Ralph Lauren Corporation stock research
FY2025 Q4
Ralph Lauren (RL) Gross Margin — Quarter Ended Mar 29, 2025
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved slightly from the prior quarter and more notably from the year-ago quarter, as cost of revenue declined proportionally more than revenue.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved slightly from the prior quarter and more notably from the year-ago quarter, as cost of revenue declined proportionally more than revenue.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue fell more sharply than revenue from the prior quarter, supporting margin expansion.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was slightly higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.7%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$532.0M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+2.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 29, 2024 | $1.5B | $1.1B | $446.4M | 70.5% |
| Sep 28, 2024 | $1.7B | $1.2B | $570.3M | 67.0% |
| Dec 28, 2024 | $2.1B | $1.5B | $677.4M | 68.4% |
| Mar 29, 2025 | $1.7B | $1.2B | $532.0M | 68.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 28, 2024
+0.3 pts
Year-over-year change
Mar 30, 2024
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue fell more sharply than revenue from the prior quarter, supporting margin expansion.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was slightly higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.