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Published
Nov 5, 2015
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Ralph Lauren reports better than expected Q2 results

Published
Nov 5, 2015

Ralph Lauren Corporation on Thursday announced the financial results, which were better-than-expected, for its second quarter of fiscal 2016.


Ralph Lauren - Pixel Formula

 
Net revenue for Q2 2016 decreased to $2.0 billion, a 1% decrease from the previous year’s comparable period, but it increased 4% on a constant currency basis. Retail and wholesale sales also increased on a constant currency basis by 3% and 5%, respectively.
 
Net income for the quarter was $184 million and the gross profit was $1.1 billion. Licensing revenues were $47 million, which was 7% higher than the prior year period on a constant currency basis.

“I am pleased that the Company is beginning to benefit from our recent strategic initiatives and investments,” said Ralph Lauren, Executive Chairman and Chief Creative Officer. “We achieved several critical goals, including the worldwide launch of Polo Sport, implementation of the new global brand structure, and strong growth in our international businesses during the quarter. I am confident that our key strategic initiatives will drive continued growth and create significant shareholder value over the long term.”
 
The company ended the quarter with $1.1 billion in cash and investments compared to $1.2 billion in the previous year. The second quarter inventory increased to $1.4 billion from $1.3 billion and is reflected by new businesses and new store openings.
 
Ralph Lauren Corporation expects consolidated net revenue for Q3 2016 to be up 0-2% and for fiscal 2016 to be flat.

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