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 5, 2003 POLO RALPH LAUREN CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 001-13057 13-2622036 - ------------------------------- ---------------- ------------- (State or other jurisdiction of (Commission File (IRS Employer incorporation) Number) Identification No.) 650 MADISON AVENUE, NEW YORK, NEW YORK 10022 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 318-7000 -------------- NOT APPLICABLE ------------------------------------------------------------- (Former name or former address, if changed since last report)2 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On November 5, 2003, the Registrant reported its results of operations for its fiscal quarter ended September 27, 2003. A copy of the press release issued by the Registrant 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 12 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.
3 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 By: /s/ Gerald M. Chaney -------------------------------------------- Name: Gerald M. Chaney Title: Senior Vice President of Finance and Chief Financial Officer Date: November 5, 2003
INDEX TO EXHIBITS EXHIBIT NUMBER DESCRIPTION - ------ ----------- 99.1 Press Release of Polo Ralph Lauren Corporation, dated November 5, 2003.
EXHIBIT 99.1 ------------ Media Contact: Nancy Murray 212-813-7862 Investor Contact: Denise Gillen 212-318-7516 POLO RALPH LAUREN REPORTS SECOND QUARTER FISCAL 2004 RESULTS Revenue Increase Driven by 8.3% Positive Comps in Retail Lauren Line on Schedule for Spring Shipments Company Reiterates Fiscal Year Guidance New York, NY (November 5, 2003) - Polo Ralph Lauren Corporation (NYSE: RL) today reported adjusted net income of $52.9 million, or $0.52 per diluted share, for the second quarter of Fiscal 2004 ended September 27, 2003, compared to adjusted net income of $51.9 million, or $0.52 per diluted share, for the comparable year-ago quarter. Second quarter Fiscal 2004 net income under Generally Accepted Accounting Principles ("GAAP") was $54.0 million, or $0.54 per diluted share, compared to net income of $51.7 million, or $0.52 per diluted share, for the second quarter of Fiscal 2003. For the Fiscal 2004 and Fiscal 2003 quarters, the results are adjusted to exclude foreign currency gains and losses resulting from certain balance sheet transactions. The Company believes that these adjusted results provide a meaningful comparison of its ongoing operational and financial results. For a full analysis of the adjustments, please refer to the table reconciliation of GAAP results to adjusted results. "We are pleased with our second quarter results, particularly with our strong retail performance. Our powerful combination of exciting products and advertising and targeted marketing is generating more profitable growth from our stores," said Ralph Lauren, Chairman and Chief Executive Officer. "We have significantly strengthened our management team with several additions both domestically and internationally. Our organization has never been stronger and we have the right team in place to continue to drive our long-term growth strategies." "Looking toward the second half of our year, we are well positioned for the holiday season and are expecting another strong performance for the balance of the year," Mr. Lauren added. "The increased efficiencies realized from our multi-year operating initiatives enabled us to deliver a 10% sales increase in the quarter while controlling inventory levels and increasing our profits. We made great progress on many fronts that position us well for continued global growth and expansion," said Roger Farah, President and Chief Operating Officer. "The new Lauren line is on-track with more than 850 doors scheduled to take delivery of the Spring 2004 line that we will begin shipping in January. Internationally, our European operations integration continues on plan which is resulting in a stronger infrastructure to support our anticipated growth there. In addition, we are pleased with our performance in Japan and our ongoing direct involvement as we look to substantially increase our business throughout Asia."RECENT ACHIEVEMENTS o Delivered mid-to-high-teens retail sales comps in the second quarter at Ralph Lauren and Club Monaco stores, and mid-single digit sales comps in outlet stores. o Continued Asian expansion by opening a 4,200 square foot Ralph Lauren flagship store in Seoul, South Korea and a 2,300 square foot store in Singapore in September 2003. Both stores, owned and operated by licensed partners, offer a complete range of Ralph Lauren's luxury apparel and accessories. o Introduced Home Collection in London's New Bond Street flagship store in September 2003. The new home floor, including a full design center, is approximately 3,700 square feet, making it the largest Ralph Lauren Home presentation in Europe and one of the largest for Ralph Lauren Home worldwide. o Presented the Spring 2004 Lauren by Ralph Lauren line in September 2003. The line was extremely well received by the retail buyers and we continue to expect revenues of approximately $400 million in Fiscal 2005, the line's first full-year of operations. Our Greensboro distribution center is on schedule to handle the Lauren line. The Summer 2004 Lauren line will open at market to buyers in mid-November. o Paid down our short-term bank borrowings resulting in a zero short-term debt balance. o Continued to strengthen the global management team with the promotion of Bridget Ryan Berman to the newly created position of Group President of Polo Ralph Lauren Retail and with the addition of Ken Pilot as President Factory Stores and Retail Concept Development, Kim Roy as President of Lauren by Ralph Lauren, Brian Duffy as President and Chief Operating Officer of Polo Europe, and Don Baum as Senior Vice President of Global Manufacturing. SECOND QUARTER FISCAL 2004 INCOME STATEMENT REVIEW NET REVENUES Net revenues were $707.8 million for the second quarter, an increase of 10.4%, compared to $640.8 million in the comparable year-ago quarter. Revenues were driven by double digit increases in total retail sales and international licensing royalties, as well as an 8.2% increase in the wholesale business. Retail sales comps rose 8.3%, driven by positive comps in all of the Company's retail formats. GROSS PROFIT For the second quarter, gross profit was $350.6 million, an increase of 9.1%, compared to $321.3 million in the second quarter of Fiscal 2003, benefiting primarily from strong retail sales performance and increased royalties driven by increased ownership of the Japanese business. Gross margin for the second quarter was 49.5% of net revenues compared to 50.1% of net revenues in the comparable year-ago quarter. The change in gross margin is primarily attributable to softness in the European wholesale business and the promotional environment at department stores in men's wholesale, partially offset by strong increases in retail merchandise margins. SG&A EXPENSES Total SG&A expenses in the second quarter were $267.6 million, an increase of 13.1%, compared to $236.6 million in the second quarter of Fiscal 2003. The increase was driven primarily by a
change in business mix as a result of increased retail sales, the start-up costs associated with the operations of the Lauren line and the consolidation of expenses of the Japanese master license. STORE COUNT At quarter end, the Company operated 265 stores compared to 243 stores at the second quarter end last year. For the period ended September 27, 2003, the company's retail group consisted of 54 Ralph Lauren stores, 62 Club Monaco stores, 96 full line Outlet stores, 22 Polo Jeans Co. Outlet stores, 22 European Outlet stores and nine Club Monaco outlet stores. During the second quarter the Company opened six stores and closed two stores. EARNINGS OUTLOOK The Company reiterated its previous guidance that adjusted earnings per share for Fiscal 2004 are expected to be in the range of $1.75 to $1.85, which anticipates mid-single digit revenue increases. These projected results include approximately $0.20 per share associated with Lauren start-up costs and the loss of licensing royalty associated with the Lauren and Ralph lines in the third and fourth quarters of Fiscal 2004. Adjusted earnings per share exclude foreign currency gains and losses resulting from certain balance sheet transactions. For the third quarter of Fiscal 2004 adjusted earnings per share are expected to be in the range of $0.44 to $0.49 compared to $0.47 for the third quarter of Fiscal 2003. For the fourth quarter of Fiscal 2004 adjusted earnings per share are expected to be in the range of $0.75 to $0.80, compared to $0.77 for the fourth quarter of Fiscal 2003. CONFERENCE CALL As previously announced, the Company will host a conference call today, November 5, 2003 at 9:00 A.M. Eastern to discuss the quarter results. To access the conference call, listeners should dial in by 8:45 A.M. Eastern today and request to be connected to the Polo Ralph Lauren Second Quarter 2004 conference call. The dial-in number is 1-973-317-5319. Alternatively, individuals are invited to listen to a live online broadcast of the conference call by accessing Polo's website at HTTP://INVESTOR.POLO.COM. A telephone replay of the call will be available from 11:00 A.M. Eastern, Wednesday, November 5, 2003 through 5:00 P.M. Eastern, Friday, November 7, 2003 by dialing 1-973-709-2089 and entering pass code 310207. An online archive of the broadcast will be available through February 3, 2004 by accessing Polo's website 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", "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. CERTAIN STATEMENTS INCLUDING, WITHOUT LIMITATION, THE STATEMENTS MADE BY RALPH LAUREN AND ROGER FARAH AND THE STATEMENTS RELATING TO THE EARNINGS OUTLOOK CONTAINED HEREIN CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE U.S. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND INVOLVE CERTAIN RISKS AND UNCERTAINTIES. ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER ARE THE FOLLOWING: RISKS ASSOCIATED WITH IMPLEMENTING THE COMPANY'S PLANS TO ENHANCE ITS WORLDWIDE LUXURY RETAIL BUSINESS, INVENTORY MANAGEMENT PROGRAM AND OPERATING EFFICIENCY INITIATIVES; RISKS ASSOCIATED WITH THE START-UP OF THE LAUREN
LINE; 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 AND POLITICAL CONDITIONS; 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 A GENERAL ECONOMIC DOWNTURN AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; RISKS ASSOCIATED WITH FINANCIAL DISTRESS OF LICENSEES, INCLUDING THE IMPACT OF OUR NET INCOME AND BUSINESS OF ONE OR MORE LICENSEES REORGANIZATION; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AFFECTING FOREIGN OPERATIONS OR SOURCING AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS RELATED TO FLUCTUATIONS IN FOREIGN CURRENCY AFFECTING OUR FOREIGN SUBSIDIARIES; FOREIGN LICENSEES' RESULTS OF OPERATIONS AND THE RELATIVE PRICES AT WHICH WE AND OUR FOREIGN COMPETITORS SELL PRODUCTS IN THE SAME MARKET AND OUR OPERATING AND MANUFACTURING COSTS OUTSIDE OF THE UNITED STATES; RISKS ASSOCIATED WITH OUR CONTROL BY LAUREN FAMILY MEMBERS AND THE ANTI-TAKEOVER EFFECT OF MULTIPLE CLASSES OF STOCK; RISKS ASSOCIATED WITH CONSOLIDATIONS, RESTRUCTURINGS AND OTHER OWNERSHIP CHANGES IN THE RETAIL INDUSTRY; RISKS ASSOCIATED WITH COMPETITION IN THE SEGMENTS OF THE FASHION AND CONSUMER PRODUCT INDUSTRIES IN WHICH THE COMPANY OPERATES, INCLUDING THE COMPANY'S ABILITY TO SHAPE, STIMULATE AND RESPOND TO CHANGING CONSUMER TASTES AND DEMANDS BY PRODUCING ATTRACTIVE PRODUCTS, BRANDS AND MARKETING, AND ITS ABILITY TO REMAIN COMPETITIVE IN THE AREAS OF QUALITY AND PRICE; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES; RISKS ASSOCIATED WITH THE COMPANY'S ENTRY INTO NEW MARKETS EITHER THROUGH INTERNAL DEVELOPMENT ACTIVITIES OR THROUGH ACQUISITION; RISKS ASSOCIATED WITH THE POSSIBLE ADVERSE IMPACT OF THE COMPANY'S UNAFFILIATED MANUFACTURERS INABILITY TO MANUFACTURE IN A TIMELY MANNER, TO MEET QUALITY STANDARDS OR TO USE ACCEPTABLE LABOR PRACTICES AND OTHER FACTORS DETAILED IN THE FILINGS MADE BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION. 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 and Net Revenues and Income from Operations for the three-month and six-month periods ended September 27, 2003 and September 28, 2002 and the Consolidated Balance Sheets as of September 27, 2003 and September 28, 2002. # # # # Tables Follow
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED) THREE MONTHS ENDED ----------------------------------- SEPTEMBER 27, SEPTEMBER 28, 2003 2002 ------------- ------------- Wholesale Net Sales $ 336,105 $ 310,715 Retail Net Sales 297,136 263,839 ------------ ------------ NET SALES 633,241 574,554 Licensing Revenue 74,536 66,285 ------------ ------------ NET REVENUES 707,777 640,839 Cost of Goods Sold 357,211 319,573 ------------ ------------ GROSS PROFIT 350,566 321,266 Depreciation and Amortization 19,059 17,984 Other SG&A Expenses 248,554 218,634 ------------ ------------ TOTAL SG&A EXPENSES 267,613 236,618 Income From Operations 82,953 84,648 Foreign Currency (Gains) Losses (1,784) 221 Interest Expense, net 2,196 2,942 ------------ ------------ Income Before Income Taxes and Other (Income) Expense 82,541 81,485 Provision for Income Taxes 30,128 29,741 ------------ ------------ Income after Tax 52,413 51,744 Other (Income) Expense, net (A) (1,597) -- ------------ ------------ NET INCOME $ 54,010 $ 51,744 ============ ============ NET INCOME PER SHARE - BASIC $ 0.55 $ 0.53 ============ ============ NET INCOME PER SHARE - DILUTED $ 0.54 $ 0.52 ============ ============ Weighted Average Shares Outstanding - Basic 98,704,000 98,301,000 ============ ============ Weighted Average Shares & Share Equivalents Outstanding - Diluted 100,781,000 99,319,000 ============ ============ DIVIDENDS DECLARED PER SHARE $ 0.05 $ -- ============ ============ (A) Includes Equity Investment Income net of Minority Interest Expense.
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED) The following is a reconciliation of Net Income to Net Income Before Foreign Currency (Gains) Losses: THREE MONTHS ENDED ------------------------------------ SEPTEMBER 27, SEPTEMBER 28, 2003 2002 ------------- ------------- Net Income $ 54,010 $ 51,744 Other (Income) Expense, net (1,597) -- Provision for Income Taxes 30,128 29,741 ------------ ------------ Income before Income Taxes and Other (Income) Expense 82,541 81,485 Foreign Currency (Gains) Losses (B) (1,784) 221 ------------ ------------ Income Before Income Taxes, Other (Income) Expense and Foreign Currency (Gains) Losses 80,757 81,706 Provision for Income Taxes 29,476 29,823 Other (Income) Expense, net (1,597) -- ------------ ------------ Net Income Before Foreign Currency (Gains) Losses $ 52,878 $ 51,883 ============ ============ NET INCOME PER SHARE BEFORE FOREIGN CURRENCY (GAINS) LOSSES - BASIC $ 0.54 $ 0.53 ============ ============ NET INCOME PER SHARE BEFORE FOREIGN CURRENCY (GAINS) LOSSES - DILUTED $ 0.52 $ 0.52 ============ ============ (B) For the three months ended September 27, 2003, the foreign currency gains primarily relate to transaction gains on unhedged inventory purchases in Europe resulting from increases in the value of the Eurodollar compared to the dollar.
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED) SIX MONTHS ENDED --------------------------------- SEPTEMBER 27, SEPTEMBER 28, 2003 2002 ------------ ------------ Wholesale Net Sales $ 497,730 $ 497,443 Retail Net Sales 551,600 490,977 ------------ ------------ NET SALES 1,049,330 988,420 Licensing Revenue 136,178 119,419 ------------ ------------ NET REVENUES 1,185,508 1,107,839 Cost of Goods Sold 586,190 553,969 ------------ ------------ GROSS PROFIT 599,318 553,870 Depreciation and Amortization 40,501 36,446 Other SG&A Expenses 470,338 415,088 ------------ ------------ TOTAL SG&A EXPENSES 510,839 451,534 Income From Operations 88,479 102,336 Foreign Currency (Gains) Losses (4,083) 3,752 Interest Expense, net 5,114 6,926 ------------ ------------ Income Before Income Taxes and Other (Income) Expense 87,448 91,658 Provision for Income Taxes 31,919 33,454 ------------ ------------ Income after Tax 55,529 58,204 Other (Income) Expense, net (A) (3,536) -- ------------ ------------ NET INCOME $ 59,065 $ 58,204 ============ ============ NET INCOME PER SHARE - BASIC $ 0.60 $ 0.59 ============ ============ NET INCOME PER SHARE - DILUTED $ 0.59 $ 0.59 ============ ============ Weighted Average Shares Outstanding - Basic 98,541,000 98,230,000 ============ ============ Weighted Average Shares & Share Equivalents Outstanding - Diluted 100,052,000 99,440,000 ============ ============ DIVIDENDS DECLARED PER SHARE $ 0.10 $ -- ============ ============ (A) Includes Equity Investment Income net of Minority Interest Expense.
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED) The following is a reconciliation of Net Income to Net Income Before Foreign Currency (Gains) Losses: SIX MONTHS ENDED -------------------------------- SEPTEMBER 27, SEPTEMBER 28, 2003 2002 ------------- ------------- Net Income $ 59,065 $ 58,204 Other (Income) Expense, net (3,536) -- Provision for Income Taxes 31,919 33,454 ------------ ------------ Income before Income Taxes and Other (Income) Expense 87,448 91,658 Foreign Currency (Gains) Losses (B) (4,083) 3,752 ------------ ------------ Income Before Income Taxes, Other (Income) Expense and Foreign Currency (Gains) Losses 83,365 95,410 Provision for Income Taxes 30,428 34,825 Other (Income) Expense, net (3,536) -- ------------ ------------ Net Income Before Foreign Currency (Gains) Losses $ 56,473 $ 60,585 ============ ============ NET INCOME PER SHARE BEFORE FOREIGN CURRENCY (GAINS) LOSSES - BASIC $ 0.57 $ 0.62 ============ ============ NET INCOME PER SHARE BEFORE FOREIGN CURRENCY (GAINS) LOSSES - DILUTED $ 0.56 $ 0.61 ============ ============ (B) For the six months ended September 27, 2003, the foreign currency gains primarily relate to transaction gains on unhedged inventory purchases and royalty payments in Europe resulting from increases in the value of the Eurodollar compared to the dollar. In the prior period, the Foreign Currency losses primarily related to transaction losses on the unhedged portion of our Euro debt which resulted from increases in the Eurodollar rate until we entered into the cross currency swap in June 2002.
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED) SEPTEMBER 27, SEPTEMBER 28, 2003 2002 ------------- ------------- ASSETS Current assets Cash and cash equivalents $210,637 $355,475 Accounts receivable, net of allowances 371,591 290,698 Inventories 400,736 401,521 Deferred tax assets 23,430 18,989 Prepaid expenses and other 106,114 58,986 ------------- ------------ 1,112,508 1,125,669 Property and equipment, net 357,924 344,032 Deferred tax assets 54,386 66,762 Goodwill, net 329,003 284,623 Intangibles, net 10,823 - Other assets 171,180 71,869 ------------- ------------ $2,035,824 $1,892,955 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term bank borrowings $0 $120,442 Accounts payable 162,869 173,786 Income taxes payable 58,619 83,560 Accrued expenses and other 208,958 151,155 ------------- ------------ 430,446 528,943 Long-term debt 264,025 226,577 Other noncurrent liabilities 69,968 79,448 Stockholders' equity Common Stock 1,040 1,027 Additional paid-in-capital 530,652 501,441 Retained earnings 825,514 660,328 Treasury Stock, Class A, at cost (4,137,820 and 3,887,094 shares) (78,737) (73,555) Accumulated other comprehensive income (loss) 10,194 (24,128) Unearned compensation (17,278) (7,126) ------------- ------------ TOTAL STOCKHOLDERS' EQUITY 1,271,385 1,057,987 ------------- ------------ $2,035,824 $1,892,955 ============= ============
POLO RALPH LAUREN CORPORATION AND SUBSIDIARIES NET REVENUES AND INCOME FROM OPERATIONS (IN THOUSANDS) (UNAUDITED) The net revenues and income from operations for the three and six months ended September 27, 2003 and September 28, 2002 for each segment were as follows: THREE MONTHS ENDED SIX MONTHS ENDED ------------------------------- -------------------------------- September 27, September 28, September 27, September 28, 2003 2002 2003 2002 ------------- ------------- ------------- ------------ Net revenues: Wholesale $ 336,105 $ 310,715 $ 497,730 $ 497,443 Retail 297,136 263,839 551,600 490,977 Licensing 74,536 66,285 136,178 119,419 ----------- ----------- ----------- ----------- $ 707,777 $ 640,839 $ 1,185,508 $ 1,107,839 =========== =========== =========== =========== INCOME (LOSS) FROM OPERATIONS: Wholesale $ 25,459 $ 35,769 $ (5,590) $ 13,839 Retail 21,075 13,310 32,321 29,180 Licensing 36,419 35,569 61,748 59,317 ----------- ----------- ----------- ----------- $ 82,953 $ 84,648 $ 88,479 $ 102,336 =========== =========== =========== ===========