 6.8 | % | ||||||||||||||||||
Diluted | $ | 4.15 | $ | 3.90 | $ | 0.25 | 6.4 | % |
% Change | ||||||||
Digital commerce | 3 | % | ||||||
Brick and mortar | 4 | % | ||||||
Total comparable store sales | 4 | % |
48 |
Six Months Ended | $ Change | Foreign Exchange Impact | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | As Reported | Constant Currency | As Reported | Constant Currency | |||||||||||||||||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||||||||||||||||||||||
Net Revenues: | ||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 1,349.5 | $ | 1,427.3 | $ | (77.8) | $ | (2.5) | $ | (75.3) | (5.4 | %) | (5.3 | %) | ||||||||||||||||||||||||||||||
Europe | 977.3 | 909.1 | 68.2 | 41.3 | 26.9 | 7.5 | % | 3.0 | % | |||||||||||||||||||||||||||||||||||
Asia | 725.9 | 650.5 | 75.4 | (23.5) | 98.9 | 11.6 | % | 15.2 | % | |||||||||||||||||||||||||||||||||||
Other non-reportable segments | 76.8 | 83.6 | (6.8) | — | (6.8) | (8.2 | %) | (8.2 | %) | |||||||||||||||||||||||||||||||||||
Total net revenues | $ | 3,129.5 | $ | 3,070.5 | $ | 59.0 | $ | 15.3 | $ | 43.7 | 1.9 | % | 1.4 | % |
% Change | ||||||||
Digital commerce | (2 | %) | ||||||
Brick and mortar | (1 | %) | ||||||
Total comparable store sales | (1 | %) |
% Change | ||||||||
Digital commerce | 11 | % | ||||||
Brick and mortar | 3 | % | ||||||
Total comparable store sales | 4 | % |
49 |
% Change | ||||||||
Digital commerce | 15 | % | ||||||
Brick and mortar | 10 | % | ||||||
Total comparable store sales | 11 | % |
Six Months Ended September 30, 2023 Compared to Six Months Ended October 1, 2022 | ||||||||
(millions) | ||||||||
SG&A expense category: | ||||||||
Compensation-related expenses | $ | 57.4 | ||||||
Rent and occupancy costs | 16.5 | |||||||
Depreciation and amortization expense | 8.4 | |||||||
Shipping and handling costs | 5.1 | |||||||
Marketing and advertising expenses | 4.2 | |||||||
Selling-related expenses | 3.0 | |||||||
Other | 1.6 | |||||||
Total net increase in SG&A expenses | $ | 96.2 |
50 |
Six Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||||||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | $ Change | Margin Change | |||||||||||||||||||||||||||||||||
(millions) | (millions) | (millions) | ||||||||||||||||||||||||||||||||||||
Segment: | ||||||||||||||||||||||||||||||||||||||
North America | $ | 235.5 | 17.4% | $ | 259.9 | 18.2% | $ | (24.4) | (80 bps) | |||||||||||||||||||||||||||||
Europe | 229.6 | 23.5% | 207.8 | 22.9% | 21.8 | 60 bps | ||||||||||||||||||||||||||||||||
Asia | 161.7 | 22.3% | 144.4 | 22.2% | 17.3 | 10 bps | ||||||||||||||||||||||||||||||||
Other non-reportable segments | 67.9 | 88.4% | 77.2 | 92.3% | (9.3) | (390 bps) | ||||||||||||||||||||||||||||||||
694.7 | 689.3 | 5.4 | ||||||||||||||||||||||||||||||||||||
Unallocated corporate expenses | (318.9) | (294.9) | (24.0) | |||||||||||||||||||||||||||||||||||
Unallocated restructuring and other charges, net | (44.9) | (12.5) | (32.4) | |||||||||||||||||||||||||||||||||||
Total operating income | $ | 330.9 | 10.6% | $ | 381.9 | 12.4% | $ | (51.0) | (180 bps) |
51 |
52 |
September 30, 2023 | April 1, 2023 | $ Change | ||||||||||||||||||
(millions) | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,381.8 | $ | 1,529.3 | $ | (147.5) | ||||||||||||||
Short-term investments | 85.1 | 36.4 | 48.7 | |||||||||||||||||
Long-term debt(a) | (1,139.5) | (1,138.5) | (1.0) | |||||||||||||||||
Net cash and short-term investments | $ | 327.4 | $ | 427.2 | $ | (99.8) | ||||||||||||||
Equity | $ | 2,369.2 | $ | 2,430.5 | $ | (61.3) |
Six Months Ended | ||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | ||||||||||||||||||
(millions) | ||||||||||||||||||||
Net cash provided by operating activities | $ | 343.6 | $ | 1.9 | $ | 341.7 | ||||||||||||||
Net cash provided by (used in) investing activities | (132.9) | 328.1 | (461.0) | |||||||||||||||||
Net cash used in financing activities | (335.1) | (1,027.2) | 692.1 | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (23.9) | (60.6) | 36.7 | |||||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | $ | (148.3) | $ | (757.8) | $ | 609.5 |
53 |
54 |
September 30, 2023 | ||||||||||||||||||||
Description(a) | Total Availability | Borrowings Outstanding | Remaining Availability | |||||||||||||||||
(millions) | ||||||||||||||||||||
Global Credit Facility and Commercial Paper Program(b) | $ | 750 | $ | 12 | (c) | $ | 738 | |||||||||||||
Pan-Asia Credit Facilities | 35 | — | 35 | |||||||||||||||||
Japan Overdraft Facility | 34 | — | 34 |
55 |
56 |
57 |
58 |
59 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs(a) | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||
July 2, 2023 to July 29, 2023 | — | $ | — | — | $ | 1,125 | |||||||||||||||||
July 30, 2023 to August 26, 2023 | 987,776 | (b) | 120.07 | 624,435 | 1,050 | ||||||||||||||||||
August 27, 2023 to September 30, 2023 | 439,007 | (c) | 114.57 | 436,402 | 1,000 | ||||||||||||||||||
1,426,783 | 1,060,837 |
60 |
3.1 | |||||
3.2 | |||||
3.3 | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH* | XBRL Taxonomy Extension Schema Document | ||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. | ||||
61 |
RALPH LAUREN CORPORATION | ||||||||
By: | /S/ JANE HAMILTON NIELSEN | |||||||
Jane Hamilton Nielsen | ||||||||
Chief Operating Officer and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) | ||||||||
Date: November 8, 2023 |
62 |
/s/ PATRICE LOUVET | |||||
Patrice Louvet | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
Date: November 8, 2023 |
/s/ JANE HAMILTON NIELSEN | |||||
Jane Hamilton Nielsen | |||||
Chief Operating Officer and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) | |||||
Date: November 8, 2023 |
/s/ PATRICE LOUVET | |||||
Patrice Louvet | |||||
Date: November 8, 2023 |
/s/ JANE HAMILTON NIELSEN | |||||
Jane Hamilton Nielsen | |||||
Date: November 8, 2023 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Allowance on accounts receivable | $ 173.0 | $ 175.3 |
Class A common stock, par value $.01 per share; 108.7 million and 107.7 million shares issued; 39.8 million and 40.7 million shares outstanding | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 108.7 | 107.7 |
Common stock, shares outstanding | 39.8 | 40.7 |
Treasury Stock, Common, Shares | 68.9 | 67.0 |
Class B common stock, par value $.01 per share; 24.9 million shares issued and outstanding | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 24.9 | 24.9 |
Common stock, shares outstanding | 24.9 | 24.9 |
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Income Statement [Abstract] | ||||
Net revenues | $ 1,633.0 | $ 1,579.9 | $ 3,129.5 | $ 3,070.5 |
Cost of goods sold | (562.9) | (556.8) | (1,027.4) | (1,046.0) |
Gross profit | 1,070.1 | 1,023.1 | 2,102.1 | 2,024.5 |
Other costs and expenses | ||||
Selling, general, and administrative expenses | (896.3) | (809.5) | (1,726.3) | (1,630.1) |
Unallocated restructuring and other charges, net | (9.3) | (6.9) | (44.9) | (12.5) |
Total other operating expenses, net | (905.6) | (816.4) | (1,771.2) | (1,642.6) |
Operating income | 164.5 | 206.7 | 330.9 | 381.9 |
Interest expense | (10.0) | (9.5) | (20.0) | (21.3) |
Interest income | 15.8 | 6.6 | 31.5 | 10.2 |
Other expense, net | (4.8) | (3.7) | (6.3) | (8.5) |
Income before income taxes | 165.5 | 200.1 | 336.1 | 362.3 |
Income tax provision | (18.6) | (49.6) | (57.1) | (88.4) |
Net income | $ 146.9 | $ 150.5 | $ 279.0 | $ 273.9 |
Net income per common share: | ||||
Basic | $ 2.24 | $ 2.21 | $ 4.24 | $ 3.97 |
Diluted | $ 2.19 | $ 2.18 | $ 4.15 | $ 3.90 |
Weighted average common shares outstanding: | ||||
Basic | 65.6 | 68.0 | 65.7 | 69.0 |
Diluted | 67.2 | 69.0 | 67.3 | 70.3 |
Dividends declared per share | $ 0.75 | $ 0.75 | $ 1.50 | $ 1.50 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 146.9 | $ 150.5 | $ 279.0 | $ 273.9 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Foreign currency translation losses | (38.1) | (56.5) | (75.6) | (95.8) |
Net gains on cash flow hedges | 8.2 | 7.3 | 9.0 | 18.9 |
Net losses on defined benefit plans | (0.1) | 0.0 | (0.2) | (0.1) |
Other comprehensive loss, net of tax | (30.0) | (49.2) | (66.8) | (77.0) |
Total comprehensive income | $ 116.9 | $ 101.3 | $ 212.2 | $ 196.9 |
Description of Business |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Description of Business [Abstract] | |
Description of Business | Description of Business Ralph Lauren Corporation ("RLC") is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear & accessories, home, fragrances, and hospitality. RLC's long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. RLC's brand names include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. RLC and its subsidiaries are collectively referred to herein as the "Company," "we," "us," "our," and "ourselves," unless the context indicates otherwise. The Company diversifies its business by geography (North America, Europe, and Asia, among other regions) and channel of distribution (retail, wholesale, and licensing). This allows the Company to maintain a dynamic balance as its operating results do not depend solely on the performance of any single geographic area or channel of distribution. The Company sells directly to consumers through its integrated retail channel, which includes its retail stores, concession-based shop-within-shops, and digital commerce operations around the world. The Company's wholesale sales are made principally to major department stores, specialty stores, and third-party digital partners around the world, as well as to certain third-party-owned stores to which the Company has licensed the right to operate in defined geographic territories using its trademarks. In addition, the Company licenses to third parties for specified periods the right to access its various trademarks in connection with the licensees' manufacture and sale of designated products, such as certain apparel, eyewear, fragrances, and home. The Company organizes its business into the following three reportable segments: North America, Europe, and Asia. In addition to these reportable segments, the Company also has other non-reportable segments. See Note 16 for further discussion of the Company's segment reporting structure.
|
Basis of Presentation |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Interim Financial Statements These interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") and are unaudited. In the opinion of management, these consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company for the interim periods presented. In addition, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and the notes thereto have been condensed or omitted from this report as is permitted by the SEC's rules and regulations. However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading. This report should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC for the fiscal year ended April 1, 2023 (the "Fiscal 2023 10-K"). Basis of Consolidation These unaudited interim consolidated financial statements present the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
|
Basis of Presentation (cont.) | Fiscal Periods The Company utilizes a 52-53 week fiscal year ending on the Saturday immediately before or after March 31. As such, fiscal year 2024 will end on March 30, 2024 and will be a 52-week period ("Fiscal 2024"). Fiscal year 2023 ended on April 1, 2023 and was also a 52-week period ("Fiscal 2023"). The second quarter of Fiscal 2024 ended on September 30, 2023 and was a 13-week period. The second quarter of Fiscal 2023 ended on October 1, 2022 and was also a 13-week period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include reserves for bad debt, customer returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; fair value measurements; accounting for income taxes and related uncertain tax positions; valuation of stock-based compensation awards and related forfeiture rates; and reserves for restructuring activity, among others. Reclassifications Certain reclassifications have been made to the prior periods' financial information in order to conform to the current period's presentation. Seasonality of Business The Company's business is typically affected by seasonal trends, with higher levels of retail sales in its second and third fiscal quarters and higher wholesale sales in its second and fourth fiscal quarters. These trends result primarily from the timing of key vacation travel, back-to-school, and holiday shopping periods impacting its retail business and the timing of seasonal wholesale shipments. As a result of changes in its business, consumer spending patterns, and the macroeconomic environment, including those resulting from pandemic diseases and other catastrophic events, historical quarterly operating trends and working capital requirements may not be indicative of the Company's future performance. In addition, fluctuations in sales, operating income (loss), and cash flows in any fiscal quarter may be affected by other events affecting retail sales, such as changes in weather patterns. Accordingly, the Company's operating results and cash flows for the three-month and six-month periods ended September 30, 2023 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2024.
|
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition The Company recognizes revenue across all channels of the business when it satisfies its performance obligations by transferring control of promised products or services to its customers, which occurs either at a point in time or over time, depending on when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services. The amount of revenue recognized considers terms of sale that create variability in the amount of consideration that the Company ultimately expects to be entitled to in exchange for the products or services, and is subject to an overall constraint that a significant revenue reversal will not occur in future periods. Sales and other related taxes collected from customers and remitted to government authorities are excluded from revenue. Revenue from the Company's retail business is recognized when the customer takes physical possession of the products, which occurs either at the point of sale for merchandise purchased at the Company's own retail stores and shop-within-shop locations, or upon receipt of shipment for merchandise ordered through direct-to-consumer digital commerce sites. Such revenues are recorded net of estimated returns based on historical trends. Payment is due at the point of sale. Gift cards purchased by customers are recorded as a liability until they are redeemed for products sold by the Company's retail business, at which point revenue is recognized. The Company also estimates and recognizes revenue for gift card balances not expected to ever be redeemed (referred to as "breakage") to the extent that it does not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdiction as unclaimed or abandoned property. Such estimates are based upon historical redemption trends, with breakage income recognized in proportion to the pattern of actual customer redemptions. Revenue from the Company's wholesale business is generally recognized upon shipment of products, at which point title passes and risk of loss is transferred to the customer. In certain arrangements where the Company retains the risk of loss during shipment, revenue is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results. Revenue from the Company's licensing arrangements is recognized over time during the period that licensees are provided access to the Company's trademarks (i.e., symbolic intellectual property) and benefit from such access through their own sales of licensed products. These arrangements require licensees to pay a sales-based royalty, which for most arrangements, may be subject to a contractually-guaranteed minimum royalty amount. Payments are generally due quarterly and, depending on time of receipt, may be recorded as a liability until recognized as revenue. The Company recognizes revenue for sales-based royalty arrangements (including those for which the royalty exceeds any contractually-guaranteed minimum royalty amount) as licensed products are sold by the licensee. If a sales-based royalty is not ultimately expected to exceed a contractually-guaranteed minimum royalty amount, the minimum is generally recognized as revenue ratably over the respective contractual period. This sales-based output measure of progress and pattern of recognition best represents the value transferred to the licensee over the term of the arrangement, as well as the amount of consideration that the Company is entitled to receive in exchange for providing access to its trademarks. As of September 30, 2023, contractually-guaranteed minimum royalty amounts expected to be recognized as revenue during future periods were as follows:
(a)Amounts presented do not contemplate potential contract renewals or royalties earned in excess of the contractually-guaranteed minimums. Disaggregated Net Revenues The following tables disaggregate the Company's net revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors for the fiscal periods presented:
(a)Net revenues from the Company's retail and wholesale businesses are recognized at a point in time. Net revenues from the Company's licensing business are recognized over time. Deferred Income Deferred income represents cash payments received in advance of the Company's transfer of control of products or services to its customers and generally consists of unredeemed gift cards (net of breakage) and advance royalty payments from its licensees. The Company's deferred income balances were $15.1 million and $14.1 million as of September 30, 2023 and April 1, 2023, respectively, and were primarily recorded within accrued expenses and other current liabilities within the consolidated balance sheets. The majority of the deferred income balance as of September 30, 2023 is expected to be recognized as revenue within the next twelve months. Shipping and Handling Costs Costs associated with shipping goods to customers are accounted for as fulfillment activities and reflected as selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Costs of preparing merchandise for sale, such as picking, packing, warehousing, and order charges ("handling costs"), are also included in SG&A expenses. Shipping and handling costs billed to customers are included in revenue. A summary of shipping and handling costs for the fiscal periods presented is as follows:
Net Income per Common Share Basic net income per common share is computed by dividing net income attributable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company's Class A and Class B common stock. Diluted net income per common share adjusts basic net income per common share for the dilutive effects of outstanding restricted stock units ("RSUs") and any other potentially dilutive instruments, only for the periods in which such effects are dilutive. The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to shares used to calculate diluted net income per common share as follows:
All earnings per share amounts have been calculated using unrounded numbers. The Company has outstanding performance-based RSUs, which are included in the computation of diluted shares only to the extent that the underlying performance conditions (i) have been satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. As of September 30, 2023 and October 1, 2022, there were 0.3 million and 0.4 million, respectively, of additional shares issuable contingent upon vesting of performance-based RSUs that were excluded from the diluted shares calculations. Accounts Receivable In the normal course of business, the Company extends credit to wholesale customers that satisfy certain defined credit criteria. Payment is generally due within 30 to 120 days and does not involve a significant financing component. Accounts receivable are recorded at amortized cost, which approximates fair value, and are presented in the consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see the "Revenue Recognition" section above for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. A rollforward of the activity in the Company's reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented as follows:
An allowance for doubtful accounts is determined through analysis of accounts receivable aging, assessments of collectability based on evaluation of historical trends, the financial condition of the Company's customers and their ability to withstand prolonged periods of adverse economic conditions, and evaluation of the impact of current and forecasted economic and market conditions over the related asset's contractual life, among other factors. A rollforward of the activity in the Company's allowance for doubtful accounts is presented as follows:
(a)Amounts recorded to bad debt expense are included within SG&A expenses in the consolidated statements of operations. Concentration of Credit Risk The Company sells its wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners around the world, and extends credit based on an evaluation of each customer's financial capacity and condition, usually without requiring collateral. In the Company's wholesale business, concentration of credit risk is relatively limited due to the large number of customers and their dispersion across many geographic areas. However, the Company has three key wholesale customers that generate significant sales volume. During Fiscal 2023, the Company's sales to its three largest wholesale customers accounted for approximately 16% of total net revenues. Substantially all of the Company's sales to its three largest wholesale customers related to its North America segment. As of September 30, 2023, these three key wholesale customers accounted for approximately 31% of total gross accounts receivable. Inventories The Company holds inventory that is sold in its retail stores and digital commerce sites directly to consumers. The Company also holds inventory that is to be sold through wholesale distribution channels to major department stores, specialty stores, and third-party digital partners. Substantially all of the Company's inventories consist of finished goods, which are stated at the lower of cost or estimated realizable value, with cost determined on a weighted-average cost basis. Inventory held by the Company totaled $1.195 billion, $1.071 billion, and $1.261 billion as of September 30, 2023, April 1, 2023, and October 1, 2022, respectively. Supplier Finance Program The Company supports a voluntary supplier finance program which provides certain of its inventory suppliers the opportunity, at their sole discretion, to sell their receivables due from the Company (which are generally due within 90 days) to a participating financial institution in exchange for receipt of a discounted payment amount made earlier than the payment term stipulated between the Company and the supplier. The Company's vendor payment terms and amounts due are not impacted by a supplier's decision to participate in the program. The Company has not pledged any assets and does not provide guarantees under the supplier finance program. The Company's payment obligations outstanding under its supplier finance program were $177.5 million and $122.2 million as of September 30, 2023 and April 1, 2023, respectively, and were recorded within accounts payable in the consolidated balance sheets. Derivative Financial Instruments The Company records derivative financial instruments on its consolidated balance sheets at fair value. Changes in the fair value of derivative instruments that are designated and qualify for hedge accounting are either (i) offset through earnings against the changes in fair value of the related hedged assets, liabilities, or firm commitments or (ii) recognized in equity as a component of accumulated other comprehensive income (loss) ("AOCI") until the hedged item is recognized in earnings, depending on whether the instrument is hedging against changes in fair value or cash flows and net investments, respectively. Each derivative instrument that qualifies for hedge accounting is expected to be highly effective in offsetting the risk associated with the related exposure. For each instrument that is designated as a hedge, the Company documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item, and the risk exposure, as well as how hedge effectiveness will be assessed over the instrument's term. To assess hedge effectiveness at the inception of a hedging relationship, the Company generally uses regression analysis, a statistical method, to evaluate how changes in the fair value of the derivative instrument are expected to offset changes in the fair value or cash flows of the related hedged item. The extent to which a hedging instrument has been and is expected to remain highly effective in achieving offsetting changes in fair value or cash flows is assessed by the Company on at least a quarterly basis. Given its use of derivative instruments, the Company is exposed to the risk that counterparties to such contracts will fail to meet their contractual obligations. To mitigate such counterparty credit risk, the Company's policy is to only enter into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings and certain other factors, adhering to established limits for credit exposure. The Company's established policies and procedures for mitigating credit risk include ongoing review and assessment of its counterparties' creditworthiness. The Company also enters into master netting arrangements with counterparties, when possible, to further mitigate credit risk. In the event of default or termination, these arrangements allow the Company to net-settle amounts payable and receivable related to multiple derivative transactions with the same counterparty. The master netting arrangements specify a number of events of default and termination, including the failure to make timely payments. The fair values of the Company's derivative instruments are recorded on its consolidated balance sheets on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities for its forward foreign exchange contracts and within cash flows from investing activities for its cross-currency swap contracts, both as discussed below. Cash Flow Hedges The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency. To the extent designated as cash flow hedges, related gains or losses on such instruments are initially deferred in equity as a component of AOCI and are subsequently recognized within cost of goods sold in the consolidated statements of operations when the related inventory is sold. If a derivative instrument is dedesignated or if hedge accounting is discontinued because the instrument is not expected to be highly effective in hedging the designated exposure, any further gains (losses) are recognized in earnings each period within other income (expense), net. Upon discontinuance of hedge accounting, the cumulative change in fair value of the derivative instrument recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the hedging strategy, unless the related forecasted transaction is probable of not occurring, in which case the accumulated amount is immediately recognized within other income (expense), net. Hedges of Net Investments in Foreign Operations The Company periodically uses cross-currency swap contracts to reduce risk associated with exchange rate fluctuations on certain of its net investments in foreign subsidiaries. Changes in the fair values of such derivative instruments that are designated as hedges of net investments in foreign operations are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments. In assessing the effectiveness of such hedges, the Company uses a method based on changes in spot rates to measure the impact of foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related hedging instrument. Under this method, changes in the fair value of the hedging instrument other than those due to changes in the spot rate are initially recorded in AOCI as a translation adjustment and are amortized into earnings as interest expense using a systematic and rational method over the instrument's term. Changes in fair value associated with the effective portion (i.e., those due to changes in the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment. Undesignated Hedges The Company uses undesignated hedges primarily to hedge foreign currency exchange rate risk related to third-party and intercompany balances and exposures. Changes in the fair values of such instruments are recognized in earnings each period within other income (expense), net. See Note 11 for further discussion of the Company's derivative financial instruments. Refer to Note 3 of the Fiscal 2023 10-K for a summary of all of the Company's significant accounting policies.
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Recently Issued Accounting Standards |
6 Months Ended |
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Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Disclosure of Supplier Finance Program Obligations In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, "Disclosure of Supplier Finance Program Obligations" ("ASU 2022-04"). ASU 2022-04 requires entities to disclose the key terms of supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period and an annual rollforward of such obligations. This standard does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. ASU 2022-04 is effective for the Company beginning in its Fiscal 2024 and is to be applied retrospectively to all periods in which a balance sheet is presented. The annual rollforward disclosure is not required to be made until the Company's fiscal year ending March 29, 2025 ("Fiscal 2025") and is to be applied prospectively. The Company adopted ASU 2022-04 as of the beginning of Fiscal 2024. Other than the new disclosure requirements, ASU 2022-04 did not have an impact on the Company's consolidated financial statements. See Note 3 for further discussion of the Company's supplier finance program.
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment, net consists of the following:
Property and equipment, net includes finance lease right-of-use ("ROU") assets, which are reflected in the table above based on their nature. Depreciation expense was $55.2 million and $110.1 million during the three-month and six-month periods ended September 30, 2023, respectively, and $49.6 million and $101.0 million during the three-month and six-month periods ended October 1, 2022, respectively, and was recorded primarily within SG&A expenses in the consolidated statements of operations.
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Other Assets and Liabilities |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Liabilities | Other Assets and Liabilities Prepaid expenses and other current assets consist of the following:
Other non-current assets consist of the following:
Accrued expenses and other current liabilities consist of the following:
Other non-current liabilities consist of the following:
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Restructuring and Other Charges |
6 Months Ended |
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Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges, Net A description of significant restructuring and other activities and their related costs is provided below. Fiscal 2024 Restructuring Activities During the three-month and six-month periods ended September 30, 2023, the Company recorded $6.8 million and $37.3 million, respectively, of cash-related restructuring charges, primarily associated with severance and benefit costs. As of September 30, 2023, the remaining restructuring liability related to these charges was $30.5 million, reflecting cash payments of $6.8 million made during the six months ended September 30, 2023. Fiscal 2023 Restructuring Activities The Company recorded total restructuring charges of $4.9 million and $5.6 million during the three-month and six-month periods ended October 1, 2022, respectively, related to its restructuring plan initiated during its fiscal year ended March 27, 2021 (the "Fiscal 2021 Strategic Realignment Plan"). Total restructuring charges included cash-related charges of $1.4 million and $2.1 million during the three-month and six-month periods ended October 1, 2022, respectively, and non-cash charges of $3.5 million during both the three-month and six-month periods ended October 1, 2022. In addition to these charges, the Company recognized $2.0 million and $3.5 million of income within restructuring and other charges, net in the consolidated statements of operations during the second quarters of Fiscal 2024 and Fiscal 2023, respectively, related to consideration received from Regent, L.P. in connection with the Company's previously sold Club Monaco business. Actions associated with the Fiscal 2021 Strategic Realignment Plan are complete and no additional charges are expected to be incurred in connection with this plan. As of September 30, 2023 and April 1, 2023, the remaining restructuring liability related to this plan was $11.5 million and $20.7 million, respectively, reflecting $8.9 million of cash payments and $0.3 million of non-cash adjustments made during the six months ended September 30, 2023. Refer to Note 9 of the Fiscal 2023 10-K for additional discussion regarding the Fiscal 2021 Strategic Realignment Plan. Other Charges The Company recorded other charges of $4.5 million and $9.6 million during the three-month and six-month periods ended September 30, 2023, respectively, and $5.7 million and $10.6 million during the three-month and six-month periods ended October 1, 2022, respectively, primarily related to rent and occupancy costs associated with certain previously exited real estate locations for which the related lease agreements have not yet expired.
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Income Taxes |
6 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Inflation Reduction Act of 2022 On August 16, 2022, President Biden signed the Inflation Reduction Act ("IRA") into law. The IRA enacted a 15% corporate minimum tax rate (subject to certain thresholds being met) that became effective for the Company beginning in its Fiscal 2024, a 1% excise tax on share repurchases made after December 31, 2022 (which may be reduced for the fair value of certain share issuances), and created and extended certain tax-related energy incentives. The tax-related provisions of the IRA have not had a material impact on the Company's consolidated financial statements to date, but could in the future if the Company's facts and circumstances were to change. See Note 13 for additional information relating to the Company's stock repurchase program. Effective Tax Rate The Company's effective tax rate, which is calculated by dividing each fiscal period's income tax provision by pretax income, was 11.2% and 17.0% during the three-month and six-month periods ended September 30, 2023, respectively, and 24.8% and 24.4% during the three-month and six-month periods ended October 1, 2022, respectively. The effective tax rates for the three-month and six-month periods ended September 30, 2023 were lower than the U.S. federal statutory income tax rate of 21% primarily due to favorable adjustments related to the revaluation of deferred tax assets arising from Swiss tax reform and favorable deferred tax adjustments related to the European Union's anti-tax avoidance directive. The lower effective tax rates were also driven by favorable remeasurements of net deferred tax assets as a result of recently enacted changes in tax legislation. The effective tax rates for the three-month and six-month periods ended October 1, 2022 were higher than the U.S. federal statutory income tax rate of 21% primarily due to state taxes and the unfavorable impact of certain audit related adjustments, partially offset by the favorable tax impact of earnings generated in lower taxed foreign jurisdictions versus the U.S. Uncertain Income Tax Benefits The Company classifies interest and penalties related to unrecognized tax benefits as part of its income tax provision. The total amount of unrecognized tax benefits, including interest and penalties, was $100.7 million and $93.8 million as of September 30, 2023 and April 1, 2023, respectively, and was included within the non-current liability for unrecognized tax benefits in the consolidated balance sheets. The total amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate was $63.1 million and $59.6 million as of September 30, 2023 and April 1, 2023, respectively. Future Changes in Unrecognized Tax Benefits The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, the Company does not anticipate that the balance of gross unrecognized tax benefits, excluding interest and penalties, will change significantly during the next twelve months. However, changes in the occurrence, expected outcomes, and timing of such events could cause the Company's current estimate to change materially in the future. The Company files a consolidated U.S. federal income tax return, as well as tax returns in various state, local, and foreign jurisdictions. The Company is generally no longer subject to examinations by the relevant tax authorities for years prior to its fiscal year ended March 30, 2013.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consists of the following:
(a)The carrying value of the 3.750% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $1.3 million and $1.6 million as of September 30, 2023 and April 1, 2023, respectively. (b)The carrying value of the 2.950% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $9.2 million and $9.9 million as of September 30, 2023 and April 1, 2023, respectively. Senior Notes In August 2018, the Company completed a registered public debt offering and issued $400 million aggregate principal amount of unsecured senior notes due September 15, 2025, which bear interest at a fixed rate of 3.750%, payable semi-annually (the "3.750% Senior Notes"). The 3.750% Senior Notes were issued at a price equal to 99.521% of their principal amount. The proceeds from this offering were used for general corporate purposes, including repayment of the Company's previously outstanding $300 million principal amount of 2.125% unsecured senior notes that matured September 26, 2018. In June 2020, the Company completed another registered public debt offering and issued an additional $500 million aggregate principal amount of unsecured senior notes that were due and repaid on June 15, 2022 with cash on hand, which bore interest at a fixed rate of 1.700%, payable semi-annually (the "1.700% Senior Notes"), and $750 million aggregate principal amount of unsecured senior notes due June 15, 2030, which bear interest at a fixed rate of 2.950%, payable semi-annually (the "2.950% Senior Notes"). The 1.700% Senior Notes and 2.950% Senior Notes were issued at prices equal to 99.880% and 98.995% of their principal amounts, respectively. The proceeds from these offerings were used for general corporate purposes, which included the repayment of $475 million previously outstanding under the Company's Global Credit Facility (as defined below) on June 3, 2020 and repayment of its previously outstanding $300 million principal amount of 2.625% unsecured senior notes that matured August 18, 2020. The Company has the option to redeem the 3.750% Senior Notes and 2.950% Senior Notes (collectively, the "Senior Notes"), in whole or in part, at any time at a price equal to accrued and unpaid interest on the redemption date plus the greater of (i) 100% of the principal amount of the series of Senior Notes to be redeemed or (ii) the sum of the present value of Remaining Scheduled Payments, as defined in the supplemental indentures governing such Senior Notes (together with the indenture governing the Senior Notes, the "Indenture"). The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions; consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants. Commercial Paper The Company has a commercial paper borrowing program that allows it to issue up to $750 million of unsecured commercial paper notes through private placement using third-party broker-dealers (the "Commercial Paper Program"). Borrowings under the Commercial Paper Program are supported by the Global Credit Facility (as defined below). Accordingly, the Company does not expect combined borrowings outstanding under the Commercial Paper Program and Global Credit Facility to exceed $750 million. Commercial Paper Program borrowings may be used to support the Company's general working capital and corporate needs. Maturities of commercial paper notes vary, but cannot exceed 397 days from the date of issuance. Commercial paper notes issued under the Commercial Paper Program rank equally in seniority with the Company's other forms of unsecured indebtedness. As of both September 30, 2023 and April 1, 2023, there were no borrowings outstanding under the Commercial Paper Program. Revolving Credit Facilities Global Credit Facility In June 2023, the Company terminated its then existing credit facility and entered into a new credit facility that provides for a $750 million senior unsecured revolving line of credit through June 30, 2028 (the "Global Credit Facility") under terms and conditions substantially similar to those of the previous facility. The Global Credit Facility may be used for working capital needs, capital expenditures, certain investments, general corporate purposes, and for funding of acquisitions. The Global Credit Facility may also be used to support the issuance of letters of credit and maintenance of the Commercial Paper Program. Borrowings under the Global Credit Facility may be denominated in U.S. Dollars and certain other currencies, including Euros, Hong Kong Dollars, and Japanese Yen, and are guaranteed by some of the Company's domestic subsidiaries, including all of the Company's significant subsidiaries. In accordance with the terms of the agreement governing the Global Credit Facility, the Company has the ability to expand its borrowing availability under the Global Credit Facility to $1.500 billion, subject to the agreement of one or more new or existing lenders under the facility to increase their commitments. There are no mandatory reductions in borrowing ability throughout the term of the Global Credit Facility. Borrowings under the Global Credit Facility bear interest at a rate per annum equal to, at the Company's option, either (a) an alternate base rate or (b) an adjusted term Secured Overnight Financing Rate ("SOFR") rate or the applicable currency in which the loans are made (the "Term Benchmark Rate") plus an applicable margin. The applicable margin for Term Benchmark Rate loans will be adjusted by reference to a grid (the "Pricing Grid"), which is included in the definition of "Applicable Rate" within the Global Credit Facility agreement and is based on ratings for the Company's senior, unsecured long-term indebtedness provided by established ratings agencies. In addition to paying interest on any outstanding borrowings under the Global Credit Facility, the Company is required to pay a commitment fee, calculated at a rate per annum determined in accordance with the Pricing Grid, on the average daily unused amount of the Facility, payable quarterly in arrears, and certain fees with respect to Letters of Credit that are issued. The current commitment fee rate of 8 basis points is subject to adjustment based on the Company's credit ratings. As of September 30, 2023, there were no borrowings outstanding under the Global Credit Facility, nor were there any borrowings outstanding as of April 1, 2023 under the Company's previous facility. However, the Company was contingently liable for $11.8 million and $11.9 million of outstanding letters of credit as of September 30, 2023 and April 1, 2023, respectively. The Global Credit Facility contains a number of covenants that, among other things, restrict the Company's ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in businesses that are not in a related line of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make certain investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the "leverage ratio") of no greater than 4.25 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding, including finance lease obligations, plus all operating lease obligations. Consolidated EBITDAR is defined generally as consolidated net income plus (i) income tax expense, (ii) net interest expense, (iii) depreciation and amortization expense, (iv) operating lease cost, (v) restructuring and other non-recurring expenses, and (vi) acquisition-related costs. Upon the occurrence of an Event of Default under the Global Credit Facility, the lenders may cease making loans, terminate the Global Credit Facility, and declare all amounts outstanding to be immediately due and payable. The Global Credit Facility specifies various events of default (many of which are subject to applicable grace periods), including, among others, the failure to make timely principal, interest, and fee payments or to satisfy the covenants, including the financial covenant described above. Additionally, the Global Credit Facility provides that an Event of Default will occur if Mr. Ralph Lauren, the Company's Executive Chairman and Chief Creative Officer, and entities controlled by the Lauren family fail to maintain a specified minimum percentage of the voting power of the Company's common stock. As of September 30, 2023, no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Company's Global Credit Facility. Pan-Asia Borrowing Facilities Certain of the Company's subsidiaries in Asia have uncommitted credit facilities with regional branches of JPMorgan Chase in China and South Korea (the "Pan-Asia Credit Facilities"). Additionally, the Company's Japan subsidiary has an uncommitted overdraft facility with Sumitomo Mitsui Banking Corporation (the "Japan Overdraft Facility"). The Pan-Asia Credit Facilities and Japan Overdraft Facility (collectively, the "Pan-Asia Borrowing Facilities") are subject to annual renewal and may be used to fund general working capital needs of the Company's operations in the respective countries. Borrowings under the Pan-Asia Borrowing Facilities are guaranteed by the parent company and are granted at the sole discretion of the respective banks, subject to availability of the banks' funds and satisfaction of certain regulatory requirements. The Pan-Asia Borrowing Facilities do not contain any financial covenants. A summary of the Company's Pan-Asia Borrowing Facilities by country is as follows: •China Credit Facility — provides Ralph Lauren Trading (Shanghai) Co., Ltd. with a revolving line of credit of up to 100 million Chinese Renminbi (approximately $13 million) through April 3, 2024, which is also able to be used to support bank guarantees. •South Korea Credit Facility — provides Ralph Lauren (Korea) Ltd. with a revolving line of credit of up to 30 billion South Korean Won (approximately $22 million) through October 25, 2024. •Japan Overdraft Facility — provides Ralph Lauren Corporation Japan with an overdraft amount of up to 5 billion Japanese Yen (approximately $34 million) through April 30, 2024. As of both September 30, 2023 and April 1, 2023, there were no borrowings outstanding under the Pan-Asia Borrowing Facilities. Refer to Note 11 of the Fiscal 2023 10-K for additional discussion of the terms and conditions of the Company's debt and credit facilities.
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements U.S. GAAP prescribes a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: •Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable. •Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement. The following table summarizes the Company's financial assets and liabilities that are measured and recorded at fair value on a recurring basis, excluding accrued interest components:
(a)Based on Level 2 measurements. The Company's derivative financial instruments are recorded at fair value in its consolidated balance sheets and are valued using pricing models that are primarily based on market observable external inputs, including spot and forward currency exchange rates, benchmark interest rates, and discount rates consistent with the instrument's tenor, and consider the impact of the Company's own credit risk, if any. Changes in counterparty credit risk are also considered in the valuation of derivative financial instruments. To the extent the Company invests in commercial paper, such investments are classified as available-for-sale and recorded at fair value in its consolidated balance sheets using external pricing data, based on interest rates and credit ratings for similar issuances with the same remaining term as the Company's investments. To the extent the Company invests in bonds, such investments are also classified as available-for-sale and recorded at fair value in its consolidated balance sheets based on quoted prices in active markets. The Company's cash and cash equivalents, restricted cash, and time deposits are recorded at carrying value, which generally approximates fair value based on Level 1 measurements. The Company's debt instruments are recorded at their amortized cost in its consolidated balance sheets, which may differ from their respective fair values. The fair values of the Company's senior notes are estimated based on external pricing data, including available quoted market prices, and with reference to comparable debt instruments with similar interest rates, credit ratings, and trading frequency, among other factors. The fair values of the Company's commercial paper notes and borrowings outstanding under its credit facilities, if any, are estimated using external pricing data, based on interest rates and credit ratings for similar issuances with the same remaining term as the Company's outstanding borrowings. Due to their short-term nature, the fair values of the Company's commercial paper notes and borrowings outstanding under its credit facilities, if any, generally approximate their amortized cost carrying values. The following table summarizes the carrying values and the estimated fair values of the Company's debt instruments:
(a)See Note 9 for discussion of the carrying values of the Company's senior notes. (b)Based on Level 2 measurements. Unrealized gains or losses resulting from changes in the fair value of the Company's debt instruments do not result in the realization or expenditure of cash unless the debt is retired prior to its maturity. Non-financial Assets and Liabilities The Company's non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment, and lease-related ROU assets, are not required to be measured at fair value on a recurring basis, and instead are reported at their amortized or depreciated cost in its consolidated balance sheet. However, on a periodic basis or whenever events or changes in circumstances indicate that they may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), the respective carrying value of non-financial assets are assessed for impairment and, if ultimately considered impaired, are adjusted and written down to their fair value, as estimated based on consideration of external market participant assumptions and discounted cash flows. During both the three-month and six-month periods ended October 1, 2022, the Company recorded impairment charges of $0.2 million within SG&A expenses in the consolidated statements of operations to reduce the carrying values of certain property and equipment, net to their estimated fair values of zero. The fair values of these assets were determined based on Level 3 measurements, the related inputs of which included estimates of the amount and timing of the assets' net future discounted cash flows, based on historical experience and consideration of current trends, market conditions, and comparable sales, as applicable. No impairment charges were recorded during the three-month and six-month periods ended September 30, 2023. No impairment charges associated with goodwill or other intangible assets were recorded during either of the six-month periods ended September 30, 2023 or October 1, 2022. The Company performed its annual assessment of the recoverability of goodwill assigned to its reporting units using a quantitative approach as of the beginning of the second quarter of Fiscal 2024. The estimated fair values of the Company's reporting units were determined with the assistance of an independent third-party valuation firm using discounted cash flows and market comparisons. Based on the results of the quantitative impairment assessment, the Company concluded that the fair values of its reporting units significantly exceeded their respective carrying values and were not at risk of impairment. Accordingly, no goodwill impairment charges were recorded.
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Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments Derivative Financial Instruments The Company is exposed to changes in foreign currency exchange rates, primarily relating to certain anticipated cash flows and the value of the reported net assets of its international operations, as well as changes in the fair value of its fixed-rate debt obligations attributed to changes in benchmark interest rates. Accordingly, based on its assessment thereof, the Company may use derivative financial instruments to manage and mitigate such risks. The Company does not use derivatives for speculative or trading purposes. The following table summarizes the Company's outstanding derivative instruments recorded on its consolidated balance sheets as of September 30, 2023 and April 1, 2023:
(a)FC = Forward foreign currency exchange contracts. (b)PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCA = Other non-current assets. (c)Includes cross-currency swaps designated as hedges of the Company's net investment in certain foreign operations. (d)Relates to third-party and intercompany foreign currency-denominated exposures and balances. The Company presents the fair values of its derivative assets and liabilities recorded on its consolidated balance sheets on a gross basis, even when they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its derivative instruments on a net basis in accordance with the terms of each of its master netting arrangements, spread across eight separate counterparties, the amounts presented in the consolidated balance sheets as of September 30, 2023 and April 1, 2023 would be adjusted from the current gross presentation as detailed in the following table:
The Company's master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. See Note 3 for further discussion of the Company's master netting arrangements. The following tables summarize the pretax impact of gains and losses from the Company's designated derivative instruments on its consolidated financial statements for the three-month and six-month periods ended September 30, 2023 and October 1, 2022:
(a)Amounts recognized in other comprehensive income (loss) ("OCI") relating to the effective portion of the Company's net investment hedges would be recognized in earnings only upon the sale or liquidation of the hedged net investment. As of September 30, 2023, it is estimated that $14.5 million of pretax net gains on both outstanding and matured derivative instruments designated and qualifying as cash flow hedges deferred in AOCI will be recognized in earnings over the next twelve months. Amounts ultimately recognized in earnings will depend on exchange rates in effect when outstanding derivative instruments are settled. The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its consolidated financial statements for the three-month and six-month periods ended September 30, 2023 and October 1, 2022:
Risk Management Strategies Forward Foreign Currency Exchange Contracts The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency, the settlement of foreign currency-denominated balances, and the translation of certain foreign operations' net assets into U.S. Dollars. As part of its overall strategy for managing the level of exposure to such exchange rate risk, relating primarily to the Euro, the Japanese Yen, the South Korean Won, the Australian Dollar, the Canadian Dollar, the British Pound Sterling, the Swiss Franc, and the Chinese Renminbi, the Company generally hedges a portion of its related exposures anticipated over the next twelve months using forward foreign currency exchange contracts with maturities of two months to one year to provide continuing coverage over the period of the respective exposure. Cross-Currency Swap Contracts The Company periodically designates pay-fixed rate, receive fixed-rate cross-currency swap contracts as hedges of its net investment in certain of its European subsidiaries. These contracts swap U.S. Dollar-denominated fixed interest rate payments based on the contract's notional amount and the fixed rate of interest payable on certain of the Company's senior notes for Euro-denominated fixed interest rate payments, thereby economically converting a portion of its fixed-rate U.S. Dollar-denominated senior note obligations to fixed-rate Euro-denominated obligations. See Note 3 for further discussion of the Company's accounting policies relating to its derivative financial instruments. Investments The Company's short-term investments as of September 30, 2023 and April 1, 2023 were $85.1 million and $36.4 million, respectively, and consisted of time deposits. No significant realized or unrealized gains or losses on available-for-sale investments or impairment charges were recorded during any of the fiscal periods presented. Refer to Note 3 of the Fiscal 2023 10-K for further discussion of the Company's accounting policies relating to its investments.
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Commitments and Contingencies |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is involved, from time to time, in litigation, other legal claims, and proceedings involving matters associated with or incidental to its business, including, among other things, matters involving credit card fraud, trademark and other intellectual property, licensing, importation and exportation of its products, taxation, unclaimed property, leases, and employee relations. The Company believes at present that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on its consolidated financial statements. However, the Company's assessment of any current litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact which are not in accord with management's evaluation of the possible liability or outcome of such litigation or claims.In the normal course of business, the Company may enter into certain guarantees or other agreements that provide general indemnifications. The Company has not made any significant indemnification payments under such agreements in the past and does not currently anticipate incurring any material indemnification payments. |
Equity |
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Equity | Equity Common Stock Repurchase Program A summary of the Company's repurchases of Class A common stock under its common stock repurchase program is as follows:
(a)Excludes excise tax of $1.0 million incurred during the six months ended September 30, 2023. See Note 8 for further discussion regarding excise tax on share repurchases made after December 31, 2022. On February 2, 2022, the Company's Board of Directors approved an expansion of the Company's existing common stock repurchase program that allows it to repurchase up to an additional $1.500 billion of its Class A common stock, excluding related excise taxes. As of September 30, 2023, the remaining availability under the Company's Class A common stock repurchase program was approximately $1.000 billion. Repurchases of shares of the Company's Class A common stock are subject to overall business and market conditions. In addition, during the six-month periods ended September 30, 2023 and October 1, 2022, 0.4 million and 0.3 million shares of the Company's Class A common stock, at a cost of $50.7 million and $33.4 million, respectively, were surrendered to or withheld by the Company in satisfaction of withholding taxes in connection with the vesting of awards under its long-term stock incentive plans. Repurchased and surrendered shares are accounted for as treasury stock at cost and held in treasury for future use. Dividends The Company has generally maintained a regular quarterly cash dividend program on its common stock since 2003. On May 18, 2022, the Company's Board of Directors approved an increase to the Company's quarterly cash dividend on its common stock from $0.6875 to $0.75 per share. The second quarter Fiscal 2024 dividend of $0.75 per share was declared on September 15, 2023, was payable to shareholders of record at the close of business on September 29, 2023, and was paid on October 13, 2023. The Company intends to continue to pay regular dividends on outstanding shares of its common stock. However, any decision to declare and pay dividends in the future will ultimately be made at the discretion of the Company's Board of Directors and will depend on the Company's results of operations, cash requirements, financial condition, and other factors that the Board of Directors may deem relevant, including economic and market conditions.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents OCI activity, net of tax, accumulated in equity:
(a)OCI before reclassifications to earnings related to foreign currency translation gains (losses) includes income tax provisions of $2.9 million and $30.1 million for the six-month periods ended September 30, 2023 and October 1, 2022, respectively. OCI before reclassifications to earnings for the six-month periods ended September 30, 2023 and October 1, 2022 includes losses of $0.8 million (net of a $0.3 million income tax benefit) and gains of $66.0 million (net of a $21.1 million income tax provision), respectively, related to changes in the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations (see Note 11). (b)OCI before reclassifications to earnings related to net unrealized gains (losses) on cash flow hedges are presented net of income tax provisions of $2.3 million and $3.9 million for the six-month periods ended September 30, 2023 and October 1, 2022, respectively. The tax effects on amounts reclassified from AOCI to earnings are presented in a table below. (c)Activity is presented net of taxes, which were immaterial for both periods presented. The following table presents reclassifications from AOCI to earnings for cash flow hedges, by component:
(a)FC = Forward foreign currency exchange contracts.
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Stock-based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation The Company's stock-based compensation awards are currently issued under the 2019 Incentive Plan, which was approved by its stockholders on August 1, 2019. However, any prior awards granted under either the Company's 2010 Incentive Plan or 1997 Incentive Plan remain subject to the terms of those plans, as applicable. Any awards that expire, are forfeited, or are surrendered to the Company in satisfaction of taxes are available for issuance under the 2019 Incentive Plan. Refer to Note 18 of the Fiscal 2023 10-K for a detailed description of the Company's stock-based compensation awards, including information related to vesting terms, service, performance, and market conditions and payout percentages. Impact on Results A summary of total stock-based compensation expense and the related income tax benefits recognized during the three-month and six-month periods ended September 30, 2023 and October 1, 2022 is as follows:
The Company issues its annual grants of stock-based compensation awards in the first half of each fiscal year. Due to the timing of the annual grants and other factors, including the timing and magnitude of forfeiture and performance goal achievement adjustments, as well as changes to the size and composition of the eligible employee population, stock-based compensation expense recognized during any given fiscal period is not indicative of the level of compensation expense expected to be incurred in future periods. Service-based RSUs The fair values of service-based RSUs granted to certain of the Company's senior executives and other employees, as well as non-employee directors, are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue to the holder while outstanding and unvested. The weighted-average grant date fair values of service-based RSU awards granted were $114.69 and $92.07 per share during the six-month periods ended September 30, 2023 and October 1, 2022, respectively. A summary of service-based RSU activity during the six months ended September 30, 2023 is as follows:
Performance-based RSUs The fair values of the Company's performance-based RSUs granted to its senior executives and other key employees are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue to the holder while outstanding and unvested. The weighted-average grant date fair values of performance-based RSU awards granted were $114.86 and $92.45 per share during the six-month periods ended September 30, 2023 and October 1, 2022, respectively. Market-based RSUs The Company grants market-based RSUs, which are based on total shareholder return ("TSR") performance, to its senior executives and other key employees. The Company estimates the fair value of its TSR awards on the date of grant using a Monte Carlo simulation, which models multiple stock price paths of the Company's Class A common stock and that of its peer group to evaluate and determine its ultimate expected relative TSR performance ranking. Compensation expense, net of estimated forfeitures, is recorded regardless of whether, and the extent to which, the market condition is ultimately satisfied. The weighted-average grant date fair values of market-based RSUs granted were $147.19 and $124.62 per share during the six-month periods ended September 30, 2023 and October 1, 2022, respectively. The assumptions used to estimate the fair value of TSR awards granted during the six-month periods ended September 30, 2023 and October 1, 2022 were as follows:
A summary of performance-based RSU activity including TSR awards during the six months ended September 30, 2023 is as follows:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company has three reportable segments based on its business activities and organization: •North America — The North America segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses primarily in the U.S. and Canada. In North America, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, and its digital commerce site, www.RalphLauren.com. The Company's wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores. •Europe — The Europe segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Europe and emerging markets. In Europe, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. The Company's wholesale business in Europe is comprised primarily of a varying mix of sales to both department stores and specialty stores, depending on the country, as well as to various third-party digital partners. •Asia — The Asia segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Asia, Australia, and New Zealand. The Company's retail business in Asia is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. In addition, the Company sells its products online through various third-party digital partner commerce sites. The Company's wholesale business in Asia is comprised primarily of sales to department stores, with related products distributed through shop-within-shops. No operating segments were aggregated to form the Company's reportable segments. In addition to these reportable segments, the Company also has other non-reportable segments, which primarily consist of Ralph Lauren and Chaps branded royalty revenues earned through its global licensing alliances. The Company's segment reporting structure is consistent with how it establishes its overall business strategy, allocates resources, and assesses performance of its business. The accounting policies of the Company's segments are consistent with those described in Notes 2 and 3 of the Fiscal 2023 10-K. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Each segment's performance is evaluated based upon net revenues and operating income before restructuring-related charges, impairment of assets, and certain other one-time items, if any. Certain corporate overhead expenses related to global functions, most notably the Company's executive office, information technology, finance and accounting, human resources, and legal departments, largely remain at corporate. Additionally, other costs that cannot be allocated to the segments based on specific usage are also maintained at corporate, including corporate advertising and marketing expenses, depreciation and amortization of corporate assets, and other general and administrative expenses resulting from corporate-level activities and projects. Net revenues for each of the Company's segments are as follows:
Operating income for each of the Company's segments is as follows:
(a)The three-month and six-month periods ended September 30, 2023 and October 1, 2022 included certain unallocated restructuring and other charges, net (see Note 7), which are detailed below:
Depreciation and amortization expense for the Company's segments is as follows:
Net revenues by geographic location of the reporting subsidiary are as follows:
(a)Net revenues for certain of the Company's licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license. (b)Includes the U.S., Canada, and Latin America. Net revenues earned in the U.S. during the three-month and six-month periods ended September 30, 2023 were $726.7 million and $1.370 billion, respectively, and $737.3 million and $1.449 billion during the three-month and six-month periods ended October 1, 2022, respectively. (c)Includes the Middle East. (d)Includes Australia and New Zealand.
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Additional Financial Information |
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Supplemental Cash Flow Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Financial Information | Additional Financial Information Reconciliation of Cash, Cash Equivalents, and Restricted Cash A reconciliation of cash, cash equivalents, and restricted cash as of September 30, 2023 and April 1, 2023 from the consolidated balance sheets to the consolidated statements of cash flows is as follows:
Restricted cash relates to cash held in escrow with certain banks as collateral, primarily to secure guarantees in connection with certain international tax matters and real estate leases. Cash Paid for Interest and Taxes Cash paid for interest and income taxes is as follows:
Cash Paid for Leases The following table summarizes certain cash flow information related to the Company's leases:
Non-cash Transactions Operating lease ROU assets recorded in connection with the recognition of new lease liabilities was $84.8 million and $135.0 million for the six-month periods ended September 30, 2023 and October 1, 2022, respectively. Finance lease ROU assets recorded in connection with the recognition of new lease liabilities was $0.5 million for the six-month period ended September 30, 2023. No finance lease ROU assets were recorded in connection with the recognition of new lease liabilities during the six-month period ended October 1, 2022. Additionally, $27.1 million of finance lease ROU assets were reclassified and reflected as operating lease ROU assets as a result of certain lease amendments executed during the six-month period ended September 30, 2023. Non-cash investing activities also included capital expenditures incurred but not yet paid of $31.5 million and $31.2 million for the six-month periods ended September 30, 2023 and October 1, 2022, respectively. There were no other significant non-cash investing or financing activities for any of the fiscal periods presented.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 146.9 | $ 150.5 | $ 279.0 | $ 273.9 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023
shares
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Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Patrice Louvet [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Patrice Louvet, President and Chief Executive Officer, adopted a new Rule 10b5-1 trading arrangement on August 25, 2023. Mr. Louvet's trading arrangement provides for the sale of up to an aggregate of 95,754 shares of Class A common stock until July 19, 2024. |
Name | Patrice Louvet |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 25, 2023 |
Aggregate Available | 95,754 |
Halide Alagoz [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Halide Alagöz, Chief Product Officer, adopted a new Rule 10b5-1 trading arrangement on September 19, 2023. Ms. Alagöz's trading arrangement provides for the sale of up to an aggregate of 7,000 shares of Class A common stock until March 28, 2024. |
Name | Halide Alagöz |
Title | Chief Product Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 19, 2023 |
Aggregate Available | 7,000 |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of ConsolidationThese unaudited interim consolidated financial statements present the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Periods | Fiscal Periods The Company utilizes a 52-53 week fiscal year ending on the Saturday immediately before or after March 31. As such, fiscal year 2024 will end on March 30, 2024 and will be a 52-week period ("Fiscal 2024"). Fiscal year 2023 ended on April 1, 2023 and was also a 52-week period ("Fiscal 2023"). The second quarter of Fiscal 2024 ended on September 30, 2023 and was a 13-week period. The second quarter of Fiscal 2023 ended on October 1, 2022 and was also a 13-week period.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the consolidated financial statements include reserves for bad debt, customer returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; fair value measurements; accounting for income taxes and related uncertain tax positions; valuation of stock-based compensation awards and related forfeiture rates; and reserves for restructuring activity, among others.
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Reclassifications | ReclassificationsCertain reclassifications have been made to the prior periods' financial information in order to conform to the current period's presentation |
Revenue Recognition | Revenue Recognition The Company recognizes revenue across all channels of the business when it satisfies its performance obligations by transferring control of promised products or services to its customers, which occurs either at a point in time or over time, depending on when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services. The amount of revenue recognized considers terms of sale that create variability in the amount of consideration that the Company ultimately expects to be entitled to in exchange for the products or services, and is subject to an overall constraint that a significant revenue reversal will not occur in future periods. Sales and other related taxes collected from customers and remitted to government authorities are excluded from revenue. Revenue from the Company's retail business is recognized when the customer takes physical possession of the products, which occurs either at the point of sale for merchandise purchased at the Company's own retail stores and shop-within-shop locations, or upon receipt of shipment for merchandise ordered through direct-to-consumer digital commerce sites. Such revenues are recorded net of estimated returns based on historical trends. Payment is due at the point of sale. Gift cards purchased by customers are recorded as a liability until they are redeemed for products sold by the Company's retail business, at which point revenue is recognized. The Company also estimates and recognizes revenue for gift card balances not expected to ever be redeemed (referred to as "breakage") to the extent that it does not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdiction as unclaimed or abandoned property. Such estimates are based upon historical redemption trends, with breakage income recognized in proportion to the pattern of actual customer redemptions. Revenue from the Company's wholesale business is generally recognized upon shipment of products, at which point title passes and risk of loss is transferred to the customer. In certain arrangements where the Company retains the risk of loss during shipment, revenue is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results.Revenue from the Company's licensing arrangements is recognized over time during the period that licensees are provided access to the Company's trademarks (i.e., symbolic intellectual property) and benefit from such access through their own sales of licensed products. These arrangements require licensees to pay a sales-based royalty, which for most arrangements, may be subject to a contractually-guaranteed minimum royalty amount. Payments are generally due quarterly and, depending on time of receipt, may be recorded as a liability until recognized as revenue. The Company recognizes revenue for sales-based royalty arrangements (including those for which the royalty exceeds any contractually-guaranteed minimum royalty amount) as licensed products are sold by the licensee. If a sales-based royalty is not ultimately expected to exceed a contractually-guaranteed minimum royalty amount, the minimum is generally recognized as revenue ratably over the respective contractual period. This sales-based output measure of progress and pattern of recognition best represents the value transferred to the licensee over the term of the arrangement, as well as the amount of consideration that the Company is entitled to receive in exchange for providing access to its trademarks.Deferred IncomeDeferred income represents cash payments received in advance of the Company's transfer of control of products or services to its customers and generally consists of unredeemed gift cards (net of breakage) and advance royalty payments from its licensees.
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Shipping and Handling Costs | Shipping and Handling CostsCosts associated with shipping goods to customers are accounted for as fulfillment activities and reflected as selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Costs of preparing merchandise for sale, such as picking, packing, warehousing, and order charges ("handling costs"), are also included in SG&A expenses. Shipping and handling costs billed to customers are included in revenue. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income attributable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company's Class A and Class B common stock. Diluted net income per common share adjusts basic net income per common share for the dilutive effects of outstanding restricted stock units ("RSUs") and any other potentially dilutive instruments, only for the periods in which such effects are dilutive. The Company has outstanding performance-based RSUs, which are included in the computation of diluted shares only to the extent that the underlying performance conditions (i) have been satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive.
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Accounts Receivable | Accounts Receivable In the normal course of business, the Company extends credit to wholesale customers that satisfy certain defined credit criteria. Payment is generally due within 30 to 120 days and does not involve a significant financing component. Accounts receivable are recorded at amortized cost, which approximates fair value, and are presented in the consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see the "Revenue Recognition" section above for further discussion of related accounting policies) and (ii) allowances for doubtful accounts. An allowance for doubtful accounts is determined through analysis of accounts receivable aging, assessments of collectability based on evaluation of historical trends, the financial condition of the Company's customers and their ability to withstand prolonged periods of adverse economic conditions, and evaluation of the impact of current and forecasted economic and market conditions over the related asset's contractual life, among other factors.
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Inventories | InventoriesThe Company holds inventory that is sold in its retail stores and digital commerce sites directly to consumers. The Company also holds inventory that is to be sold through wholesale distribution channels to major department stores, specialty stores, and third-party digital partners. Substantially all of the Company's inventories consist of finished goods, which are stated at the lower of cost or estimated realizable value, with cost determined on a weighted-average cost basis. |
Supplier Finance Program | Supplier Finance ProgramThe Company supports a voluntary supplier finance program which provides certain of its inventory suppliers the opportunity, at their sole discretion, to sell their receivables due from the Company (which are generally due within 90 days) to a participating financial institution in exchange for receipt of a discounted payment amount made earlier than the payment term stipulated between the Company and the supplier. The Company's vendor payment terms and amounts due are not impacted by a supplier's decision to participate in the program. The Company has not pledged any assets and does not provide guarantees under the supplier finance program. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivative financial instruments on its consolidated balance sheets at fair value. Changes in the fair value of derivative instruments that are designated and qualify for hedge accounting are either (i) offset through earnings against the changes in fair value of the related hedged assets, liabilities, or firm commitments or (ii) recognized in equity as a component of accumulated other comprehensive income (loss) ("AOCI") until the hedged item is recognized in earnings, depending on whether the instrument is hedging against changes in fair value or cash flows and net investments, respectively. Each derivative instrument that qualifies for hedge accounting is expected to be highly effective in offsetting the risk associated with the related exposure. For each instrument that is designated as a hedge, the Company documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item, and the risk exposure, as well as how hedge effectiveness will be assessed over the instrument's term. To assess hedge effectiveness at the inception of a hedging relationship, the Company generally uses regression analysis, a statistical method, to evaluate how changes in the fair value of the derivative instrument are expected to offset changes in the fair value or cash flows of the related hedged item. The extent to which a hedging instrument has been and is expected to remain highly effective in achieving offsetting changes in fair value or cash flows is assessed by the Company on at least a quarterly basis. Given its use of derivative instruments, the Company is exposed to the risk that counterparties to such contracts will fail to meet their contractual obligations. To mitigate such counterparty credit risk, the Company's policy is to only enter into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings and certain other factors, adhering to established limits for credit exposure. The Company's established policies and procedures for mitigating credit risk include ongoing review and assessment of its counterparties' creditworthiness. The Company also enters into master netting arrangements with counterparties, when possible, to further mitigate credit risk. In the event of default or termination, these arrangements allow the Company to net-settle amounts payable and receivable related to multiple derivative transactions with the same counterparty. The master netting arrangements specify a number of events of default and termination, including the failure to make timely payments. The fair values of the Company's derivative instruments are recorded on its consolidated balance sheets on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities for its forward foreign exchange contracts and within cash flows from investing activities for its cross-currency swap contracts, both as discussed below. Cash Flow Hedges The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency. To the extent designated as cash flow hedges, related gains or losses on such instruments are initially deferred in equity as a component of AOCI and are subsequently recognized within cost of goods sold in the consolidated statements of operations when the related inventory is sold. If a derivative instrument is dedesignated or if hedge accounting is discontinued because the instrument is not expected to be highly effective in hedging the designated exposure, any further gains (losses) are recognized in earnings each period within other income (expense), net. Upon discontinuance of hedge accounting, the cumulative change in fair value of the derivative instrument recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the hedging strategy, unless the related forecasted transaction is probable of not occurring, in which case the accumulated amount is immediately recognized within other income (expense), net. Hedges of Net Investments in Foreign Operations The Company periodically uses cross-currency swap contracts to reduce risk associated with exchange rate fluctuations on certain of its net investments in foreign subsidiaries. Changes in the fair values of such derivative instruments that are designated as hedges of net investments in foreign operations are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments. In assessing the effectiveness of such hedges, the Company uses a method based on changes in spot rates to measure the impact of foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related hedging instrument. Under this method, changes in the fair value of the hedging instrument other than those due to changes in the spot rate are initially recorded in AOCI as a translation adjustment and are amortized into earnings as interest expense using a systematic and rational method over the instrument's term. Changes in fair value associated with the effective portion (i.e., those due to changes in the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment. Undesignated Hedges The Company uses undesignated hedges primarily to hedge foreign currency exchange rate risk related to third-party and intercompany balances and exposures. Changes in the fair values of such instruments are recognized in earnings each period within other income (expense), net.
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Summary of Significant Accounting Policies (Tables) |
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Summary of Significant Accounting Policies (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractually-Guaranteed Minimum Royalties | As of September 30, 2023, contractually-guaranteed minimum royalty amounts expected to be recognized as revenue during future periods were as follows:
(a)Amounts presented do not contemplate potential contract renewals or royalties earned in excess of the contractually-guaranteed minimums.
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Disaggregation of Revenue | The following tables disaggregate the Company's net revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors for the fiscal periods presented:
(a)Net revenues from the Company's retail and wholesale businesses are recognized at a point in time. Net revenues from the Company's licensing business are recognized over time.
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Shipping and Handling Charges | A summary of shipping and handling costs for the fiscal periods presented is as follows:
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Summary of Basic and Diluted shares | The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to shares used to calculate diluted net income per common share as follows:
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Sales Returns and Allowances [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances | A rollforward of the activity in the Company's reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented as follows:
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Allowance for Doubtful Accounts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances | A rollforward of the activity in the Company's allowance for doubtful accounts is presented as follows:
(a)Amounts recorded to bad debt expense are included within SG&A expenses in the consolidated statements of operations.
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Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | Property and equipment, net consists of the following:
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Other Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following:
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Schedule of other non-current assets | Other non-current assets consist of the following:
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Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following:
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Schedule of non-current liabilities | Other non-current liabilities consist of the following:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Instruments | Debt consists of the following:
(a)The carrying value of the 3.750% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $1.3 million and $1.6 million as of September 30, 2023 and April 1, 2023, respectively. (b)The carrying value of the 2.950% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $9.2 million and $9.9 million as of September 30, 2023 and April 1, 2023, respectively.
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial assets and liabilities measured and recorded at fair value on recurring basis | The following table summarizes the Company's financial assets and liabilities that are measured and recorded at fair value on a recurring basis, excluding accrued interest components:
(a)Based on Level 2 measurements.
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Carrying value and the estimated fair value of the Company's debt obligations | The following table summarizes the carrying values and the estimated fair values of the Company's debt instruments:
(a)See Note 9 for discussion of the carrying values of the Company's senior notes. (b)Based on Level 2 measurements.
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Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's outstanding derivative instruments on a gross basis as recorded on its consolidated balance sheets | The following table summarizes the Company's outstanding derivative instruments recorded on its consolidated balance sheets as of September 30, 2023 and April 1, 2023:
(a)FC = Forward foreign currency exchange contracts. (b)PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCA = Other non-current assets. (c)Includes cross-currency swaps designated as hedges of the Company's net investment in certain foreign operations. (d)Relates to third-party and intercompany foreign currency-denominated exposures and balances.
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Offsetting Assets | The Company presents the fair values of its derivative assets and liabilities recorded on its consolidated balance sheets on a gross basis, even when they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its derivative instruments on a net basis in accordance with the terms of each of its master netting arrangements, spread across eight separate counterparties, the amounts presented in the consolidated balance sheets as of September 30, 2023 and April 1, 2023 would be adjusted from the current gross presentation as detailed in the following table:
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Gains (losses) recognized in AOCI or earnings from derivatives designated as hedging instruments | The following tables summarize the pretax impact of gains and losses from the Company's designated derivative instruments on its consolidated financial statements for the three-month and six-month periods ended September 30, 2023 and October 1, 2022:
(a)Amounts recognized in other comprehensive income (loss) ("OCI") relating to the effective portion of the Company's net investment hedges would be recognized in earnings only upon the sale or liquidation of the hedged net investment.
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Gains (losses) recognized in earnings from derivatives not designated as hedging instruments | The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its consolidated financial statements for the three-month and six-month periods ended September 30, 2023 and October 1, 2022:
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Repurchased Common Stock | A summary of the Company's repurchases of Class A common stock under its common stock repurchase program is as follows:
(a)Excludes excise tax of $1.0 million incurred during the six months ended September 30, 2023. See Note 8 for further discussion regarding excise tax on share repurchases made after December 31, 2022.
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Accumulated Other Comrehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents OCI activity, net of tax, accumulated in equity:
(a)OCI before reclassifications to earnings related to foreign currency translation gains (losses) includes income tax provisions of $2.9 million and $30.1 million for the six-month periods ended September 30, 2023 and October 1, 2022, respectively. OCI before reclassifications to earnings for the six-month periods ended September 30, 2023 and October 1, 2022 includes losses of $0.8 million (net of a $0.3 million income tax benefit) and gains of $66.0 million (net of a $21.1 million income tax provision), respectively, related to changes in the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations (see Note 11). (b)OCI before reclassifications to earnings related to net unrealized gains (losses) on cash flow hedges are presented net of income tax provisions of $2.3 million and $3.9 million for the six-month periods ended September 30, 2023 and October 1, 2022, respectively. The tax effects on amounts reclassified from AOCI to earnings are presented in a table below. (c)Activity is presented net of taxes, which were immaterial for both periods presented.
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Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents reclassifications from AOCI to earnings for cash flow hedges, by component:
(a)FC = Forward foreign currency exchange contracts.
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Stock-based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the total compensation expense and the associated income tax benefits recognized related to stock-based compensation arrangements | A summary of total stock-based compensation expense and the related income tax benefits recognized during the three-month and six-month periods ended September 30, 2023 and October 1, 2022 is as follows:
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share Based Payment Award with Market Condition Valuation Assumptions Table Text Block [Table] | The assumptions used to estimate the fair value of TSR awards granted during the six-month periods ended September 30, 2023 and October 1, 2022 were as follows:
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Service Based Restricted Stock Units [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock unit activity | A summary of service-based RSU activity during the six months ended September 30, 2023 is as follows:
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Performance shares, including TSR awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock unit activity | A summary of performance-based RSU activity including TSR awards during the six months ended September 30, 2023 is as follows:
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Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues by segment | Net revenues for each of the Company's segments are as follows:
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Net operating income (loss) by segment | Operating income for each of the Company's segments is as follows:
(a)The three-month and six-month periods ended September 30, 2023 and October 1, 2022 included certain unallocated restructuring and other charges, net (see Note 7), which are detailed below:
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Unallocated restructuring and other charges | The three-month and six-month periods ended September 30, 2023 and October 1, 2022 included certain unallocated restructuring and other charges, net (see Note 7), which are detailed below:
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Depreciation and amortization by segment | Depreciation and amortization expense for the Company's segments is as follows:
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Net revenues by geographic location | Net revenues by geographic location of the reporting subsidiary are as follows:
(a)Net revenues for certain of the Company's licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license. (b)Includes the U.S., Canada, and Latin America. Net revenues earned in the U.S. during the three-month and six-month periods ended September 30, 2023 were $726.7 million and $1.370 billion, respectively, and $737.3 million and $1.449 billion during the three-month and six-month periods ended October 1, 2022, respectively. (c)Includes the Middle East. (d)Includes Australia and New Zealand.
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Additional Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents, and Restricted Cash | A reconciliation of cash, cash equivalents, and restricted cash as of September 30, 2023 and April 1, 2023 from the consolidated balance sheets to the consolidated statements of cash flows is as follows:
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Cash Paid for Interest and Taxes | Cash paid for interest and income taxes is as follows:
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Cash Paid for Leases | The following table summarizes certain cash flow information related to the Company's leases:
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Description of Business (Details) |
6 Months Ended |
---|---|
Sep. 30, 2023
Segment
| |
Description of Business [Abstract] | |
Number of reportable segments | 3 |
Summary of Significant Accounting Policies (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Accounting Policies [Abstract] | |
Contractually-Guaranteed Minimum Royalties - Remainder of Fiscal 2024 | $ 46.8 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2025 | 64.5 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2026 | 47.9 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2027 | 46.0 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2028 | 11.8 |
Contractually-Guaranteed Minimum Royalties - Fiscal 2029 and Thereafter | 0.0 |
Contractually-Guaranteed Minimum Royalties - Total | $ 217.0 |
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 1,633.0 | $ 1,579.9 | $ 3,129.5 | $ 3,070.5 |
North America segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 717.8 | 726.6 | 1,349.5 | 1,427.3 |
Europe segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 526.8 | 493.5 | 977.3 | 909.1 |
Asia segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 348.4 | 316.4 | 725.9 | 650.5 |
Other Non-Reportable Segment-Related [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 40.0 | 43.4 | 76.8 | 83.6 |
Transferred at Point in Time [Member] | Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 994.3 | 917.0 | 1,984.1 | 1,884.6 |
Transferred at Point in Time [Member] | Retail [Member] | North America segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 437.8 | 424.0 | 848.8 | 861.8 |
Transferred at Point in Time [Member] | Retail [Member] | Europe segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 238.4 | 204.8 | 465.1 | 420.7 |
Transferred at Point in Time [Member] | Retail [Member] | Asia segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 318.1 | 288.2 | 670.2 | 602.1 |
Transferred at Point in Time [Member] | Retail [Member] | Other Non-Reportable Segment-Related [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Transferred at Point in Time [Member] | Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 598.7 | 619.5 | 1,068.6 | 1,102.3 |
Transferred at Point in Time [Member] | Wholesale [Member] | North America segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 280.0 | 302.6 | 500.7 | 565.5 |
Transferred at Point in Time [Member] | Wholesale [Member] | Europe segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 288.4 | 288.7 | 512.2 | 488.4 |
Transferred at Point in Time [Member] | Wholesale [Member] | Asia segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 30.3 | 28.2 | 55.7 | 48.4 |
Transferred at Point in Time [Member] | Wholesale [Member] | Other Non-Reportable Segment-Related [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Transferred over Time [Member] | Licensing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 40.0 | 43.4 | 76.8 | 83.6 |
Transferred over Time [Member] | Licensing [Member] | North America segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Transferred over Time [Member] | Licensing [Member] | Europe segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Transferred over Time [Member] | Licensing [Member] | Asia segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0.0 | 0.0 | 0.0 | 0.0 |
Transferred over Time [Member] | Licensing [Member] | Other Non-Reportable Segment-Related [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 40.0 | $ 43.4 | $ 76.8 | $ 83.6 |
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Accounting Policies [Abstract] | ||||
Shipping Costs | $ 19.2 | $ 17.7 | $ 36.1 | $ 35.0 |
Handling Costs | $ 41.5 | $ 39.7 | $ 80.7 | $ 76.7 |
Summary of Significant Accounting Policies (Details 3) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Summary of basic and diluted shares | ||||
Basic shares | 65.6 | 68.0 | 65.7 | 69.0 |
Dilutive effect of RSUs | 1.6 | 1.0 | 1.6 | 1.3 |
Diluted shares | 67.2 | 69.0 | 67.3 | 70.3 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.4 |
Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Sales Returns and Allowances [Member] | ||||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | ||||
Beginning reserve balance | $ 135.2 | $ 157.4 | $ 148.1 | $ 180.7 |
Amount charged against revenue to increase reserve | 122.4 | 115.5 | 218.0 | 202.2 |
Amount credited against customer accounts to decrease reserve | (108.5) | (99.4) | (216.0) | (202.7) |
Foreign currency translation | (2.5) | (6.7) | (3.5) | (13.4) |
Ending reserve balance | 146.6 | 166.8 | 146.6 | 166.8 |
Allowance for Doubtful Accounts | ||||
Rollforward of activity in the Company's allowance for doubtful accounts and its aggregate reserves for returns, discounts, end-of-season markdowns and operational chargebacks | ||||
Beginning reserve balance | 25.6 | 27.7 | 27.2 | 34.0 |
Amount recorded to expense to decrease reserve | 1.1 | 2.5 | 0.3 | 0.6 |
Amount credited against customer accounts to decrease reserve | 0.0 | (1.6) | (0.6) | (4.9) |
Foreign currency translation | (0.3) | (0.9) | (0.5) | (2.0) |
Ending reserve balance | $ 26.4 | $ 27.7 | $ 26.4 | $ 27.7 |
Summary of Significant Accounting Policies (Details Textual) $ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023
USD ($)
Customer
|
Apr. 01, 2023
USD ($)
|
Oct. 01, 2022
USD ($)
|
|
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Deferred income | $ 15.1 | $ 14.1 | |
Wholesale customer payment terms | 30 to 120 days | ||
Number Of Key Department Store Customers | Customer | 3 | ||
Inventory, Net | $ 1,195.3 | 1,071.3 | $ 1,261.0 |
Supplier Finance Program, Payment Timing, Period | 90 days | ||
Supplier Finance Program, Obligation, Current | $ 177.5 | $ 122.2 | |
Total Net Revenue [Member] | Customer Concentration Risk | Three largest wholesale customers | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Contribution of Key Wholesale Customers | 16.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk | Three largest wholesale customers | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Contribution of Key Wholesale Customers | 31.00% |
Property and Equipment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Apr. 01, 2023 |
|
Property and equipment, net | |||||
Land and improvements | $ 15.3 | $ 15.3 | $ 15.3 | ||
Buildings and improvements | 416.3 | 416.3 | 471.9 | ||
Furniture and fixtures | 615.6 | 615.6 | 608.8 | ||
Machinery and equipment | 381.7 | 381.7 | 375.9 | ||
Capitalized software | 546.6 | 546.6 | 541.1 | ||
Leasehold improvements | 1,226.1 | 1,226.1 | 1,216.1 | ||
Construction in progress | 50.1 | 50.1 | 60.9 | ||
Property and equipment, gross | 3,251.7 | 3,251.7 | 3,290.0 | ||
Less: accumulated depreciation | (2,376.1) | (2,376.1) | (2,334.5) | ||
Property and equipment, net | 875.6 | 875.6 | $ 955.5 | ||
Operating costs and expenses | |||||
Depreciation expense | $ 55.2 | $ 49.6 | $ 110.1 | $ 101.0 |
Other Assets and Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Prepaid Expense and Other Assets, Current | ||
Other taxes receivable | $ 46.1 | $ 46.7 |
Non-trade receivables | 27.2 | 30.7 |
Prepaid software maintenance | 23.3 | 18.5 |
Prepaid advertising and marketing | 22.7 | 10.4 |
Derivative financial instruments, current | 13.5 | 1.7 |
Inventory return asset | 12.3 | 10.5 |
Prepaid occupancy costs | 11.8 | 5.8 |
Prepaid insurance | 7.0 | 4.1 |
Cloud computing arrangement implementation costs, current | 6.9 | 6.2 |
Prepaid logistic services | 6.3 | 6.5 |
Tenant allowances receivable, current | 3.4 | 3.9 |
Other prepaid expenses and other current assets | 40.7 | 43.7 |
Prepaid expenses and other current assets | 221.2 | 188.7 |
Other Assets, Noncurrent | ||
Derivative financial instruments, noncurrent | 41.8 | 42.8 |
Security deposits | 31.7 | 33.0 |
Cloud computing arrangement implementation costs, noncurrent | 15.1 | 10.1 |
Equity method and other investments | 9.7 | 10.6 |
Deferred rent assets | 6.6 | 6.8 |
Restricted cash, noncurrent | 5.4 | 6.1 |
Other non-current assets | 26.6 | 23.6 |
Total other non-current assets | 136.9 | 133.0 |
Accrued Expenses and Other Current Liabilities | ||
Accrued inventory | 239.3 | 212.3 |
Accrued operating expenses | 193.5 | 194.4 |
Accrued payroll and benefits | 164.0 | 198.1 |
Other taxes payable | 65.2 | 32.8 |
Dividends payable | 48.5 | 49.2 |
Restructuring reserve, current | 36.9 | 20.8 |
Accrued capital expenditures | 31.5 | 37.2 |
Finance lease obligations, current | 18.6 | 20.3 |
Deferred income | 15.1 | 14.0 |
Other accrued expenses and current liabilities | 10.5 | 16.4 |
Total accrued expenses and other current liabilities | 823.1 | 795.5 |
Other Non-Current Liabilities | ||
Deferred lease incentives and obligations | 42.4 | 43.2 |
Deferred tax liabilities | 15.7 | 7.2 |
Accrued benefits and deferred compensation, noncurrent | 15.2 | 12.4 |
Restructuring reserve, noncurrent | 5.1 | 0.1 |
Other non-current liabilities | 36.8 | 38.0 |
Total other non-current liabilities | $ 115.2 | $ 100.9 |
Restructuring and Other Charges (Details Textual) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Apr. 01, 2023 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Other Charges | $ 4.5 | $ 5.7 | $ 9.6 | $ 10.6 | |
Charges primarily related to rent and occupancy costs associated with previously exited real estate locations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Other Charges | 4.5 | 5.7 | 9.6 | 10.6 | |
Fiscal 2024 Restructuring Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash-related restructuring charges | 6.8 | 37.3 | |||
Restructuring Reserve | 30.5 | 30.5 | |||
Payments for Restructuring | (6.8) | ||||
Fiscal 2021 Strategic Realignment Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 11.5 | 11.5 | $ 20.7 | ||
Payments for Restructuring | (8.9) | ||||
Cash-related restructuring charges | 1.4 | 2.1 | |||
Non-cash charges | 3.5 | 3.5 | |||
Restructuring and non-cash charges | 4.9 | $ 5.6 | |||
Non-cash adjustments | $ (0.3) | ||||
Fiscal 2021 Strategic Realignment Plan | Other cash charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Income | $ (2.0) | $ (3.5) |
Income Taxes (Details Textual) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Apr. 01, 2023 |
|
Income Tax Disclosure [Abstract] | |||||
Inflation Reduction Act, Percent Of Minimum Tax On Book Income | 15.00% | ||||
Inflation Reduction Act, Percent Of Excise Tax On Net Stock Repurchases | 1.00% | ||||
Effective tax rate | 11.20% | 24.80% | 17.00% | 24.40% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | |
Non-current liability for unrecognized tax benefits | $ 100.7 | $ 100.7 | $ 93.8 | ||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 63.1 | $ 63.1 | $ 59.6 |
Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,139.5 | $ 1,138.5 |
3.750% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Carrying Value, Noncurrent | 398.7 | 398.4 |
Unamortized Debt Issuance Costs | 1.3 | 1.6 |
2.950% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Carrying Value, Noncurrent | 740.8 | 740.1 |
Unamortized Debt Issuance Costs | $ 9.2 | $ 9.9 |
Debt (Details Textual) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Aug. 18, 2020 |
Sep. 26, 2018 |
Sep. 30, 2023 |
Sep. 26, 2020 |
|
2.125% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 300.0 | |||
Debt Instrument, Maturity Date | Sep. 26, 2018 | |||
Interest Rate on Debt | 2.125% | |||
2.625% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 300.0 | |||
Debt Instrument, Maturity Date | Aug. 18, 2020 | |||
Interest Rate on Debt | 2.625% | |||
3.750% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 400.0 | |||
Debt Instrument, Maturity Date | Sep. 15, 2025 | |||
Long-term debt, net of discount | 99.521% | |||
Interest Rate on Debt | 3.75% | |||
1.700% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500.0 | |||
Debt Instrument, Maturity Date | Jun. 15, 2022 | |||
Long-term debt, net of discount | 99.88% | |||
Interest Rate on Debt | 1.70% | |||
2.950% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 750.0 | |||
Debt Instrument, Maturity Date | Jun. 15, 2030 | |||
Long-term debt, net of discount | 98.995% | |||
Interest Rate on Debt | 2.95% | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Restrictive Covenants | The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions; consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants. | |||
Global Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Lines of Credit | $ 475.0 |
Debt (Details Textual 1) ¥ in Millions, $ in Millions, ₩ in Billions, ¥ in Billions |
6 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
Quarter
|
Sep. 30, 2023
CNY (¥)
|
Sep. 30, 2023
KRW (₩)
|
Sep. 30, 2023
JPY (¥)
|
Apr. 01, 2023
USD ($)
|
|
Credit Facilities (Textual) [Abstract] | |||||
Commercial Paper | $ 0.0 | $ 0.0 | |||
Maximum expected combined borrowings outstanding - Commercial Paper Program and Global Credit Facility | 750.0 | ||||
Commercial Paper [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Maximum borrowing capacity | $ 750.0 | ||||
Commercial Paper [Member] | Maximum [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Short-term Debt, Terms | 397 days | ||||
Global Credit Facility [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Borrowing capacity under unsecured revolving line of credit | $ 750.0 | ||||
Line of credit facility, expiration date | Jun. 30, 2028 | ||||
Maximum borrowing capacity | $ 1,500.0 | ||||
Commitment fee, percentage | 0.08% | ||||
Borrowings outstanding under revolving credit facilities | $ 0.0 | 0.0 | |||
Line of credit facility, contingent liability for outstanding LOCs | $ 11.8 | 11.9 | |||
Credit facility covenant terms | The Global Credit Facility contains a number of covenants that, among other things, restrict the Company's ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in businesses that are not in a related line of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make certain investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the "leverage ratio") of no greater than 4.25 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding, including finance lease obligations, plus all operating lease obligations. Consolidated EBITDAR is defined generally as consolidated net income plus (i) income tax expense, (ii) net interest expense, (iii) depreciation and amortization expense, (iv) operating lease cost, (v) restructuring and other non-recurring expenses, and (vi) acquisition-related costs. | ||||
Maximum Ratio Of Adjusted Debt To Consolidated EBITDAR As Of Date Of Measurement For Four Consecutive Quarters | 4.25 | ||||
Leverage Ratio Number Of Consecutive Fiscal Quarters Used | Quarter | 4 | ||||
Line of Credit Facility, Covenant Compliance | no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Company's Global Credit Facility | ||||
China Credit Facility [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Line of credit facility, expiration date | Apr. 03, 2024 | ||||
Maximum borrowing capacity | $ 13.0 | ¥ 100 | |||
South Korea Credit Facility [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Line of credit facility, expiration date | Oct. 25, 2024 | ||||
Maximum borrowing capacity | $ 22.0 | ₩ 30 | |||
Japan Overdraft Facility [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Line of credit facility, expiration date | Apr. 30, 2024 | ||||
Maximum borrowing capacity | $ 34.0 | ¥ 5 | |||
Pan-Asia Borrowing Facilities [Member] | |||||
Credit Facilities (Textual) [Abstract] | |||||
Borrowings outstanding under revolving credit facilities | $ 0.0 | $ 0.0 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Financial assets recorded at fair value: | ||
Derivative Asset, Fair Value | $ 55.3 | $ 44.5 |
Financial liabilities recorded at fair value: | ||
Derivative Liability, Fair Value | 0.3 | 5.7 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Financial assets recorded at fair value: | ||
Derivative Asset, Fair Value | 55.3 | 44.5 |
Financial liabilities recorded at fair value: | ||
Derivative Liability, Fair Value | $ 0.3 | $ 5.7 |
Fair Value Measurements (Details 1) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
3.750% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes, Carrying Value, Noncurrent | $ 398.7 | $ 398.4 |
2.950% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes, Carrying Value, Noncurrent | 740.8 | 740.1 |
Fair Value, Inputs, Level 2 [Member] | 3.750% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes, Fair Value | 385.6 | 393.6 |
Fair Value, Inputs, Level 2 [Member] | 2.950% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes, Fair Value | $ 641.6 | $ 677.1 |
Fair Value Measurements (Details Textual) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of Long-Lived Assets | $ 0.0 | $ 0.0 | ||
Property, Plant and Equipment [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value as of Impairment Date | $ 0.0 | $ 0.0 | ||
Impairment of Long-Lived Assets | $ 0.2 | $ 0.2 |
Fair Value Measurements (Details Textual 1) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Fair Value Disclosures [Abstract] | ||
Goodwill and other intangible asset impairment charges | $ 0.0 | $ 0.0 |
Financial Instruments (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | $ 1,193.1 | $ 1,209.9 |
Derivative Assets | ||
Derivative Asset, Fair Value | 55.3 | 44.5 |
Derivative Liabilities | ||
Derivative Liability, Fair Value | 0.3 | 5.7 |
Designated [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 981.7 | 1,045.1 |
Derivative Assets | ||
Derivative Asset, Fair Value | 53.8 | 44.2 |
Derivative Liabilities | ||
Derivative Liability, Fair Value | 0.0 | 5.0 |
Undesignated [Member] | Foreign Exchange Forward [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 211.4 | 164.8 |
Undesignated [Member] | Foreign Exchange Forward [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Assets | ||
Derivative Asset, Fair Value | 1.5 | 0.3 |
Undesignated [Member] | Foreign Exchange Forward [Member] | Accrued Expenses and Other Current Liabilities [Member] | ||
Derivative Liabilities | ||
Derivative Liability, Fair Value | 0.3 | 0.7 |
Cash Flow Hedging [Member] | Designated [Member] | Foreign Exchange Forward [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 281.7 | 345.1 |
Cash Flow Hedging [Member] | Designated [Member] | Foreign Exchange Forward [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Assets | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 12.0 | 1.4 |
Cash Flow Hedging [Member] | Designated [Member] | Foreign Exchange Forward [Member] | Accrued Expenses and Other Current Liabilities [Member] | ||
Derivative Liabilities | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0.0 | 5.0 |
Net Investment Hedging [Member] | Designated [Member] | ||
Notional Amounts of Derivative Financial Instruments | ||
Notional amount of hedges | 700.0 | 700.0 |
Net Investment Hedging [Member] | Designated [Member] | Other Noncurrent Assets [Member] | ||
Derivative Assets | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 41.8 | 42.8 |
Net Investment Hedging [Member] | Designated [Member] | Other Noncurrent Liabilities [Member] | ||
Derivative Liabilities | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value | $ 0.0 | $ 0.0 |
Financial Instruments (Details 1) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative asset, gross amount in the balance sheet | $ 55.3 | $ 44.5 |
Gross amount of derivatives assets subject to master netting arrangements not offset | (0.3) | (4.5) |
Derivative asset, net basis | 55.0 | 40.0 |
Derivative liability, gross amount in the balance sheet | 0.3 | 5.7 |
Gross amount of derivative liabilities subject to master netting arrangements not offset | (0.3) | (4.5) |
Derivative liability, net basis | $ 0.0 | $ 1.2 |
Financial Instruments (Details 2) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ 10.7 | $ 12.2 | $ 16.6 | $ 28.5 |
Other Comprehensive Income, Designated Hedges, before Reclassifications and Tax | 22.4 | 47.8 | 15.5 | 115.6 |
Cost of goods sold | (562.9) | (556.8) | (1,027.4) | (1,046.0) |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | 3.1 | 3.3 | 6.2 | 6.5 |
Designated as Hedging Instrument [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of goods sold | 1.3 | 3.7 | 6.2 | 6.5 |
Effective portion [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 20.1 | 36.0 | 17.1 | 75.7 |
Portion excluded from assessment of hedge effectiveness [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (8.4) | (0.4) | (18.2) | 11.4 |
Portion excluded from assessment of hedge effectiveness [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | $ 3.1 | $ 3.3 | $ 6.2 | $ 6.5 |
Financial Instruments (Details 3) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 6.4 | $ 13.1 | $ 9.9 | $ 24.6 |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 6.4 | $ 13.1 | $ 9.9 | $ 24.6 |
Financial Instruments (Details Textual) $ in Millions |
6 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
counterparty
| |
Derivative [Line Items] | |
Number of counterparties to master netting arrangements | counterparty | 8 |
Net gains (losses) deferred in AOCI for derivative financial instruments expected to be recognized in the earnings over the next 12 months | $ | $ 14.5 |
Minimum [Member] | Foreign Exchange Forward [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 2 months |
Maximum [Member] | Foreign Exchange Forward [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 1 year |
Financial Instruments (Details Textual 1) - USD ($) $ in Millions |
Sep. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Bank Time Deposits [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-term Investments | $ 85.1 | $ 36.4 |
Equity (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Apr. 02, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | |||||
Cost of shares repurchased | $ 169.5 | $ 182.6 | $ 226.7 | $ 417.3 | |
Stock Repurchase Program, Authorized Amount | $ 1,500.0 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,000.0 | 1,000.0 | |||
Stock Repurchase Program Excise Taxes | 1.0 | ||||
General repurchase program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Cost of shares repurchased | $ 175.0 | $ 383.9 | |||
Number of shares repurchased | 1.5 | 4.1 | |||
Withholding in satisfaction of taxes on vested equity award [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Cost of shares repurchased | $ 50.7 | $ 33.4 | |||
Number of shares repurchased | 0.4 | 0.3 |
Equity (Details Textual) - $ / shares |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 25, 2021 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Dividends (Textual) [Abstract] | |||||
Dividends declared per share | $ 0.75 | $ 0.75 | $ 0.6875 | $ 1.50 | $ 1.50 |
Dividends Payable, Date Declared | Sep. 15, 2023 | ||||
Dividends Payable, Date of Record | Sep. 29, 2023 | ||||
Dividends Payable, Date to be Paid | Oct. 13, 2023 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ||||||||
Beginning balance | $ (196.0) | |||||||
OCI before reclassifications | (61.4) | $ (71.2) | ||||||
Amounts reclassified from AOCI to earnings | (5.4) | (5.8) | ||||||
Other comprehensive income (loss), net of tax | $ (30.0) | $ (49.2) | (66.8) | (77.0) | ||||
Ending balance | (262.8) | (262.8) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 2.9 | 30.1 | ||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | (0.8) | 66.0 | ||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Tax | (0.3) | 21.1 | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | 2.3 | 3.9 | ||||||
Foreign Currency Translation Gains (Losses) [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ||||||||
Beginning balance | (203.8) | (189.7) | ||||||
OCI before reclassifications | (75.6) | (95.8) | ||||||
Amounts reclassified from AOCI to earnings | 0.0 | 0.0 | ||||||
Other comprehensive income (loss), net of tax | (75.6) | (95.8) | ||||||
Ending balance | (279.4) | (285.5) | (279.4) | (285.5) | ||||
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ||||||||
Beginning balance | 4.1 | 9.0 | ||||||
OCI before reclassifications | 14.3 | 24.6 | ||||||
Amounts reclassified from AOCI to earnings | (5.3) | (5.7) | ||||||
Other comprehensive income (loss), net of tax | 9.0 | 18.9 | ||||||
Ending balance | 13.1 | 27.9 | 13.1 | 27.9 | ||||
Net Unrealized Gains (Losses) on Defined Benefit Plans [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ||||||||
Beginning balance | 3.7 | 0.4 | ||||||
OCI before reclassifications | (0.1) | 0.0 | ||||||
Amounts reclassified from AOCI to earnings | (0.1) | (0.1) | ||||||
Other comprehensive income (loss), net of tax | (0.2) | (0.1) | ||||||
Ending balance | 3.5 | 0.3 | 3.5 | 0.3 | ||||
AOCI [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ||||||||
Beginning balance | (196.0) | (180.3) | ||||||
Other comprehensive income (loss), net of tax | (30.0) | (49.2) | (66.8) | [1] | (77.0) | [1] | ||
Ending balance | $ (262.8) | $ (257.3) | $ (262.8) | $ (257.3) | ||||
|
Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items] | ||||
Cost of goods sold | $ (562.9) | $ (556.8) | $ (1,027.4) | $ (1,046.0) |
Income tax provision | (18.6) | (49.6) | (57.1) | (88.4) |
Net income | 146.9 | 150.5 | 279.0 | 273.9 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items] | ||||
Income tax provision | (0.3) | (0.4) | (0.9) | (0.8) |
Net income | 1.0 | 3.3 | 5.3 | 5.7 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) on Derivatives [Line Items] | ||||
Cost of goods sold | $ 1.3 | $ 3.7 | $ 6.2 | $ 6.5 |
Stock-based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Summary of the total compensation expense and the associated income tax benefits recognized related to stock-based compensation arrangements | ||||
Compensation expense | $ 29.3 | $ 22.5 | $ 50.7 | $ 40.7 |
Income tax benefit | $ (4.7) | $ (3.8) | $ (8.0) | $ (6.6) |
Stock-based Compensation (Details 1) - Service-based restricted stock units [Member] shares in Thousands |
6 Months Ended |
---|---|
Sep. 30, 2023
shares
| |
Summary of RSU activity | |
Nonvested beginning balance | 1,585 |
Granted | 538 |
Vested | (985) |
Forfeited | (33) |
Nonvested ending balance | 1,105 |
Stock-based Compensation (Details 2) - Performance shares, including TSR awards shares in Thousands |
6 Months Ended |
---|---|
Sep. 30, 2023
shares
| |
Summary of RSU activity | |
Nonvested beginning balance | 469 |
Granted | 217 |
Change due to performance and/or market condition achievement | 0 |
Vested | 0 |
Forfeited | (1) |
Nonvested ending balance | 685 |
Stock-based Compensation (Details 3) - Market-based restricted stock units [Member] |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 38.40% | 49.90% |
Expected dividend yield | 2.50% | 3.00% |
Risk-free interest rate | 4.60% | 3.10% |
Stock-based Compensation (Details Textual) - $ / shares |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Service-based restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of equity awards other than options | $ 114.69 | $ 92.07 |
Performance-based restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of equity awards other than options | 114.86 | 92.45 |
Market-based restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of equity awards other than options | $ 147.19 | $ 124.62 |
Segment Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Net revenues by segment | ||||
Net revenues | $ 1,633.0 | $ 1,579.9 | $ 3,129.5 | $ 3,070.5 |
North America segment [Member] | ||||
Net revenues by segment | ||||
Net revenues | 717.8 | 726.6 | 1,349.5 | 1,427.3 |
Europe segment [Member] | ||||
Net revenues by segment | ||||
Net revenues | 526.8 | 493.5 | 977.3 | 909.1 |
Asia segment [Member] | ||||
Net revenues by segment | ||||
Net revenues | 348.4 | 316.4 | 725.9 | 650.5 |
Other non-reportable segments [Member] | ||||
Net revenues by segment | ||||
Net revenues | $ 40.0 | $ 43.4 | $ 76.8 | $ 83.6 |
Segment Information (Details 1) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Operating income by segment | ||||
Operating income | $ 164.5 | $ 206.7 | $ 330.9 | $ 381.9 |
Unallocated restructuring and other charges, net | (9.3) | (6.9) | (44.9) | (12.5) |
Unallocated charges [Member] | ||||
Operating income by segment | ||||
Unallocated corporate expenses | (171.3) | (153.8) | (318.9) | (294.9) |
Unallocated restructuring and other charges, net | (9.3) | (6.9) | (44.9) | (12.5) |
North America segment [Member] | ||||
Operating income by segment | ||||
Operating income | 110.2 | 127.1 | 235.5 | 259.9 |
Europe segment [Member] | ||||
Operating income by segment | ||||
Operating income | 132.4 | 134.6 | 229.6 | 207.8 |
Asia segment [Member] | ||||
Operating income by segment | ||||
Operating income | 68.4 | 65.7 | 161.7 | 144.4 |
Other non-reportable segments [Member] | ||||
Operating income by segment | ||||
Operating income | 34.1 | 40.0 | 67.9 | 77.2 |
Total Operating Segments | ||||
Operating income by segment | ||||
Operating income | $ 345.1 | $ 367.4 | $ 694.7 | $ 689.3 |
Segment Information (Details 3) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Unallocated restructuring benefits (charges) | $ (4.8) | $ (1.2) | $ (35.3) | $ (1.9) |
Other Charges | (4.5) | (5.7) | (9.6) | (10.6) |
Unallocated restructuring and other charges, net | (9.3) | (6.9) | (44.9) | (12.5) |
North America-Related [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated restructuring benefits (charges) | (1.6) | 0.0 | (5.5) | 0.0 |
Europe-Related [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated restructuring benefits (charges) | 0.7 | 0.0 | (0.7) | 1.1 |
Asia-Related [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated restructuring benefits (charges) | (2.1) | 0.0 | (3.5) | 0.2 |
Corporate-Related [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated restructuring benefits (charges) | $ (1.8) | $ (1.2) | $ (25.6) | $ (3.2) |
Segment Information (Details 4) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | $ 58.5 | $ 53.3 | $ 116.8 | $ 108.1 |
North America segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 20.1 | 18.0 | 40.4 | 36.2 |
Europe segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 9.3 | 7.3 | 18.1 | 15.1 |
Asia segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | 13.4 | 11.5 | 26.7 | 23.6 |
Unallocated Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | $ 15.7 | $ 16.5 | $ 31.6 | $ 33.2 |
Segment Information (Details 5) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Revenues from External Customers [Line Items] | ||||
Net revenues | $ 1,633.0 | $ 1,579.9 | $ 3,129.5 | $ 3,070.5 |
Americas [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Net revenues | 763.3 | 777.0 | 1,439.9 | 1,523.2 |
Europe Member] | ||||
Revenues from External Customers [Line Items] | ||||
Net revenues | 521.3 | 486.4 | 963.7 | 896.8 |
Asia [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Net revenues | 348.4 | 316.5 | 725.9 | 650.5 |
U.S. [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Net revenues | $ 726.7 | $ 737.3 | $ 1,370.0 | $ 1,449.0 |
Segment Information (Details Textual) |
6 Months Ended |
---|---|
Sep. 30, 2023
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Additional Financial Information (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Apr. 01, 2023 |
Apr. 02, 2022 |
|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and Cash Equivalents | $ 1,381.8 | $ 1,529.3 | ||
Restricted cash, current | 1.4 | 1.5 | ||
Restricted cash, noncurrent | 5.4 | 6.1 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,388.6 | $ 1,114.2 | $ 1,536.9 | $ 1,872.0 |
Cash Paid for Interest and Taxes | ||||
Cash paid for interest | 17.4 | 22.1 | ||
Cash paid for income taxes, net of refunds | 92.6 | 55.9 | ||
Additional Financial Information (Textual) | ||||
Right-of-use asset obtained in exchange for operating lease liability | 84.8 | 135.0 | ||
Right-of-use asset obtained in exchange for finance lease liability | 0.5 | 0.0 | ||
Right-of-use asset reclassified from finance to operating lease | 27.1 | |||
Capital expenditures incurred but not yet paid | 31.5 | 31.2 | ||
Cash Paid for Leases | ||||
Operating cash flows from operating leases | 145.4 | 169.1 | ||
Operating cash flows from finance leases | 5.0 | 5.7 | ||
Finance cash flows from finance leases | $ 11.2 | $ 10.8 |