Polo Ralph Lauren sales and profits fall
Polo Ralph Lauren has notched up first quarter sales of $1bn (£588.6m), an 8% fall on the same period last year.
The US premium brand revealed that net profits fell 19% to $77m (£45.3m) during the quarter to June 27, versus $95m (£55.9m) during the first quarter the year before.
The fall in sales reflects lower domestic wholesale sales, a drop in retail like-for-likes and the impact of currency fluctuations.
Polo Ralph Lauren took a 2% hit from the unfavourable foreign currency translations, which it said “more than” offset the wholesale contribution of formerly licensed childrenswear and golf clothing in Japan and high single digit constant currency growth in Europe.
Wholesale sales dropped 10% to $520m (£306.2m) and retail sales fell 6% to $463m (£272.6m). Comparable store sales, which now also include RalphLauren.com, slumped 9%, reflecting discounting of 25% at Ralph Lauren stores, 4% at factory stores and 15% at Club Monaco stortes. RalphLauren.com reported a 14% sales uplift during the quarter.
First quarter licensing royalties were $41m (£24.1m), representing a 12% fall back year-on-year. The decline was largely due to the takeover of the Japanese childrenswear and golf clothing licence by the brand.
Chairman and chief executive Ralph Lauren said: “We continue to navigate well through uncertain times.
“Each of our brands has a unique channel of distribution and is focused on a specific customer, enabling us to gain market share. Regardless of the near-term economic challenges, we continue to have a clear, compelling growth trajectory ahead of us and our company has a longstanding track record of success.”