Polo Ralph Lauren Reports Second Quarter Fiscal 2010 Results
Second Quarter Revenues Were $1.4 billion
Second Quarter Diluted EPS Increased 11% to $1.75
The Company Updates Its Fiscal 2010 Outlook
NEW YORK--(BUSINESS WIRE)--Nov. 3, 2009-- Polo Ralph Lauren Corporation (NYSE:RL) today reported net income of $178 million, or $1.75 per diluted share, for the second quarter of Fiscal 2010, compared to net income of $161 million, or $1.58 per diluted share, for the second quarter of Fiscal 2009.

Net income for the first six months of Fiscal 2010 declined 1% to $254 million from $256 million in the comparable period last fiscal year. Net income per diluted share of $2.51 in the first six months of Fiscal 2010 was equivalent to the prior year period.

"Today’s results confirm the resilience and vitality of our strategy and demonstrate the superb execution of our management team," said Ralph Lauren, Chairman and Chief Executive Officer. "We continue to invest in our competitive advantages in design and marketing and to grow our presence around the world, which is helping to mitigate sustained market challenges. We are operating today as a leaner, stronger organization than ever before, even as our long-term growth prospects remain compelling," Mr. Lauren added.

"Our results have exceeded our expectations for the first half of the year, reflecting market share gains across products and regions and disciplined operational management," said Roger Farah, President and Chief Operating Officer. "In the back half of Fiscal 2010, we will continue to invest in high growth international markets and exciting new product categories, both critical components of our long-term strategic objectives. We are raising our sales expectations for the remainder of the year, but we continue to be cautious with our outlook and are planning accordingly. Nevertheless, our global teams are engaged to read and react to evolving market trends as we have done successfully in the first half of the year."

Second Quarter and First Half Fiscal 2010 Income Statement Review

Net Revenues. Net revenues for the second quarter of Fiscal 2010 were $1.4 billion, 4% below net revenues for the comparable period last year. The decline in net revenues primarily reflects lower domestic wholesale sales, a reduction in same-store sales at the Company’s retail segment and an approximate 1% net unfavorable effect of foreign currency translation that more than offset the wholesale contribution of formerly licensed childrenswear and golf apparel products in Japan and low single-digit constant currency growth in Europe.

First half net revenues were $2.4 billion, 6% below the comparable period of Fiscal 2009. The decline in net revenues is primarily attributable to lower domestic wholesale revenues, a reduction in same-store sales at the Company’s retail segment and an approximate 1% net unfavorable effect of foreign currency translation that more than offset the wholesale contribution of formerly licensed childrenswear and golf apparel products in Japan and low single-digit constant currency growth in Europe.

Wholesale Sales. Wholesale sales of $815 million were 4% below the prior year period. Lower global shipment volumes and the net unfavorable effect of foreign currency translation more than offset the incremental benefit of formerly licensed childrenswear and golf apparel products in Japan.

For the first six months of

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