Polo Ralph Lauren Corporation (NYSE: RL) today reported net income of $80.4 million, or $0.78 per diluted share, for the second quarter of Fiscal 2005 compared to net income of $54.0 million, or $0.54 per diluted share, for the second quarter of Fiscal 2004.
Adjusted net income was $79.0 million, or $0.76 per diluted share, for the second quarter of Fiscal 2005 compared to $52.9 million, or $0.52 per diluted share, for the second quarter of Fiscal 2004. Adjusted results exclude restructuring charges and foreign currency gains resulting from certain transactions in our European operations. For a full analysis of the adjustments, please refer to the table reconciliation of GAAP results to adjusted results.
For the first half of Fiscal 2005, reported net income increased 59% to $93.8 million, or $0.91 per diluted share, compared to $59.1 million, or $0.59 per diluted share, in the first half of Fiscal 2004. Adjusted net income was $93.0 million, or $0.90 per diluted share in the first half of Fiscal 2005 compared to $56.5 million, or $0.56 per diluted share in the first half of Fiscal 2004.
“I am pleased with the excitement about our brand and the growing global demand for our products. Through our retail business, we have taken strong steps to expand our luxury position. In September, we opened a flagship store in Milan on Via Montenapoleone establishing a new level of sophistication and glamour. We have always had a strong men's business in Italy and now our women's Collection and accessories have made a tremendous impact,” said Ralph Lauren, Chairman and Chief Executive Officer, adding, “we have set the tone for our European business and we did it in the most fashionable city on the continent.”
“Last week we launched our new brand, Rugby, in the United States adding another whole new dimension. I have been thinking about a younger customer for several years. Rugby is cooler, hipper and has an attitude. It captures my point of view about heritage and sensibility. It's the new Polo,” Mr. Lauren said. “This new success originates from our own creativity. We are forward thinking in our retail and we have shown our ability to grow within our brands adding new worlds. With the addition of childrens, both at wholesale and retail, we can really take the customer through all ages and sizes.”
“We are well positioned to execute our global growth strategy. As we expand, we continue to carefully manage our brands to ensure that their integrity and positioning is appropriately maintained,” said Roger Farah, President and Chief Operating Officer. “Our investments in building a strong global platform will be a significant competitive advantage, improving our efficiency and consistency as we continue our domestic and international expansion. These investments in both capital and people are already driving improvements in our wholesale businesses, especially in Europe. And our Lauren by Ralph Lauren and childrenswear businesses are also benefiting. At the same time we continue to improve our specialty retail business where we have seen significant margin improvement in the first half of the year.”