UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) November 3, 2004
POLO RALPH LAUREN CORPORATION
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(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
001-13057 13-2622036
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(Commission File Number) (IRS Employer Identification No.)
650 MADISON AVENUE, NEW YORK, NEW YORK 10022
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(Address of Principal Executive Offices) (Zip Code)
(212) 318-7000
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (SEE General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On November 3, 2004, Polo Ralph Lauren Corporation (the "Company")
reported its results of operations for its fiscal quarter ended October 2, 2004.
A copy of the press release issued by the Company concerning the foregoing
results is furnished herewith as Exhibit 99.1 and is incorporated herein by
reference.
The information in this Form 8-K, including the accompanying exhibit,
is being furnished under Item 2.02 and shall not be deemed to be "filed" for the
purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange
Act"), or otherwise subject to the liability of such section, nor shall such
information be deemed incorporated by reference in any filing under the
Securities Act of 1933 or the Exchange Act, regardless of the general
incorporation language of such filing, except as shall be expressly set forth by
specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired.
Not applicable
(b) Pro forma financial information.
Not applicable
(c) Exhibits.
EXHIBIT NO. DESCRIPTION
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99.1 Press release, dated November 3, 2004
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
POLO RALPH LAUREN CORPORATION
Date: November 3, 2004 By: /s/ Gerald M. Chaney
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Name: Gerald M. Chaney
Title: Senior Vice President of Finance
and Chief Financial Officer
EXHIBIT INDEX
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99.1 Press release, dated November 3, 2004
EXHIBIT 99.1
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650 Madison Avenue [GRAPHIC OMITTED]
New York, New York 10022 [LOGO - POLO RALPH LAUREN]
Press Release
Investor Contact: Denise Gillen 212.318.7516
Media Contact: Nancy Murray 212.813.7862
Polo Ralph Lauren Reports Second Quarter Fiscal 2005 Results
Second Quarter Operating Profit Increased 49%; Revenues Up 25% Driven by Lauren
by Ralph Lauren Women's Line and Childrenswear; Operating Margins Increased 230
Basis Points
Company Confirms EPS Outlook for Fiscal Year 2005 in Range of $2.35 to $2.45
New York (November 3, 2004) - Polo Ralph Lauren Corporation (NYSE: RL) today
reported net income of $80.4 million, or $0.78 per diluted share, for the second
quarter of Fiscal 2005 compared to net income of $54.0 million, or $0.54 per
diluted share, for the second quarter of Fiscal 2004.
Adjusted net income was $79.0 million, or $0.76 per diluted share, for the
second quarter of Fiscal 2005 compared to $52.9 million, or $0.52 per diluted
share, for the second quarter of Fiscal 2004. Adjusted results exclude
restructuring charges and foreign currency gains resulting from certain
transactions in our European operations. For a full analysis of the adjustments,
please refer to the table reconciliation of GAAP results to adjusted results.
For the first half of Fiscal 2005, reported net income increased 59% to $93.8
million, or $0.91 per diluted share, compared to $59.1 million, or $0.59 per
diluted share, in the first half of Fiscal 2004. Adjusted net income was $93.0
million, or $0.90 per diluted share in the first half of Fiscal 2005 compared to
$56.5 million, or $0.56 per diluted share in the first half of Fiscal 2004.
"I am pleased with the excitement about our brand and the growing global demand
for our products. Through our retail business, we have taken strong steps to
expand our luxury position. In September, we opened a flagship store in Milan on
Via Montenapoleone establishing a new level of sophistication and glamour. We
have always had a strong men's business in Italy and now our women's Collection
and accessories have made a tremendous impact," said Ralph Lauren, Chairman and
Chief Executive Officer, adding, "we have set the tone for our European business
and we did it in the most fashionable city on the continent."
"Last week we launched our new brand, Rugby, in the United States adding another
whole new dimension. I have been thinking about a younger customer for several
years. Rugby is cooler, hipper and has an attitude. It captures my point of view
about heritage and sensibility. It's the new Polo," Mr. Lauren said. "This new
success originates from our own creativity. We are forward thinking in our
retail and we
have shown our ability to grow within our brands adding new
worlds. With the addition of childrens, both at wholesale and retail, we can
really take the customer through all ages and sizes."
"We are well positioned to execute our global growth strategy. As we expand, we
continue to carefully manage our brands to ensure that their integrity and
positioning is appropriately maintained," said Roger Farah, President and Chief
Operating Officer. "Our investments in building a strong global platform will be
a significant competitive advantage, improving our efficiency and consistency as
we continue our domestic and international expansion. These investments in both
capital and people are already driving improvements in our wholesale businesses,
especially in Europe. And our Lauren by Ralph Lauren and childrenswear
businesses are also benefiting. At the same time we continue to improve our
specialty retail business where we have seen significant margin improvement in
the first half of the year."
RECENT ACHIEVEMENTS
o We completed the acquisition and successful integration of RL
Childrenswear LLC, our former licensee for childrenswear in the United
States, Canada and Mexico. We expect Fiscal 2006 revenues to be more
than $200 million, with earnings per share to be accretive in the range
of $0.15 to $0.20 in Fiscal 2006.
o Comparable retail store sales increased 3.7% overall, with a 20 basis
point improvement in operating margins. Comparable retail store sales
increased 14.2% at Ralph Lauren stores, 4.4% at Club Monaco stores, and
0.2% in our outlet stores. Our store expansion plan is on track with
the opening of our Milan flagship store in September, and one Ralph
Lauren store and six Club Monaco stores in the United States in the
second quarter of Fiscal 2005 and we plan to open six Ralph Lauren
stores and three Club Monaco stores in the third quarter of Fiscal
2005. In October we opened our Rugby store in Boston, a new concept
store with a full lifestyle collection targeting 18 to 25 year old men
and women customers.
o We have a strong balance sheet and continue to make excellent progress
in managing our inventory levels. At the end of the second quarter,
inventory was $444.2 million, including the women's Lauren by Ralph
Lauren line and childrenswear, compared to $400.7 million at the end of
the second quarter last year. We generated a 30% sales increase in
wholesale and retail in the second quarter with only an 11% increase in
inventory levels due to the inclusion of Lauren and childrenswear. Our
inventory turnover improved to 3.6x compared to 3.2x at the end of the
second quarter last year.
o In October we expanded and extended our existing bank credit facility
by entering into a new five-year credit agreement with an expanded
syndicate of banks. The new credit agreement, which is substantially on
the same terms as the prior credit agreement, increased our revolving
line of credit to $450 million, subject to increase to $525 million.
The facility is available for direct borrowings and the issuance of
letters of credit.
o We added to our executive talent when Jacki Nemerov joined the Company
in September as Executive Vice President. Jacki has responsibility for
the management of our men's, women's and children's wholesales brands,
licensed apparel and accessories, and manufacturing.
SECOND QUARTER INCOME STATEMENT REVIEW
NET REVENUES Net revenues for the second quarter increased 24.9% to $883.7
million compared to $707.8 million in the second quarter last year. Retail sales
grew 7.4% to $319.0 million compared to $297.1 million last year, with
comparable store sales up 3.7%, primarily driven by our Ralph Lauren stores in
the United States and Europe. Our wholesale revenues were $502.6 million, up
49.5% over last year, driven by the inclusion of the women's Lauren by Ralph
Lauren line and childrenswear in our wholesale segment and increased sales in
our European business. Wholesale revenues also reflect a decrease in menswear,
as we continue to reposition the Polo brand into more selective department and
specialty stores. Licensing revenues decreased, as planned, due to the absence
of royalty income from the previously licensed women's Lauren by Ralph Lauren
and childrenswear businesses. The increase in Fiscal 2005 net revenues also
reflects the favorable impact of the strengthening Euro to dollar exchange rate.
GROSS PROFIT For the second quarter, gross profit was $437.8 million, an
increase of $87.2 million, or 24.9%, compared to $350.6 million in the second
quarter of Fiscal 2004. The increased gross profit was generated primarily by
the addition of the women's Lauren by Ralph Lauren line and childrenswear, as
well as our European wholesale business. The gross margin rate improved in our
specialty retail segment and in our domestic and European wholesale businesses.
At 49.5%, our overall gross margin was unchanged from last year, reflecting the
above-mentioned reduction in licensing revenue and increase of wholesale versus
retail business mix. The increase in Fiscal 2005 gross profit also reflects the
favorable impact of the strengthening Euro to dollar exchange rate.
SG&A EXPENSES Operating expenses as a percent of revenues were 35.4% this year
compared to 37.8% last year. In the second quarter, SG&A expenses were $313.2
million, an increase of $45.6 million or 17.0%, compared to $267.6 million in
the second quarter of Fiscal 2004. The rate improvement was achieved by improved
infrastructure leverage as well as benefits from our European consolidation. The
dollar increase was driven primarily by the change in business mix as a result
of expenses associated with the operations of the women's Lauren by Ralph Lauren
line and childrenswear and also reflects the unfavorable impact of the
strengthening Euro to dollar exchange rate.
SECOND QUARTER FOREIGN CURRENCY GAINS AND RESTRUCTURING CHARGES
Adjusted results exclude $3.1 million and $1.8 million in foreign currency gains
related to certain balance sheet transactions and unhedged inventory purchases
in our European operations in the second quarter of Fiscal 2005 and Fiscal 2004,
respectively. Adjusted Fiscal 2005 second quarter results also exclude
restructuring charges of $0.9 million related to operational consolidation
efforts in Europe primarily associated with severance costs. Management believes
that the presentation of results adjusted to exclude these items provides
investors with useful information regarding the Company's core business results.
STORE COUNT
At the end of the second quarter, we operated 270 stores, with 1.92 million
square feet, compared to 265 stores, with 1.88 million square feet, at the end
of the second quarter last year. Our retail group consisted of 56 Ralph Lauren
stores, 66 Club Monaco stores, 123 Polo outlet stores, 20 Polo Jeans Co. outlet
stores, and five Club Monaco outlet stores. During the second quarter we opened
11 stores and closed three.
EARNINGS OUTLOOK
FULL YEAR
The Company reiterated that for Fiscal Year 2005 earnings per share are expected
to be in the range of $2.35 to $2.45. These projected results anticipate
high-teens percent consolidated revenue growth and approximately 120 basis
points improvement in operating margins. The Company expects revenues to reflect
mid-thirties percent growth in wholesale sales and high-single digit percent
growth in retail revenues, partially offset by a low-double digit percent
decrease in licensing revenue as a result of the elimination of the women's
Lauren by Ralph Lauren and childrenswear license royalties. The Company
reiterated that it expects the earnings results of each quarter in Fiscal 2005
to exceed the comparable quarter in Fiscal 2004 with quarterly profit flows
similar to Fiscal 2004, with the fourth quarter reflecting the smallest increase
due to the impact of a 52-week year in this fiscal year compared to a 53-week
year last year. As with the second quarter, we expect to have over 103 million
shares outstanding in the third and fourth quarters of Fiscal 2005. The Company
expects the consolidated effective tax rate for Fiscal Year 2005 to be 35.6%.
THIRD QUARTER
For the third quarter of Fiscal 2005, the Company expects consolidated revenues
to increase in the low-thirties percent range. We expect that our wholesale
revenues will increase in the mid-to-high-seventies percent range reflecting the
inclusion of women's Lauren by Ralph Lauren and childrenswear revenues in that
segment, as well as improved performance in our domestic menswear and European
businesses. Retail revenues are expected to increase in the high-single digit
percent range and licensing revenues are expected to decrease in the high-teens
percent range reflecting the absence of royalties associated with the women's
Lauren by Ralph Lauren line and childrenswear license royalties.
The Company expects operating margin expansion in both the wholesale and retail
businesses, while licensing operating profit is expected to decrease, reflecting
the absence of royalties from the women's Lauren by Ralph Lauren and
childrenswear lines. The Company expects the consolidated effective tax rate for
the third quarter of Fiscal 2005 to be 35.5%.
FOURTH QUARTER
For the fourth quarter of Fiscal 2005 the Company expects consolidated revenues
to increase in the low-single digit percent range. Although the Company expects
a slight improvement in wholesale and retail operating margins, it will be
offset by a decrease in licensing operating margin, driven by the absence of
royalties from childrenswear. The Company expects the consolidated effective tax
rate for the fourth quarter of Fiscal 2005 to be 35.5%.
CONFERENCE CALL
As previously announced, we will host a conference call and live online
broadcast today, November 3, 2004 at 9:00 A.M. Eastern. The dial-in number is
1-719-457-2680. The online broadcast is accessible at HTTP://INVESTOR.POLO.COM.
Polo Ralph Lauren Corporation is a leader in the design, marketing and
distribution of premium lifestyle products in four categories: apparel, home,
accessories and fragrances. For more than 35 years, Polo's reputation and
distinctive image have been consistently developed across an expanding number of
products, brands and international markets. The Company's brand names, which
include "Polo", "Polo by Ralph Lauren", "Ralph Lauren Purple Label", "Polo
Sport", "Ralph Lauren", "Blue Label", "Lauren by Ralph Lauren", "Rugby", "Polo
Jeans Co.", "RL", "Chaps", and "Club Monaco" among others, constitute one of the
world's most widely recognized families of consumer brands. For more
information, go to HTTP://INVESTOR.POLO.COM.
THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES
OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" CONCERNING
EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS MARGINS, EXPENSES AND EARNINGS.
ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE
FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
MATERIALLY DIFFER INCLUDE, AMONG OTHERS, CHANGES IN THE COMPETITIVE MARKETPLACE,
INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR
COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN
DISCRETIONARY CONSUMER SPENDING; RISKS ASSOCIATED WITH THE COMPANY'S DEPENDENCE
ON SALES TO A LIMITED NUMBER OF LARGE DEPARTMENT STORE CUSTOMERS, INCLUDING
RISKS RELATED TO EXTENDING CREDIT TO CUSTOMERS; RISKS ASSOCIATED WITH THE
COMPANY'S DEPENDENCE ON ITS LICENSING PARTNERS FOR A SUBSTANTIAL PORTION OF ITS
NET INCOME AND RISKS ASSOCIATED WITH A LACK OF OPERATIONAL AND FINANCIAL CONTROL
OVER LICENSED BUSINESSES; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL,
ECONOMIC AND OTHER CONDITIONS AFFECTING FOREIGN OPERATIONS OR SOURCING
(INCLUDING FOREIGN EXCHANGE FLUCTUATIONS) AND THE POSSIBLE ADVERSE IMPACT OF
CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO
THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES OR ITS ABILITY TO
SUCCESSFULLY INTEGRATE ACQUIRED BUSINESSES, AS WELL AS THE OTHER RISK FACTORS
SET FORTH IN THE COMPANY'S FORM 10-K, 10-Q AND 8-K REPORTS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO
UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR
CIRCUMSTANCES.
Attached are the Consolidated Statements of Income and Net Revenues and Income
from Operations for the six-month and three-month periods ended October 2, 2004
and September 27, 2003 and the Consolidated Balance Sheets as of October 2, 2004
and September 27, 2003.
###
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
-------------------------------
OCTOBER 2, SEPTEMBER 27,
2004 2003
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Wholesale Net Sales $ 502,563 $ 336,105
Retail Net Sales 318,978 297,136
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NET SALES 821,541 633,241
Licensing Revenue 62,139 74,536
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NET REVENUES 883,680 707,777
Cost of Goods Sold 445,925 357,211
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GROSS PROFIT 437,755 350,566
Depreciation and Amortization 23,724 19,059
Other SG&A Expenses 289,462 248,554
Restructuring Charge 897 --
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TOTAL SG&A EXPENSES 314,083 267,613
Income From Operations 123,672 82,953
Foreign Currency Gains (A) (3,145) (1,784)
Interest Expense, net 2,045 2,196
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Income Before Income Taxes and Other
Expense (Income) 124,772 82,541
Provision for Income Taxes 44,294 30,128
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Income after Tax 80,478 52,413
Other Expense (Income), net (B) 71 (1,597)
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NET INCOME $ 80,407 $ 54,010
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NET INCOME PER SHARE - BASIC $ 0.79 $ 0.55
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NET INCOME PER SHARE - DILUTED $ 0.78 $ 0.54
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Weighted Average Shares Outstanding - Basic 101,192,000 98,704,000
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Weighted Average Shares & Share Equivalents
Outstanding - Diluted 103,571,000 100,781,000
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DIVIDENDS DECLARED PER SHARE $ 0.05 $ 0.05
============= =============
(A) Fiscal 2005 consists primarily of foreign exchange gains and losses
on unhedged inventory purchases and balance sheet revaluations
related to our European subsidiaries. Fiscal 2004 consists primarily
of foreign exchange gains and losses related to unhedged inventory
purchases.
(B) Includes Equity Investment Income of $1,188 and $2,500 net of
Minority Interest Expense of $1,904 and $903 for Q2 FY05 and Q2 FY04,
respectively. Also included in Q2 FY05 is $645 of Dividend Income.
The following is a reconciliation of Net Income to Net Income Before
Restructuring Charge and Foreign Currency Gains:
THREE MONTHS ENDED
------------------------
OCTOBER 2, SEPTEMBER 27,
2004 2003
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Net Income $ 80,407 $ 54,010
Other Expense (Income), net 71 (1,597)
Provision for Income Taxes 44,294 30,128
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Income before Income Taxes and Other Expense (Income) 124,772 82,541
Restructuring Charge 897 --
Foreign Currency Gains (3,145) (1,784)
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Income Before Income Taxes, Other Expense (Income),
Restructuring Charge and Foreign Currency Gains 122,524 80,757
Provision for Income Taxes 43,496 29,476
Other Expense (Income), net 71 (1,597)
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Net Income Before Restructuring Charge and Foreign
Currency Gains $ 78,957 $ 52,878
========= ============
NET INCOME PER SHARE BEFORE RESTRUCTURING CHARGE
AND FOREIGN CURRENCY GAINS - BASIC $ 0.78 $ 0.54
========= ============
NET INCOME PER SHARE BEFORE RESTRUCTURING CHARGE
AND FOREIGN CURRENCY GAINS - DILUTED $ 0.76 $ 0.52
========= ============
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
SIX MONTHS ENDED
-------------------------------
OCTOBER 2, SEPTEMBER 27,
2004 2003
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Wholesale Net Sales $ 741,587 $ 497,730
Retail Net Sales 615,762 551,600
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NET SALES 1,357,349 1,049,330
Licensing Revenue 119,081 136,178
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NET REVENUES 1,476,430 1,185,508
Cost of Goods Sold 731,575 586,190
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GROSS PROFIT 744,855 599,318
Depreciation and Amortization 45,862 40,501
Other SG&A Expenses 553,088 470,338
Restructuring Charge 1,628 --
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TOTAL SG&A EXPENSES 600,578 510,839
Income From Operations 144,277 88,479
Foreign Currency Gains (A) (2,934) (4,083)
Interest Expense, net 3,675 5,114
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Income Before Income Taxes and Other Income 143,536 87,448
Provision for Income Taxes 51,143 31,919
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Income after Tax 92,393 55,529
Other Income, net (B) (1,417) (3,536)
------------- -------------
NET INCOME $ 93,810 $ 59,065
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NET INCOME PER SHARE - BASIC $ 0.93 $ 0.60
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NET INCOME PER SHARE - DILUTED $ 0.91 $ 0.59
============= =============
Weighted Average Shares Outstanding - Basic 100,837,000 98,541,000
============= =============
Weighted Average Shares & Share Equivalents
Outstanding - Diluted 103,186,000 100,052,000
============= =============
DIVIDENDS DECLARED PER SHARE $ 0.10 $ 0.10
============= =============
(A) Fiscal 2005 consists primarily of foreign exchange gains and losses
on unhedged inventory purchases and balance sheet revaluations
related to our European subsidiaries. Fiscal 2004 consists primarily
of foreign exchange gains and losses related to unhedged inventory
purchases and royalty payments.
(B) Includes Equity Investment Income of $3,176 and $4,450 net of
Minority Interest Expense of $2,404 and $914 for FY05 and FY04,
respectively. Also included in FY05 is $645 of Dividend Income.
The following is a reconciliation of Net Income to Net Income Before
Restructuring Charge and Foreign Currency Gains:
SIX MONTHS ENDED
-------------------------
OCTOBER 2, SEPTEMBER 27,
2004 2003
--------- ------------
Net Income $ 93,810 $ 59,065
Other Income, net (1,417) (3,536)
Provision for Income Taxes 51,143 31,919
--------- ------------
Income before Income Taxes and Other Income 143,536 87,448
Restructuring Charge 1,628 --
Foreign Currency Gains (2,934) (4,083)
--------- ------------
Income Before Income Taxes, Other Income,
Restructuring Charge and Foreign Currency Gains 142,230 83,365
Provision for Income Taxes 50,689 30,428
Other Income, net (1,417) (3,536)
--------- ------------
Net Income Before Restructuring Charge and Foreign
Currency Gains $ 92,958 $ 56,473
========= ============
NET INCOME PER SHARE BEFORE RESTRUCTURING CHARGE
AND FOREIGN CURRENCY GAINS - BASIC $ 0.92 $ 0.57
========= ============
NET INCOME PER SHARE BEFORE RESTRUCTURING CHARGE
AND FOREIGN CURRENCY GAINS - DILUTED $ 0.90 $ 0.56
========= ============
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
OCTOBER 2, SEPTEMBER 27,
2004 2003
----------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 145,982 $ 210,637
Accounts receivable, net of allowances 428,423 371,591
Inventories 444,176 400,736
Deferred tax assets 22,269 23,430
Prepaid expenses and other 71,232 106,114
----------- ------------
1,112,082 1,112,508
Property and equipment, net 443,560 357,924
Deferred tax assets 60,997 54,386
Goodwill, net 579,216 329,003
Intangibles, net 19,028 10,823
Other assets 184,688 171,180
----------- -----------
$ 2,399,571 $ 2,035,824
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 160,747 $ 162,869
Income taxes payable 80,204 58,619
Deferred tax liabilities 1,821 --
Accrued expenses and other 245,239 208,958
----------- -----------
488,011 430,446
Long-term debt 280,948 264,025
Other noncurrent liabilities 90,247 69,968
Stockholders' equity
Common Stock 1,073 1,040
Additional paid-in-capital 619,872 530,652
Retained earnings 1,009,740 825,514
Treasury Stock, Class A, at cost (4,177,600
and 4,137,820 shares) (80,026) (78,737)
Accumulated other comprehensive income (loss) 26,579 10,194
Unearned compensation (36,873) (17,278)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 1,540,365 1,271,385
----------- -----------
$ 2,399,571 $ 2,035,824
=========== ===========
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES
NET REVENUES AND INCOME FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
The net revenues and income from operations for the periods ended October 2,
2004 and September 27, 2003 for each segment were as follows:
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
OCTOBER 2, SEPTEMBER 27, OCTOBER 2, SEPTEMBER 27,
2004 2003 2004 2003
----------- ------------ ----------- ------------
Net revenues:
Wholesale $ 502,563 $ 336,105 $ 741,587 $ 497,730
Retail 318,978 297,136 615,762 551,600
Licensing 62,139 74,536 119,081 136,178
----------- ------------ ----------- ------------
$ 883,680 $ 707,777 $ 1,476,430 $ 1,185,508
=========== ============ =========== ============
Income (Loss) from operations:
Wholesale $ 81,512 $ 25,459 $ 62,913 $ (5,590)
Retail 23,172 21,075 51,546 32,321
Licensing 19,885 36,419 31,446 61,748
----------- ------------ ----------- ------------
$ 124,569 $ 82,953 $ 145,905 $ 88,479
Less: Unallocated Restructuring Charge 897 -- 1,628 --
----------- ------------ ----------- ------------
123,672 82,953 $ 144,277 $ 88,479
=========== ============ =========== ============