Ralph Lauren Focusing On Growth Initiatives & E-Commerce
By Jennifer Lynn, contributing writer
The retailer reported significant investments in its growth initiatives, global expansion, e-commerce, and infrastructure
Ralph Lauren Corporation reported its second quarter earnings on November 6, 2013. The global retailer currently operates 416 stores, 131 which are of Ralph Lauren stores, 225 Polo factory stores, 523 concession shop locations and 60 are Club Monaco stores. Jacki Nemerov, president and chief operating officer stated, “We made excellent progress on several key initiatives during the second quarter. We successfully transitioned key operations to new technology platforms and made great strides with our global store expansion and e-commerce efforts.” Ralph Lauren is capitalizing in direct-to-consumer growth opportunities in Asia through continuing its expansion of its global concession shops. The retailer raised its Fiscal 2014 revenue outlook to 5 to 7 percent growth.
Ralph Lauren’s net income was $205 million during the quarter, down 4 percent from $214 million during last year’s same quarter. Revenues increased to $1.9 billion from $1.8 million in 2012, and retail sales growth resulted in $944 million. The sales growth resulted from the addition of new stores, global expansion of e-commerce, and comparable store sales growth. Ralph Lauren’s wholesale revenue rose 1% to $928 million. By investing in new technology platforms and opening new stores, Ralph Lauren is poised for further growth in its wholesale and retail markets. Ralph Lauren’s retail e-commerce platform integrates technology through use of “best in class” virtual shopping, mobile device sales platforms and video. The retailer aims to offer customers engaging experiences of its style.
Chaps men’s sportswear operations and continued growth of North American merchandise categories have contributed to drive wholesale revenue. As a result of economic challenges in foreign markets, the company plans to reduce shipments to select European customers and transition Japanese wholesale distribution to operate directly as concession shops. The retailer also reported macroeconomic impact in Southern Europe which revenues fell by 2.7% in fiscal 2013 due to an overall slowdown in tourism and tourists shopping.
Growth initiatives have been successful for the company through its online e-commerce site, marketing, brand development, adoption of technology, retail innovations, and international expansion. The retailer has been expanding in Asia as its primary focus and throughout emerging markets. Brand re-positioning into China is a priority, with the company planning to open 60 new retail stores there in the near future.
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