Polo Ralph Laurent sees 1st quarter profit
Polo Ralph Lauren on Wednesday said its 2008 fiscal first quarter net income rose 10 percent, largely due to higher wholesale revenue.
Profit for the quarter ended June 30 came to $88.3 million, up from $80.2 million. Results include a 10 per cent loss from acquisitions and a new income tax accounting standard. Revenue rose 12 percent to $1.07 billion from $953.6 million. ?
US analysts polled by Thomson Financial expected a profit of 85 cents per share on revenue of $1.1 billion. ??
Wholesale revenue rose 17 percent, retail sales rose 9 percent and licensing revenue fell 8 percent mainly due to ending Japanese royalties associated with an acquisition of Impact 21, now part of the wholesale segment.
www.poloralphlauren.com
9 August 2007
Polo and Richemont create jewellery company
Ralph Lauren is joining forces with Swiss luxury goods firm Compagnie Financière Richemont to create a jewellery and watch company. The joint venture – Polo Ralph Lauren Watch and Jewellery Co. S.A.R.L. - will be based in Switzerland , where it will design, make and distribute luxury watches and jewellery. Starting prices for watches will be $3,000.
“I believe strongly in this partnership,” Polo chairman Ralph Lauren said of the venture in a statement. “This business is an important part of our global luxury accessories strategy. I am confident that our unique design sensibility and luxury brand-building skills, combined with Richemont's unique experience on a global basis, creates an opportune way for this partnership to succeed.” Lauren and Richemont's executive chairman Johann Rupert have been working on the creation of this company for two and a half years. The venture is new to both; Polo has never crossed over into the jewellery and watch market before and Richemont has never collaborated with a designer, instead owning design companies in their entirety.
The pair chose a joint venture, instead of a license or partnership, because of its authenticity. “I don't have licenses,” Rupert told WWD. “The question with licenses is always who is controlling the design and who has the final say.”
The watches will debut in the spring of next year in Geneva and the first products will hit stores in fall 2008. Neither company wanted to give sales projections. Meanwhile, jewellery sales are likely to begin on a smaller scale than watches. Rupert said that the category would, however, grow faster than watches, taking into account that “generally as a sector, it is growing quicker than watches.”
According to Rupert, this joint venture is a one-off and does not mean that Richemont has changed its strategy. It will continue to own luxury brand portfolios, such as Cartier, Piaget, IWC, Jaeger-le-Coultre and Baume & Mercier. In terms of the strategy for the new company, it will be positioned as a global brand with considerable growth potential in the US.
www.polo.com
www.richemont.com
6 March 2007
Ralph Lauren profit surges
Polo Ralph Lauren is going from strength to strength. The US-based fashion house posted a 31.5 percent rise in net income for the second quarter to $137 million (£71.8 million). Revenues gained 13.6 percent to $1.17 billion. “We are one of the healthiest and fastest-growing luxury businesses today,” chairman and chief executive Ralph Lauren said in a statement. “The key to our continued success is our focus, whether it is product and/or how we operate our business. And our growth comes from our commitment to consistency that stays true to a single point of view.”
During the first six months, net income soared 40.2 percent to $217.2 million on revenues up 19.2 percent to $2.12 billion. Wholesale sales rose 25.8 percent to $1.15 billion, while retail sales gained 15.1 percent to $856.7 million. In the second quarter, wholesale sales rose 14.3 percent to $659.9 million and retail sales climbed 14.8 percent to $444.6 million. Excluding the purchase of its Polo Jeans license, wholesale sales rose 6 percent. Same store sales at the Ralph Lauren brand increased 9.6 percent and gained 15.9 percent at Club Monaco stores. The company's factory stores saw same store sales rise 8.4 percent. Sales of the online Polo business gained 35 percent. Polo has raised its full-year earnings expectations and has also announced the $9 million acquisition of its belts and small leather goods licensee New Campaign.
In a conference call with analysts, president and chief operating officer Roger Farah reiterated Lauren's comment about the company's success formula. “We are very clear on who our customer is, and all of our products and all of our brands are focused on that customer and our channels of distribution are positioned to service those customers.” He also said the company is planning to add more stores within the next three to five years, notably in Europe , where it has only 13 freestanding Ralph Lauren stores. He told WWD that existing stores could be used to sell derivative merchandise.
Consolidated group revenue growth for the third quarter is expected to be in the low double digits, the company said. The growth is related to the low double digit growth of both the retail and wholesales divisions.
www.poloralphlauren.com
9 November 2006
Ralph Lauren opens in Russia
Ralph Lauren is set to open two new stores in Moscow in spring 2007. As part of its international expansion drive, the luxury retailer will open an 8,000 square foot flagship store in Tretyakoysky Passage and a second store location in the Baryikha Luxury Village . Both locations are prime luxury shopping areas, although the Tretyakoysky Passage is a traditional and historical landmark while Baryikha is a contemporary project. The latter will therefore house a more contemporary assortment within a modern setting, while the flagship at Tretykoysky Passage will offer premier assortments of Ralph Lauren's men's and women's luxury brands within the company's trademark, traditional interior. These stores are part of a joint venture between Ralph Lauren and Mercury Distribution, which has extensive experience in the luxury and fashion business in Moscow . A spokeswoman for Ralph Lauren said that there are no further openings in store for the time being “This is already a large-scale enterprise in itself,” she said. Specific opening dates must still be set.
www.poloralphlauren.com
23 October 2006
Polo Q1 earnings surge
Polo Ralph Lauren reported a surge in first quarter earnings of 58 percent to $80.2 million (£42.0 million). Revenues jumped 26.8 percent for the three months ended 1 July to $491.2 million, including a 45.7 percent gain in wholesale sales to $751.9 million and a 15.3 percent jump in retail sales to $412.1 million. Net revenues – which do not include the effect of the footwear and Polo Jeans Co acquisitions – rose 19 percent. Increased sales per square foot in the US stores, regionally adapted assortments and supply chain investments in its European operations helped boost results.
“One of the keys to our success is that we convey our passion and our clear point of view in all we do,” chairman and chief executive Ralph Lauren said in a statement. “That vision is represented in all of our brands and in every product category, whether it is men’s wear, women’s wear, children’s wear, accessories or home.” Roger Farah, president and chief operation officer, told WWD: “We’ve really had back-to-back strong results,” and added, “It is not a great (retail) environment…We had a 15.7 percent operating profit in the first quarter in a retail business people at first weren’t sure we should be in.” He told analysts that Polo is “leveraging (its) growing scale for efficiencies in transportation and logistics, where we are seeing real savings and speed to market despite the growing gas price. Obviously, that is leading to better sell-throughs, faster inventory turns and improved results.” He also said that micromanaging the business by store and location, both in the US and abroad, had “paid big” dividends for the company. All Polo’s European operations, with the exception of Spain, had enjoyed a “powerful” quarter, both in terms of retail and wholesale, Farah said.
With Europe coasting along, the company is turning its attention to its Asian businesses. Farah said that Polo has already started working with local licensing partners in an effort to become more directly involved in assortment and marketing plans. It believes that these improvements will deliver visible results for fiscal 2008 and 2009. Ultimately, the goal for the entire business is to deliver fresh products and never have too much merchandise on hand. “Our loyal customer is in our store often looking for what’s new. We look at the flow of new receipts gotten in the last 30 days that can drive the business over the next 30 days,” said Farah.
www.polo.com
9 August 2006
Ralph Lauren receives 15m bonus
Last week Polo Ralph Lauren Corp stated its Chief Executive Ralph Lauren received a $15 million bonus for the 2006 fiscal year ended March 31.
This was a 13 percent increase from his $13.26 million bonus in the previous fiscal year and Lauren was also granted restricted stock valued at $4.31 million, compared with a grant worth $3.31 million for the previous year.
His salary remained unchanged at $1 million.
The New York-based clothing company previously stated it set Lauren's 2007 fiscal year bonus target at $11 million, with a maximum possible bonus of $16.5 million if he exceeds performance goals under the company's incentive plan.
Shares of Polo Ralph Lauren more than doubled in fiscal 2006. The shares ended Friday on the New York Stock Exchange at $52.38, down 53 cents, or 1 percent on the day.
6 July 2006
Polo stops use of fur
Fashion house Polo Ralph Lauren announced on Thursday that it is removing fur from its apparel and home collections, beginning with the holiday 2006 season. In a press release, the New York based company said that fur had been used “on a limited basis as an accent in some collections.” “We are publicly announcing this decision because the use of fur has been under review internally and we feel that the time is right to take this action,” it said.
Polo's decision is the first of its kind made by a major fashion house since Calvin Klein did so in the mid-1990s. This is a major coup for PETA (People for the Ethical Treatment of Animals), which was in negotiations with the company since March. Polo Ralph Lauren has decided to donate 1,200 new units of women's wear containing fur to charitable organisations. The company would not say how much the cancelled orders would cost it.
www.polo.com
12 June 2006
Golf sponsorship Ralph Lauren
Polo Ralph Lauren said it is sponsoring the LPGA golfer Morgan Pressel, the 2005 Women's Amateur Champion and second place finalist at the 2005 Women's US Open. Pressel will wear Ralph Lauren apparel both on and off the course and will appear in Ralph Lauren Golf's advertising campaign. In addition, she will appear in online videos featuring golf and fashion tips at Polo.com.
“I am pure 100% Ralph Lauren, on and off the course and have been wearing his clothes since I was 13 years old. I have always been somebody to wear bright colours. I think that some of the Polo colours you can't find anywhere else. That's one of the things that I love,” said seventeen-year-old Pressel.
Ralph Lauren Golf Collection is available at select Ralph Lauren stores, private clubs and resorts across the nation, select specialty stores, and online.
www.polo.com
16 March 2006
Ralph Lauren partners with Wimbledon
US fashion house Polo Ralph Lauren has just entered a global partnership with Wimbledon. According to the contract, the company will become the tennis tournament's first ever official outfitter for the next five years.The agreement is a coup for Polo Ralph Lauren, who is forging ahead in the sports arena. Last year, it became the apparel sponsor for another Grand Slam event, the US Open, until 2008. And last month it began sponsoring rising LPGA golf star Morgan Pressel.
“We are definitely building up our sports marketing, but we do it our way,” David Lauren, senior vice president of advertising, marketing and corporate communications for Polo, said in an interview with WWD. “We are not Nike, nor do we want to be. The main goal is for to be integral for an event. It can never be that we are just a sponsor. We are very careful about what we do and we take our time and make sure it feels right.”
The company will be the first in the tournaments 129 year history to create all the outfits for on-court officials, including chair umpires, line umpires and ball persons.
With Wimbledon's history in mind, the designer created a range of clothing that is classic, elegant and contemporary, with navy blue and cream as the tournament's colours.
“I have long been inspired by the rich heritage and traditions of England,” said chairman and chief executive Ralph Lauren, whose ad campaigns have often recalled the lifestyle of the British aristocracy. “I am thrilled to be partnering with the All England Club/Wimbledon and playing a major role in such a historic sporting event.”
Although the company has declined to reveal details of the deal, David Lauren said that the sponsorship is costing Polo less than $10 million (£5.76 million).
The Polo Ralph Lauren Wimbledon Collection will be sold at select retail stores, including Ralph Lauren stores and online via the company website. David Lauren told WWD that this sponsorship is important for the company to build its international presence and to boost its European division. “We are working with stores such as Harrods, who will feature the collection in special in-store shops,” he said. “We are a global company and our European business is critical to our success.”
The partnership will start with this year's Championship.
www.polo.com
9 March 2006
Ralph Lauren chooses Luxottica
Luxottica has lured Ralph Lauren away from rival Safilo. The fashion house has signed a 10-year license agreement with the luxury eyewear manufacturer. As soon as Ralph Lauren's contract with Safilo ends at the end of this year, Luxottica will step in. The two Italian manufacturers battle for business in an industry where they are masters and make almost all of the world's high-end branded sunglasses under license. The switch is a big blow for Safilo, who even opened a flagship Ralph Lauren store in Manhattan , which will now be taken over by Luxottica. Furthermore, Ralph Lauren was one of Safilo's biggest sources of revenue.
“Ralph Lauren is a brand that is extremely strong in North America and in Asia and we have the opportunity to do so much more in Europe ,” Luxottica chief executive Andrea Guerra told the FT. He said that this recent deal had strengthened the company's portfolio. Ralph Lauren sunglasses generate annual sales of about €100 million (£68 million), which represents about 10 percent of Safilo's revenues. Luxottica intends to grow those sales by at least 50 percent over the next 10 years and aims for revenues of $1.75 billion (£1 billion) over the 10-year span of its contract. Luxottica paid Ralph Lauren €200 million in royalties up front, something Safilo is unable to do with is weaker balance sheet.
www.luxottica.com
28 February 2006
Polo earnings soar
Luxury goods group Polo Ralph Lauren has surpassed expectations, reporting a 21 percent rise in third quarter earnings, thanks to strong European demand for its fashion lines. Net income for the quarter rose from $75 million (£43 million) last year to $90.7 million. Net sales rose 10 percent to $995 million. The first nine months of fiscal 2006 saw net income rise to $246 million compared with $167 million the year before, as revenues climbed 15 percent to $2.78 billion.
“This is an exciting time for our company as we continue to introduce new product categories and take more direct control of our brand,” said chairman and chief executive Ralph Lauren. “The Ralph Lauren brand has never been stronger as the demand for our luxury products around the world is accelerating. We look forward to launching our footwear line this year and developing our denim business now that we have bought back Polo Jeans.”
The group completed the purchase of its Polo Jeans business on 3 February. “We remain committed to opening new retail stores around the world and are excited about our newest flagship store opening in Tokyo next month,” Lauren continued. “We believe the sound fundamentals of our business will allow us to take advantage of the growing global appeal of the Ralph Lauren brand.”
www.polo.com
8 February 2006