This looks pretty good; does anyone know what the estimates were?
Tuesday May 19, 8:03 am Eastern Time
Company Press Release
SOURCE: Polo Ralph Lauren Corporation
Polo Ralph Lauren Reports 34% Increase in Full Year Fiscal 1998 Net Income
- PRO FORMA Net Income Increased to $120 million or $1.20 per share for full year fiscal 1998 -
- Net Revenues reached $1.47 billion for full year fiscal 1998 -
- Net Earnings per share improved to $0.29 in the fourth quarter -
NEW YORK, May 19 /PRNewswire/ -- Polo Ralph Lauren Corporation (NYSE: RL - news) today reported record financial results for its fourth quarter and full year fiscal year 1998, the period ended March 28, 1998.
Fourth Quarter and Full Year Results
Net income reached $28.7 million in the fourth quarter of fiscal 1998, an increase of 20 percent from $23.9 million in the same period a year ago. For full year fiscal 1998, net income was $120.1 million versus $89.5 million in the comparable period.
Earnings per share rose to $0.29 for the fourth quarter of fiscal 1998, compared to $0.24 in the fourth quarter of last year. For full year fiscal 1998, earnings per share increased to $1.20 from $0.89 in the comparable period last year.
Net revenues were $356 million for the fourth quarter of fiscal 1998 compared to $343 million in the fourth quarter of last year. Net revenues for the full year fiscal 1998 rose to $1.47 billion from $1.27 billion in last year's comparable period.
The results include pro forma adjustments related to the initial public offering, completed in June 1997, and other adjustments described further below. All per share figures are based on 100.2 million basic shares outstanding for both periods and 100.4 million diluted shares outstanding for the fourth quarter of fiscal 1998.
''We are very pleased with our fiscal 1998 results as we achieved our major objectives and we are well positioned to continue to generate solid growth again for fiscal 1999,'' said Ralph Lauren, Chairman of the Board and Chief Executive Officer.
Operating Highlights
Michael J. Newman, Vice Chairman and Chief Operating Officer commented, ''We see the fiscal 1998 results serving as the foundation for future expansion as a public company. Each quarter's results in fiscal 1998 exceeded the demanding growth plans we set for ourselves. We are particularly pleased with our solid revenue growth and operating margin expansion of over 150 basis points.
''Each of our major businesses have set aggressive plans for fiscal 1999.
''Polo Ralph Lauren's core Wholesale business, including Menswear and Womenswear, had excellent full year fiscal 1998 results, with net sales increasing 18 percent to $733 million. This strength continues into fiscal 1999 as the combined backlog in our Mens and Womens Wholesale operation into the fall of 1998 is up 18%.
''Sales generated by our Retail operation rose 12 percent in full year fiscal 1998 to $571 million. We are expanding this operation with the addition of flagships in Chicago and London, along with stores offering a full range of our products, and Jeans stores.
''The Licensing business generated a 22 percent increase in revenue during the full year fiscal 1998 to $167 million. Continued exceptional performance came from our Lauren Women's Line as well as Chaps and the Polo Jeans lines. International licensing also exceeded our expectations as international roll-outs of successful U.S. brands along with further penetration in existing regions and expansion into new territories continued at a strong pace.
''As we enter our second year as a publicly traded company, we are well on track with our plans, and, 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 with the record performances achieved in the last fiscal year,'' 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 March 28, 1998 and March 29, 1997. The March 28, 1998 data is on a historical basis; the March 29, 1997 data is on a pro forma basis, adjusted for the Polo Retail Corporation (''PRC'') acquisition.
Polo Ralph Lauren Corporation
Selected Financial Information
Balance Sheet Data
(in millions)
March 28, 1998 March 29, 1997
Inventory $298 $246
Accounts Receivable, net $149 $146
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 quarter and twelve (12) months ended March 28, 1998 and March 29, 1997. The Consolidated Statements of Income for the twelve (12) months ended March 28, 1998 and for the quarter and twelve (12) months ended March 29, 1997 are presented on a pro forma basis.
The pro forma statements of income present the effects on the historical financial statements of certain transactions as if they had occurred at the beginning of the period.
These statements reflect 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 42% for the twelve (12) months ended March 28, 1998 and for the three (3) months and twelve (12) months ended March 29, 1997, respectively; (ii) the acquisition of PRC effective April 3, 1997, including the consolidation of PRC's operations for the three (3) and twelve (12) months ended March 29, 1997, the amortization of goodwill over 25 years associated with the acquisition and the elimination of the Company's equity in the net loss of PRC; and (iii) a reduction in interest costs from the application 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 share data)
(unaudited)
Three Months Ended Fiscal Year Ended
March 28, March 29, March 28, March 29,
1998 1997 1998 1997
Pro Forma Pro Forma
Net sales $314,522 $303,932 $1,303,816 $1,131,686
Licensing revenue 41,652 38,981 167,119 137,113
Net revenues 356,174 342,913 1,470,935 1,268,799
Cost of goods sold 184,974 186,473 755,654 687,003
Gross profit 171,200 156,440 715,281 581,796
Selling, general and
administrative expenses125,318 115,864 515,526 429,163
Income from operations 45,882 40,576 199,755 152,633
Interest income 1,897 600 3,003 1,629
Income before
income taxes 47,779 41,176 202,758 154,262
Provision for
income taxes l9,089 17,294 82,631 64,790
Net income $28,690 $23,882 $120,127 $89,472
Net income per
share - Basic
and Diluted $0.29 $0.24 $1.20 $0.89
Common shares
outstanding
- Basic 100,222,444 100,222,444 100,222,444 100,222,444
Common shares
outstanding
- Diluted 100,429,365 -- -- --
SOURCE: Polo Ralph Lauren Corporation |
