Ralph Lauren posted a net income of 162 million dollars for the first quarter of fiscal 2015 – compared with a net income of 181 million dollars for the same period of 2014.
Net revenue grew 3 per cent to 1.7 billion dollars, following double-digit increase in international markets, and retail segment sales growth.
As chairman and CEO Ralph Lauren himself said: “Our first quarter results demonstrate that we are making the right strategic decisions and investments to support our long-term growth objectives. 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.”
The company is scheduled to open a 20,000-square-foot Ralph Lauren luxury flagship store in Greater China in the autumn, which is “…. a critical brand expression in an important market for us.”, Lauren continued.
Licensing revenues gained 4% from last year in the first quarter, while gross profit shot up 4% to 1 billion dollars. Gross profit margin increased 61% and 30 basis points from the previous year.
Wholesale sales fell 4% from last year, which was put down to a change in shipment timings and the move of Chaps men’s sportswear to a wholly-owned operation. Retail sales gained 9%.
The brand finished the first quarter with 436 stores altogether, made up of 140 Ralph Lauren stores, 61 Club Monaco locations and 235 Polo factory spaces. They also operate 503 concessions globally.
Ralph Lauren expects consolidated net revenues for fiscal 2015 to grow by 6% to 8%. In the second quarter of 2015 they expect consolidated net revenue to increase by 4-6%, through retail segment growth.