Polo Ralph Lauren Corporation reported net income of $115 million, or $1.09 per diluted share, for the second quarter of Fiscal 2008, compared to net income of $137 million, or $1.28 per diluted share, for the second quarter of Fiscal 2007.
The reported results include the net dilutive impact associated with the recent acquisitions, including non-cash amortization of $20 million, and the adoption of Financial Accounting Standards Board Interpretation No. 48 (FIN 48).
Net income for the first six months of Fiscal 2008 declined 6% to $204 million, compared to $217 million in the comparable period last fiscal year. Net income per diluted share decreased 5% to $1.92 per share from $2.02 per share in the first six months last year.
These results also reflect the net dilutive impact related to the recent acquisitions, including non-cash amortization of $29 million, and the adoption of FIN 48.
"The global desirability of the Ralph Lauren brand continues to expand at a strong rate across all product categories," said Ralph Lauren, Chairman and Chief Executive Officer.
"At the same time, we have an exciting portfolio of new and emerging businesses and product categories that are being developed to support our longer-term growth prospects.
We are investing in this high level of innovation with the goal of leveraging our expertise on a worldwide basis, something we are able to do today unlike ever before," Mr. Lauren added.
"We are pleased we were able to meet our expectations for the first half of Fiscal 2008, even as we are making significant investments in longer-term initiatives," said Roger Farah, President and Chief Operating Officer.
"As we assess our outlook for the second half of the year, it is with a more conservative view of discretionary spending among U.S. consumers. Nevertheless, our commitment to enhancing our global brand positioning and shareholder value remains unwavering as we continue to stay the course and execute on three main strategies: expanding our direct to consumer business, growing our international business, and developing new merchandise categories with discrete channels of distribution."
Second Quarter and First Half Fiscal 2008 Income Statement Review:
Net Revenues. Net revenues for the second quarter increased 11% to $1.30 billion, compared to $1.17 billion for the comparable period last year. Excluding the impact of non-comp acquisitions (Impact 21 and New Campaign, Inc.), second quarter net revenues increased 7%.
First half net revenues grew 12% to $2.37 billion from $2.12 billion in the comparable period of Fiscal 2007. Excluding the effect of recent acquisitions, net revenues for the first six months of the fiscal year increased by 7%.
Polo Ralph Lauren Corporation
