Interviews
News Flash
'We continue to navigate well through uncertain times' – Polo Ralph
10 Aug '09
5 min read
Gross Profit. Gross profit for the first quarter declined 6% to $601 million from $638 million in the first quarter of Fiscal 2009, although the gross profit rate increased 140 basis points to 58.7%. The expansion in the gross profit rate reflects improved wholesale and retail segment margins, particularly in Europe and Japan, as well as supply chain cost savings initiatives.
Operating Expenses. Operating expenses declined 2% in the first quarter to $484 million, compared to $492 million in the first quarter of Fiscal 2009. Operating expenses as a percent of revenues were 47.3%, 310 basis points higher than last year, primarily as a result of lower sales and incremental expenses associated with newly acquired and emerging international businesses that were partially offset by Company-wide expense savings initiatives and a net favorable foreign currency effect.
Operating Income. Operating income for the first quarter of Fiscal 2010 was $117 million, 20% below the prior year period, and the operating margin was 11.4%, 180 basis points below the first quarter of Fiscal 2009. The declines in operating income and the operating margin rate reflect lower sales volumes and higher operating expenses associated with business expansion that were partially offset by the higher gross profit rate discussed above.
• Wholesale Operating Income. Wholesale operating income was $76 million in the first quarter of Fiscal 2010, 29% below the prior year period, and the wholesale operating margin was 14.6%, 410 basis points below the prior year. Lower domestic shipment volumes, expenses associated with integrating the Japanese childrenswear and golf apparel operations and the net unfavorable effect of foreign currency translation more than offset an improved wholesale segment gross profit rate.
• Retail Operating Income. Retail operating income was $70 million, 4% higher than the $67 million achieved in the first quarter of Fiscal 2009, and retail operating margin was 15.1% compared to 13.6% in the prior year period. The growth in retail operating income and the expansion in margin rate was a result of strong international performance and the benefit of restructuring actions taken in the fourth quarter of Fiscal 2009 that more than offset the decline in retail segment revenues.
• Licensing Operating Income. Licensing operating income increased 6% to $26 million compared to $24 million in the first quarter of Fiscal 2009. The improvement in licensing operating income is primarily related to lower costs associated with the transition of formerly licensed operations to directly controlled operations that more than offset the decline in licensing revenue.
Click here to view more:
Operating Expenses. Operating expenses declined 2% in the first quarter to $484 million, compared to $492 million in the first quarter of Fiscal 2009. Operating expenses as a percent of revenues were 47.3%, 310 basis points higher than last year, primarily as a result of lower sales and incremental expenses associated with newly acquired and emerging international businesses that were partially offset by Company-wide expense savings initiatives and a net favorable foreign currency effect.
Operating Income. Operating income for the first quarter of Fiscal 2010 was $117 million, 20% below the prior year period, and the operating margin was 11.4%, 180 basis points below the first quarter of Fiscal 2009. The declines in operating income and the operating margin rate reflect lower sales volumes and higher operating expenses associated with business expansion that were partially offset by the higher gross profit rate discussed above.
• Wholesale Operating Income. Wholesale operating income was $76 million in the first quarter of Fiscal 2010, 29% below the prior year period, and the wholesale operating margin was 14.6%, 410 basis points below the prior year. Lower domestic shipment volumes, expenses associated with integrating the Japanese childrenswear and golf apparel operations and the net unfavorable effect of foreign currency translation more than offset an improved wholesale segment gross profit rate.
• Retail Operating Income. Retail operating income was $70 million, 4% higher than the $67 million achieved in the first quarter of Fiscal 2009, and retail operating margin was 15.1% compared to 13.6% in the prior year period. The growth in retail operating income and the expansion in margin rate was a result of strong international performance and the benefit of restructuring actions taken in the fourth quarter of Fiscal 2009 that more than offset the decline in retail segment revenues.
• Licensing Operating Income. Licensing operating income increased 6% to $26 million compared to $24 million in the first quarter of Fiscal 2009. The improvement in licensing operating income is primarily related to lower costs associated with the transition of formerly licensed operations to directly controlled operations that more than offset the decline in licensing revenue.
Click here to view more:
Polo Ralph Lauren Corporation
Popular News
Leave your Comments
Editor’s Pick
Therese Premler-Andersson
Textile Machinery Association of Sweden (TMAS)
J Rajaraman
Canadian Solar Energy Private Limited
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
