Polo Ralph Lauren Corporation (NYSE: RL) today reported net income of $76.5 million, or $0.75 per diluted share, for fourth quarter Fiscal 2004 compared to net income of $73.2 million, or $0.74 per diluted share, for fourth quarter Fiscal 2003. For Fiscal Year 2004, net income was $171.0 million, or $1.69 per diluted share, compared to net income of $174.2 million, or $1.76 per diluted share for Fiscal Year 2003.
Adjusted net income was $80.4 million, or $0.79 per diluted share, for the fourth quarter Fiscal 2004 compared to $76.1 million, or $0.77 per diluted share, for the fourth quarter Fiscal 2003. Adjusted net income was $184.6 million, or $1.83 per diluted share, for Fiscal Year 2004 compared to $183.7 million, or $1.85 per diluted share, for Fiscal Year 2003. Outstanding diluted shares increased due to the inclusion of more stock options as a result of the higher stock price during the year. Adjusted results exclude restructuring charges and foreign currency gains and losses resulting from certain balance sheet transactions. For a full analysis of the adjustments, please refer to the table reconciliation of GAAP results to adjusted results.
“We ended the year stronger than ever,” said Ralph Lauren, Chairman and Chief Executive officer. “We produced continued success in our retail group, we took back Lauren by Ralph Lauren and quickly built it into an even stronger brand, and we made remarkable progress on our long-term global strategies. I am proud of the 13,000 employees of this company who accomplished this while delivering growth and increasing our overall financial strength.”
“Over the past few years, we have taken important steps to establish more control over our valuable brand on a worldwide basis. Today we announced another milestone for our company with the acquisition of our childrenswear business. We believe we can continue to expand and develop it into a substantial global business,” Mr. Lauren said.
“Fiscal 2004 was a year of many accomplishments. Our specialty retail business continues to meet our expectations. The strength of our retail stores sales this year shows that we are providing our customers with a unique shopping experience. And we are very pleased with the successful re-launch of the Lauren by Ralph Lauren line. We completed our European consolidation and we expect to see the benefits of this initiative beginning in Fiscal 2005 and well into the future. Our supply chain and systems enhancements have resulted in more efficient and cost effective processes,” said Roger Farah, President and Chief Operating Officer.
Mr. Farah added, “The investments we've made to support our multi-year initiatives have begun to deliver the appropriate return. Our infrastructure can support our current businesses and our future growth plans. We are poised to deliver solid top and bottom line growth in Fiscal Year 2005.”