Polo Reports Profits and Sales Fell in 1Q

Polo Ralph Lauren Corp. (New York) announced that first quarter profits fell 79 percent as the clothing designer, manufacturer and retailer cut prices and exited two apparel lines.

Sales, including licensing revenue, fell 9.8 percent. Polo offered discounts while discontinuing the women's Ralph Lauren Sport and Lauren for Men apparel lines.

“While the overall environment remains challenging, we are continuing to strengthen our worldwide market position and are investing in our future growth,” chairman and ceo Ralph Lauren said. “Our most recent men's collection show in Europe was highly acclaimed and demonstrates the strong and growing appeal of our brand in this large market. Our women's collection continues to be well received, giving us great confidence in the much anticipated launch of our Blue Label line this fall both here and in Europe. Looking ahead, I remain confident in our ability to deliver profitable growth in the coming year. Our company is in the strongest position ever and our brands continue to thrive and grow.”

“We are . . . pleased with the better-than-planned results in our retail business,” said president and coo Roger Farah. “The strength of our world-class brands and the progress we have made in our operational efficiencies resulted in positive same-store comparisons and a 380 basis point increase over last year's pro forma operating margins. We expect to see continued improvements in our retail business throughout the year, and we are on track to make meaningful progress over the next two to three years toward our longer-term goal of producing 8-10 percent retail operating margins. ” The firm operates about 230 retail and outlet stores in the U.S. and licenses more than 100 others worldwide.