Polo Ralph Lauren achieves outstanding results

05 Aug '10

3 min read

Polo Ralph Lauren Corporation reported net income of $121 million, or $1.21 per diluted share, for the first quarter of Fiscal 2011, compared to net income of $77 million, or $0.76 per diluted share, for the first quarter of Fiscal 2010.

"Our strong results reflect our ongoing commitment to elevating our brand and our relentless focus on product innovation," said Ralph Lauren, Chairman and Chief Executive Officer.

"Our Company is operating on a whole new level with increased control of our business across product categories and around the world. We are in a position to accelerate the growth of the World of Ralph Lauren through exciting new merchandise categories and strategic store openings. The passion, creativity and discipline of our organization are now being leveraged on a growing global scale."

"Our first quarter results are outstanding by any measure," said Roger Farah, President and Chief Operating Officer. "The broad-based strength we've achieved across regions, product categories and channels is testimony to the growing appeal of our brands and the discipline of our global teams, particularly as we continue to reinvest heavily back into the business.

“We are excited about the incremental opportunities that lie ahead for us. With the assumption of our South Korean operations later this fiscal year, we are in a position to execute a fully integrated Asian growth strategy we've been planning for several years. Even though global market conditions remain uncertain, we are continuing our commitment to our strategic growth initiatives while navigating through near-term uncertainty in order to deliver compelling shareholder value over the long term."

First Quarter Fiscal 2011 Highlights

Net Revenues. Net revenues for the first quarter of Fiscal 2011 increased 13% to $1.2 billion from $1.0 billion in the comparable period last year. The growth in net revenues reflects double-digit gains in the wholesale and retail segments that were partially offset by lower licensing revenues.

• Wholesale Sales. Wholesale segment sales rose 11% to $523 million from $472 million in the first quarter of Fiscal 2010, supported by double-digit shipment growth in the United States and in constant currency in Europe. Shipments of core men's, women's and children's apparel merchandise and footwear were particularly strong during the quarter.
• Retail Sales. Retail segment sales increased 16% to $593 million from $511 million in the prior year period, supported by incremental sales from newly assumed Asian stores and concession shops, comparable store sales growth and the contribution from new stores. Consolidated comparable store sales, which include reclassified Japanese concession shops, rose 7% during the first quarter, reflecting a 2% reduction at Ralph Lauren stores, an 8% increase at factory stores and 25% growth at Club Monaco. RalphLauren.com continued to expand at a double-digit rate, with sales up 15% in the first quarter.
• Licensing. First quarter licensing revenues were $38 million, 8% below the prior year period. The decline in licensing revenue is primarily attributable to the transition of certain formerly licensed Asian operations and lower home licensing revenues.

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