Ralph Lauren fiscal first quarter net income declines by 10%
Ralph Lauren Corp. confirmed that for the first quarter its profit decreased to $162 million, or $1.80 per share, from $181 million, or $1.94 per share, in the same quarter a year ago. Revenue climbed 3.3 percent to $1.71 billion from $1.65 billion in the same quarter a year ago, and missed Wall Street forecasts.
Ralph Lauren ended the first quarter of Fiscal 2015 with 436 directly operated stores, comprised of 140 Ralph Lauren stores, 61 Club Monaco stores and 235 Polo factory stores. The Company also operated 503 concession shop locations worldwide at the end of the first quarter. In addition to directly operated locations, international licensing partners operated 65 Ralph Lauren stores and 17 dedicated shops, as well as 110 Club Monaco stores and shops at the end of the first quarter.
Wholesale segment sales were $708 million in the first quarter of Fiscal 2015, 4% below the prior year period. Retail sales rose 9% to $960 million in the first quarter, reflecting the incremental contribution from new stores and double-digit growth in international markets and e-commerce
In the second quarter of Fiscal 2015, Ralph Lauren Corp. expects consolidated net revenues to increase by 4%-6%, led by retail segment growth. Operating margin for the second quarter of Fiscal 2015 is expected to be approximately 200-250 basis points below the comparable prior year period.
“Our first quarter results demonstrate that we are making the right strategic decisions and investments to support our long-term growth objectives,” said Ralph Lauren, Chairman and CEO. “Later this month, we’ll mark an important milestone for the Polo brand with the introduction of Polo for women. That launch will be supported by the opening of our first Polo flagship store in New York City. This Fall, we’ll open a 20,000-square-foot Ralph Lauren luxury flagship store in Greater China, a critical brand expression in an important market for us. As exciting as these first steps are now, the long-term potential is even more compelling.”