New York-based Ralph Lauren Corporation, a global leader in the design, marketing, and distribution of premium lifestyle products, reported its financial statement for the fourth quarter and fiscal year 2017, one day after announcing that Patrice Louvet has been named the company’s president and chief executive officer.
For the fourth quarter of 2017, Ralph Lauren posted a negative earnings per diluted share of $2.48 on a reported basis and positive earnings of $0.89 on an adjusted basis, as compared to earnings per diluted share of $0.49 on a reported basis and $0.88 on an adjusted basis last year.
Reported revenue decreased 16 percent to $1.6 billion, which the company said was in line with previous guidance and was driven by initiatives to improve quality of sales and reduce excess inventory, as well as challenging traffic trends. International revenue in the fourth quarter, declined 9 percent while North America revenue was down 21 percent from last year.
Wholesale revenue in the fourth quarter decreased 17 percent to $777 million due to primarily the North American business; retail revenue in the fourth quarter decreased 16 percent to $745 million, which was driven by a 11 percent decline in comparable store sales that was negatively impacted by challenging traffic and average transaction size trend; while licensing revenue in the fourth quarter increased 7 percent on a reported basis to $43 million.
For fiscal 2017, the company posted negative earnings per diluted share of $1.20 on a reported basis and positive earnings of $5.71 on an adjusted basis, as compared to earnings per diluted share of $4.62 on a reported basis and $6.36 on an adjusted basis for the full year of Fiscal 2016.
“The retail landscape today is more dynamic than ever, but within this environment, our brand continues to be one of the most recognized and beloved all over the world,” said Ralph Lauren, executive chairman and chief creative officer. “Our performance for the year reflects our work to strengthen our brand and I am confident that the actions we are taking, combined with our strong heritage, position us well to succeed.”
Added Jane Nielsen, chief financial officer: “Fiscal 2017 was an important year as we strengthened the foundation of the company. We created operational efficiencies, increased the productivity of our assortment and improved quality of our sales. We also strengthened the global organization, adding a Chief Marketing Officer and Men’s Brand President, and created a single International organization under a seasoned leader to drive a more efficient organization.”
Looking ahead to fiscal 2018, net revenue is expected to decrease 8 to 9 percent, according to the company. Nielsen continued: “The work we have done will continue into Fiscal 2018 as we drive toward strengthening the brand, improving return on investment and creating value for shareholders.”