New label for Ralph Lauren

This autumn Polo launches a new women's sportswear label called Blue Label in Europe and the US. This way the company hopes to reverse it's declining sales and profit trend. Blue Label replaces the Polo Sport collection which was discontinued with this year's spring/summer season, and will retail at lower prices than Black Label products.

Ralph Lauren reported a heavy decline in first-quarter profit this year, but said it was "confident to deliver profitable growth in the coming year". In
the three months to 30 June 2002, net profit plunged 79.2 per cent to $ 6.5m (EUR 6.6m) from $ 31.1m in the year-earlier period. Total sales declined by 9.3 per cent to $ 467m. Wholesale was hardest hit with sales declining to $ 187m from $ 245m.

According to the New York-based company, the results included a rule change regarding the consolidation of the accounts of its European business. Excluding this change, sales and net profit would have declined by 1 and 58 per cent respectively.

Designer and company owner Ralph Lauren sees strong growth potential for the brand in Europe, where the company generates some 9.8 per cent of total wholesale revenues. Sales at the company's domestic and international stores rose by 5.5 per cent to $ 227m in the period.

www.polo.com
08-08-02

Polo Ralph Lauren sees weaker results

Polo Ralph Lauren has warned that fiscal second-quarter and full-year earnings will fall short of previous estimates. The New York-based fashion house blamed weak consumer spending amid economic uncertainty and the fallout from the September 11 terrorist attacks.

Polo Ralph Lauren Corporation (NYSE: RL) provided the following Earnings Per Share ("EPS") guidance for the second fiscal quarter ended September 29, 2001 and for the fiscal year ending March 30, 2002.

The impact of the September 11th tragedy and the resulting economic down turn have negatively affected the performance of both full-price retail stores and department store customers' business. As a result, the Company now expects to report EPS in the range of $0.50 - $0.54, which is down slightly from previous guidance of $0.54 - $0.58. Prior to the events of September 11th, the Company anticipated meeting its previous guidance.

Also in response to ongoing economic uncertainty, Polo Ralph Lauren is assuming a more conservative outlook for the remainder of Fiscal 2002. As a result, the Company is planning for a 2-3% increase in overall annual sales and, as such, is expecting to report Fiscal 2002 EPS in the range of $1.65 - $1.75 for Fiscal 2002.

"Clearly, the events of Sept. 11th have forced every American to re-evaluate his or her priorities, with one of the results being much more guarded discretionary spending," said Ralph Lauren, Chairman and Chief Executive Officer. "Furthermore, our country's current situation has created ongoing uncertainty among consumers. In light of our customers' restraint, we must adjust our expectations to better reflect both their current and foreseeable spending."

"Despite the near term uncertainty, we will continue to implement our long-term strategies," continued Mr. Lauren. "We have one of the most experienced and proven management teams in the industry and, most importantly, one of the strongest and most resilient collections of global brands. Inevitably, the economy will recover and with the initiatives we have taken over the past year - accelerating our international expansion, focusing on luxury merchandising, realigning our management team and increasing our operating efficiency - we are poised to excel."

Commenting on the balance of the year, Roger Farah, president and chief operating officer, said, "We have all become more apprehensive, both economically and emotionally, over the uncertainties we now face in our every day lives. Therefore, forecasting precise business trends is very difficult. We had planned our business conservatively this year, and we will continue with that plan over the next six to 12 months.

"We have already implemented initiatives to help offset a more modest sales forecast and ongoing gross margin pressures. We are executing our tax strategy that reduces our rate by one percent, we are tightening our inventory levels and we are undertaking appropriate expense management measures. In addition, we began this fiscal year with 12% less debt than the prior year, which has reduced our interest expense. Our balance sheet remains healthy with reduced debt and strong cash flow," said Mr. Farah. "Our goal remains to produce year-over-year earnings growth while continuing to build the company's business for the long term. I believe our revised expectations support our focused business plan and strategy for future growth," Mr. Farah concluded.

Polo Ralph Lauren will release detailed results for its second fiscal quarter ended September 29, 2001 shortly after close of market on Tuesday, November 6, 2001. The Company also will host a conference call at approximately 5 p.m. to discuss its performance during its second fiscal quarter. To access the conference call, listeners should dial in by 4:45 P.M. Eastern on November 6, 2001 and request to be connected to the Polo Ralph Lauren Second Quarter Fiscal Year 2002 conference call. The domestic call-in number is 1-888-209-3791. For international participants, the number is 1-212-271-4781. Alternatively, individuals are invited to listen to a live online broadcast of the conference call by accessing the investor relations page through http://investor.polo.com on the Internet. A telephone replay of the call will be available from 7:30 P.M. Eastern, Tuesday, November 6, 2001 through 7:30 P.M. Eastern, Thursday, November 8, 2001 by dialing 1-800-633-8284 for domestic callers and 1-858-812-6440 for international callers. All callers will need to enter reservation number 19854871. An online archive of the broadcast will also be available through 7:30 P.M Eastern, Thursday, November 8, 2001.

Polo Ralph Lauren Corporation is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. For more than 30 years, Polo's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company's brand names, which include "Polo", "Polo by Ralph Lauren", "Polo Sport", "Ralph Lauren", "RALPH", "Lauren", "Polo Jeans Co.", "Chaps", and "Club Monaco" among others, constitute one of the world's most widely recognized families of consumer brands.

Certain statements including, without limitation, the statements made by Ralph Lauren and Roger Farah and the statements relating to the earnings outlook for fiscal 2002 contained herein constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations and involve certain risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to materially differ are the following: risks associated with implementing the Company's plans to enhance its worldwide luxury retail business, inventory management program and operating efficiency initiatives; risks associated with changes in the competitive marketplace, including the introduction of new products or pricing changes by the Company's competitors; changes in global economic conditions; risks associated with the Company's dependence on sales to a limited number of large department store customers, including risks related to extending credit to customers; risks associated with the Company's dependence on its licensing partners for a substantial portion of its net income and risks associated with a lack of operational and financial control over licensed businesses; risks associated with consolidations, restructurings and other ownership changes in the retail industry; risks associated with competition in the segments of the fashion and consumer product industries in which the Company operates, including the Company's ability to shape, stimulate and respond to changing consumer tastes and demands by producing attractive products, brands and marketing, and its ability to remain competitive in the areas of quality and price; risks associated with uncertainty relating to the Company's ability to implement its growth strategies; risks associated with the Company's entry into new markets either through internal development activities or through acquisitions; risks associated with the possible adverse impact of the Company's unaffiliated manufacturers' inability to manufacture in a timely manner, to meet quality standards or to use acceptable labor practices and other factors detailed in the filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

www.polo.com
Comtexnews.net
NEW YORK, Oct 22, 2001 Polo Ralph Lauren (NYSE:RL)

Anticipates Reporting Second Quarter EPS of $0.50 - $0.54 on Nov. 6th

Sees Fiscal Year 2002 EPS of $1.65 - $1.75