Polo raises forecast as sales rise
05 August 2010 09:35
Polo Ralph Lauren has seen first quarter earnings soar by 57% as sales and margins strengthened. Building on better-than-expected sales growth in the latest quarter, the company raised its revenue growth guidance for the year to the mid to high single digits from its May projection for revenue growth in the mid single digits.
For the quarter to July 3rd, the company reported a profit of $120.8 million up from $76.8 million a year earlier on revenue up by 13% to $1.15 billion.
Gross margin growth was boosted by tight cost controls, inventory management and improved product mix.
Retail sales grew 16%, driven by new Asian stores and concession shops. Same store sales rose by 7%, offsetting a 2% decline at Ralph Lauren stores while sales rose by 25% increase at Club Monaco.
Wholesale sales rose by 11%, boosted by double digit shipment growth in the US.
"Our strong results reflect our ongoing commitment to elevating our brand and our relentless focus on product innovation," said Ralph Lauren, chairman and chief executive officer.
"Our company is operating on a whole new level with increased control of our business across product categories and around the world. We are in a position to accelerate the growth of the World of Ralph Lauren through exciting new merchandise categories and strategic store openings. The passion, creativity and discipline of our organization are now being leveraged on a growing global scale."
"Our first quarter results are outstanding by any measure," said Roger Farah, president and chief operating officer.
"The broad-based strength we've achieved across regions, product categories and channels is testimony to the growing appeal of our brands and the discipline of our global teams, particularly as we continue to reinvest heavily back into the business. We are excited about the incremental opportunities that lie ahead for us. With the assumption of our South Korean operations later this fiscal year, we are in a position to execute a fully integrated Asian growth strategy we've been planning for several years. Even though global market conditions remain uncertain, we are continuing our commitment to our strategic growth initiatives while navigating through near-term uncertainty in order to deliver compelling shareholder value over the long term."
Retail news is updated every weekday and is provided courtesy of: 
