Polo Ralph Lauren FY 3Q15 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Global currency fluctuations were headwinds

“The 3% constant currency revenue we achieved in the quarter was below our expectation, largely due to external forces. As the U.S. dollar continue to strengthen against several major currencies and geopolitical tensions remained elevated. There was a sustained negative impact on global tourism, and in certain instances, local customer demand.”

US environment was more competitive

“The U.S. market size was more competitive with greater promotional activity across all distribution channels.”

Best trends in Northern Europe

“Generally speaking, we continued to see the best trends in Northern Europe recovery in the southern part of the continent and more steady expansion in central Europe.”

Moving from a regional to an integrated structure

“Today, we are taking the next step to simplify our operating model. Over the next several months, we will commence plans to move from a decentralized channel and regional structure to a fully integrated global brand-based organization structure.”

We saw a dip in consumer purchase behavior after thanksgiving and so people got extra promotional

“as we enter the holiday season, we got off to a pretty strong start over the Thanksgiving period, the week before Thanksgiving through Cyber Monday, and then we saw a little bit of a drop in sort of the consumer purchase behavior and that period between the Thanksgiving – the end of the Thanksgiving shopping period and the first couple of weeks of December. And as a result of that what we saw was that a lot of the competitors ratcheted up the promotional intensity in terms of trying to deal with the inventory that they had on the floor and so reacted to that not to ensure that we stayed competitive during the period and I think that’s what we were alluding to in our commentary. And again, that was really a U.S. phenomenon, not so much international.”