Home / Knowledge / News / Fashion / 'Better than expected Q2 operating margin' - Ralph Lauren
'Better than expected Q2 operating margin' - Ralph Lauren
04
Nov '14
Luxury fashion good marketer and NYSE-listed – Ralph Lauren said it has reported better-than-expected operating margin for the second fiscal quarter ending September 27, 2014.

Although, operating margin which stood at 14.4% in the second fiscal quarter of 2014, 100 basis points below the second quarter of 2013, Ralph Lauren said it is better, than the outlook provided in August.

According to the luxury fashion marketer, operating margin performed better than expected, due to strong and proactive operational management, in addition to a shift in the timing of certain expenses into the back half of the fiscal year.

It also added that the lower operating margin in the second quarter of 2014 is a result of higher operating expenses associated with incremental investments in the Company’s long-term growth strategies.

Ralph Lauren posted net income of $201 million, or $2.25 per diluted share, for the second quarter of 2014, down from $205 million, or $2.23 per diluted share, for the second quarter of 2013.

Net revenues for the reporting quarter rose 4% from a year ago quarter, to $2.0 billion led by retail segment expansion, including double-digit international growth.

Of which, wholesale segment sales were up 2% to $943 million and retail sales increased 7% to $1.0 billion in the second quarter of 2014, led by double-digit growth globally and e-commerce operations.

It said consolidated comparable store sales increased 1% year-on-year on both a reported and constant currency basis during the second quarter.

Licensing revenues of $45 million in the second quarter of 2014 were 2% above the prior year period, reflecting higher royalties from increased sales of Ralph Lauren products.

Gross profit for the second quarter of 2014 went up by 4% to $1.1 billion and gross profit margin of 56.8% was 20 basis points above the prior year period, primarily due to favourable channel and geographic mix.

In the quarter under review, operating expenses touched $846 million, up 7% higher than the prior year period. According to Ralph Lauren, higher operating expenses are attributable to incremental investments in global retail development, advertising, marketing and infrastructure.

Operating income for the second quarter of 2014 touched $286 million, 3% below the second quarter of 2013, while operating margin was 14.4%, 100 basis points below the second quarter of 2013.

In the third quarter of 2014, Ralph Lauren expects revenues to hike by 3%-5%, including a 200 basis point net negative impact from foreign currency translation and operating margin is expected to be around 100-150 basis points below the comparable prior year period.

“I am confident we are well-positioned for the upcoming Holiday season, supported by the distinctiveness of our luxury lifestyle positioning and the desirability of our products,” President, Jacki Nemerov said. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 19th Apr 2021

NCTO seeks approval for collection of China 301 duties

The National Council of Textile Organizations (NCTO) of the US has...

Pic: Dong Nhat Huy / Shutterstock.com

Apparel/Garments | On 19th Apr 2021

Vietnam's export sectors become M&A targets for foreigners

Vietnam's textiles-garment and leather-footwear sectors are facing a...

Pic: Canada Goose

Apparel/Garments | On 19th Apr 2021

Canada Goose commits to transitioning 90% materials to PFMs by 2025

Luxury apparel maker Canada Goose is committed to transitioning 90...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Wearables have very limited reach

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Vikram Juneja,

Vikram Juneja

Jaquard is a training institute providing a highly specialised training...

Kriti Kanodia,

Kriti Kanodia

A TV show in 2012 where actor Sonam Kapoor <g...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search