.The company said that second quarter gross margin declined 140 basis
points to 56.6%, and was down 10 basis points over the first-half to
59.5%. The company attributed the declines to the “negative impact of
cost of goods inflation” that was partially offset by price increases
and more favorable channel and geographic mix than the prior year .
.Net income rose 13.6% to $233 million for the quarter and 28% for the
half to $418m. Second-quarter revenue increase 24% to $1.9 billion
while over the half, sales rose 28% to $3.4 billion. The company said
the higher net revenues reflect global wholesale shipment growth, strong
retail sales worldwide and favorable foreign currency effects .
.For the full-year, the company expects consolidated revenues to
increase to between the high-teens to low 20% rate, up on the prior
expectation of mid-to-high-teens growth. It also expects operating
margin to be down 50 basis points on the prior year, against prior
guidance of a 50-100 basis point decline .
.“Our momentum in the first half of the year demonstrates the
incredible vitality of our brand and the growing desirability of our
products around the world,” said chairman and CEO Ralph Lauren. “The
progress we are making with our international development and the
acceptance of our vibrant accessories merchandise confirms that we are
paving important new avenues of growth. At the same time, demand for our
products in more developed markets has been very strong. Customers
around the world understand that Ralph Lauren stands for the highest
quality products that withstand the test of time, and this is reflected
in our strong performance over the last six months.” .