NEW YORK, Aug. 4 /PRNewswire/ -- Polo Ralph Lauren Corporation (NYSE: RL) today reported record financial results for its first quarter fiscal 1999, the period ended June 27, 1998.

First Quarter Results

Net revenues were $358.8 million in the first quarter of fiscal 1999 compared to $289.7 million in the first quarter of last year, representing an increase of 24%.

Net income reached $22.7 million in the first quarter of fiscal 1999, an increase of 32% from $17.2 million in the same period a year ago.

Basic and diluted earnings per share rose to $0.23 for the first quarter of fiscal 1999 from $0.17 in the first quarter of last year.

The results for the quarter ended June 28, 1997 include pro forma adjustments related to the initial public offering, completed in June 1997, and other adjustments described further below.

"We are pleased with the strong performance we achieved in the first quarter and view it as a solid start for the fiscal year. Underscoring the strength of the quarter is the fact that each of our core businesses achieved record revenues," said Ralph Lauren, Chairman of the Board and Chief Executive Officer.

Operating Highlights

Michael J. Newman, Vice Chairman and Chief Operating Officer commented, "Polo Ralph Lauren's Wholesale business, including Menswear and Womenswear, had excellent first quarter results, with net sales increasing 31% to $170.0 million. This strength should continue into the balance of fiscal 1999 as the combined backlog in our Mens and Womens Wholesale operation for Fall and now into Holiday 1998 is up 13%.

"The Licensing business generated a 33% increase in revenue during the first quarter to $43.3 million. Product, Home and International each produced results better than our plans. Continued exceptional performance came from our Lauren Women's Line as well as Chaps, and the Polo Jeans lines.

"Japan produced solid revenue growth in the quarter. We continue to roll-out our successful U.S. products into international markets at a strong pace. In this first quarter, we penetrated into new territories with the opening of several stores in the Gulf region and Israel, bringing our presence in countries outside the United States to over 60.

"Sales generated by our Retail operation rose 13% in the first quarter to $141.2 million. We expect an increase to this rate of growth over the next three quarters as we continue our retail expansion with the opening of flagships in Chicago and London, along with stores offering a full range of our products, and Jeans stores.

"Based on ongoing strong demand for our products both in the United States and in countries throughout the world, we are confident that we will continue to meet our financial goals, " Mr. Newman said.

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 30 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", "Polo Sport", "Ralph Lauren", "RALPH", "Lauren", "Polo Jeans Company", and "Chaps", among others, constitute one of the world's most widely recognized families of consumer brands.

The following table provides selected Balance Sheet information as of June 27, 1998 and June 28, 1997.

                        POLO RALPH LAUREN CORPORATION
                        Selected Financial Information
                              Balance Sheet Data
                                (in millions)

                                             June 27, 1998      June 28, 1997

    Inventories                                      $ 358              $ 292
    Accounts Receivable, net                         $ 112              $  90

Certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1996. These forward-looking statements are based largely on the Company's expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statement. Those risks include, among others, risks associated with changes in the competitive marketplace, including the introduction of new products or pricing changes by the Company's competitors, changes in global economic conditions and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Attached are the Consolidated Statements of Income for the quarters ended June 27, 1998 and June 28, 1997. The Consolidated Statements of Income are presented on a historical basis for the period ended June 27, 1998 and on a pro forma basis for the period ended June 28, 1997.

The Pro Forma Consolidated Statement of Income presents the effects on the historical financial statements of certain transactions as if they had occurred at the beginning of the period. This statement reflects adjustments for: (i) income taxes based upon pro forma pre-tax income as if the Company had been subject to additional Federal, state and local income taxes, calculated using a pro forma effective tax rate of approximately 41% and (ii) a reduction in interest costs from the application of a portion of the net proceeds from Polo's initial public offering completed in June 1997 to outstanding indebtedness.

                        POLO RALPH LAUREN CORPORATION
                      Consolidated Statements of Income
                    (in thousands, except per share data)
                                 (unaudited)

                                                          Three Months Ended
                                                         June 27,     June 28,
                                                            1998         1997*
                                                                     Pro Forma

    Net sales                                          $ 311,155    $ 255,412
    Licensing revenue                                     43,283       32,532
    Other income                                           4,338        1,706

    Net revenues                                         358,776      289,650
    Cost of goods sold                                   176,162      142,998

    Gross profit                                         182,614      146,652

    Selling, general and administrative expenses         144,963      117,908

    Income from operations                                37,651       28,744

    Interest income                                          680          401

    Income before income taxes                            38,331       29,145

    Provision for income taxes                            15,620       11,949

    Net income                                         $  22,711    $  17,196

    Historical and pro forma net income per share
     - Basic and Diluted                               $    0.23    $    0.17

    Historical and pro forma common shares
     outstanding - Basic                             100,195,134  100,222,444

    Historical and pro forma common shares
     outstanding - Diluted                           100,570,710  100,222,444

    * Reclassified for comparative purposes.

SOURCE  Polo Ralph Lauren Corporation