Ralph Lauren Corp. (RLC) reported revenue of $7.45 billion in fiscal 2014 (ended March), a 7% increase versus the prior year. (Excluding the effect of foreign currency, revenue was up 8%.)
Net income rose 3% over the same period to $776 million. The increase in sales was primarily due to rising retail and wholesale sales, which increased 5% and 11%, respectively. Licensing revenue declined by 9%. Online shopping fueled retail sales, offsetting declines in same-store sales at retail stores. The company’s store count grew from 882 freestanding and concession shops in fiscal 2013 to 936 in 2014, and the number of e-commerce sites increased from seven to eight. Wholesale revenue got a boost from the acquisition of previously licensed businesses, including the Chaps Menswear Business acquired in 2013 and certain businesses acquired in Latin America in 2012. The decline in licensing revenues primarily reflected the transition of certain licensing agreements, including the Chaps Menswear Business and the Australian and New Zealand Business, to wholly-owned operations and the termination of certain Home licensing arrangement, partially offset by higher apparel and fragrance-related royalties.
Fiscal 2014 marked the fourth consecutive year of rising sales and profits for RLC, which, despite a small decline in sales in fiscal 2010, has proved quite resilient during a difficult period for many retailers. Profitability has risen due to higher net sales and increasing income from continuing operations.
