Polo Ralph reports Q4 & full year fiscal 2008 results

May 28, 2008 - United States Of America

Polo Ralph Lauren Corporation reported net income of $104 million, or $1.00 per diluted share, for the fourth quarter of Fiscal 2008, compared to net income of $73 million, or $0.68 per diluted share, for the fourth quarter of Fiscal 2007. The fourth quarter results include the net dilutive impact associated with recent acquisitions, including non-cash amortization of $8 million, as well as a lower effective tax rate.

For the fiscal year, net income grew to $420 million, or $3.99 per diluted share, compared to net income of $401 million, or $3.73 per diluted share for Fiscal 2007. The full year Fiscal 2008 results also reflect the net dilutive impact related to the recent acquisitions, including non-cash amortization of $53 million, as well as a lower effective tax rate.

The lower effective tax rate for both the fourth quarter and full year Fiscal 2008 periods was primarily due to the resolution of discrete tax items that were partially offset by higher tax expense associated with the adoption of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), as well as a greater portion of earnings generated in lower taxed foreign jurisdictions as compared with the United States.

"As I reflect on being in business for the last forty years, what strikes me the most is that our brands continue to get stronger. Innovation lies at the heart of our Company. It is the spirit of entrepreneurship that keeps us nimble, allowing us to develop exciting products, retail formats and even entirely new brands on a global platform," said Ralph Lauren, Chairman and Chief Executive Officer.

"I am proud of the progress our Company made during the year considering the significant challenges that emerged in the second half. Our business has endured through good times and bad, something I attribute to our singularity of purpose and vision, our dedication to superior quality and design, a deep understanding of our customer and a consistent investment in advertising and brand messaging. As we enter this new fiscal year amidst uncertainty, I remain proud of our heritage and excited about the future," Mr. Lauren added.

"I believe the strength of our fourth quarter and full year results is particularly noteworthy since they were achieved even as we made significant investments in long-term initiatives, all in the context of an extremely difficult domestic retail environment," said Roger Farah, President and Chief Operating Officer.

"The likelihood that the consumer will continue to face significant challenges in the year ahead is not something that we can control. Nevertheless, I remain confident in the relevance of our strategy and our portfolio of brands, the dedication of our talented team, the strength of our balance sheet and our ability to continue to generate excellent returns for our shareholders over the long term."

Fourth Quarter and Full Year Fiscal 2008 Income Statement Review:
Net Revenues. Net revenues for the fourth quarter increased 20% to $1.24 billion, compared to $1.03 billion for the comparable prior year period.Excluding the impact of recent non-comp acquisitions (Impact 21 Co Ltd (Impact 21), a former Japanese sub-licensee and the remaining interest in Polo Ralph Lauren Japan Corporation as well as New Campaign Inc (New Campaign), the Company's former small leathergoods licensee in the U.S.), fourth quarter net revenues increased 14%.

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