Ralph Lauren Corporation (RL, Financial) is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. For more than 47 years, Ralph Lauren'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 Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Black Label, Lauren by Ralph Lauren, RRL, RLX, Ralph Lauren Children’s wear, Denim & Supply Ralph Lauren, American Living, Chaps and Club Monaco, constitute one of the world's most widely recognized families of consumer brands.
Founded 48 years ago, this company is currently valued at $15 billion.
Growth strategies
RL is currently focusing on expanding its international expansion, principally in Asia and Europe. It is investing in investing in infrastructure to support its global reach. Innovation plays a key role in expanding into emerging markets. RL has recently launched Polo Women. This launch is definitely going to uplift the company. Polo Women is already receiving overwhelming response all over. It opened its flagship Polo store in New York. Polo Sport is going to be launched in the later half of 2015. It has always maintained stable growth and is expected to continue in its growth endeavors. Ralph Lauren has always stood for providing quality products.
It is planning to expand in China. RL is planning to expand its e-commerce facilities. It has already launched an e-commerce website in Hong Kong. RL is aware of the fact that China holds tremendous potential for this company. This is why it is taking these measures in this part of the globe. Much of its success has come because of segmenting target customers and different degrees of differentiation.
Fiscal 2015 outlook
The company continues to expect consolidated net revenues for Fiscal 2015 to increase by 6%-8%. The Fiscal 2015 operating margin is still estimated to be approximately 75-125 basis points below Fiscal 2014’s level, due to continued investment in the company’s global retail development and infrastructure, in addition to increased advertising and marketing expense. The full-year Fiscal 2015 tax rate is estimated at 30%.
In the second quarter of Fiscal 2015, the company expects consolidated net revenues to increase by 4%-6%, led by retail segment growth. Operating margin for the second quarter of Fiscal 2015 is expected to be approximately 200-250 basis points below the comparable prior year period, primarily due to the timing of investments to support the company’s strategic growth objectives. The second quarter tax rate is estimated at 30%.
To end
Ralph Lauren is one of the world’s premier luxury lifestyle brands, universally recognized and associated with distinct design and quality. The brand’s integrated approach to advertising, marketing, merchandising and visual presentation allows for the consistent showcasing of the World of Ralph Lauren around the globe — always in a uniquely spectacular way.
Ralph Lauren Corporation’s business model is characterized by tremendous diversity across distribution channels, merchandise categories and geographies. The company’s key competitive advantages are concentrated in inspiration and design; product development; product merchandising; supply chain and logistics; advertising and marketing; and unparalleled in-store customer experiences. These many areas of leadership are complemented by a disciplined operational management that has supported strong financial results and shareholder value creation over the long term.
(Source: Company’s Website)
