Ralph Lauren Corporation experienced a fourth quarter fiscal 2015 sink in income, partially caused by increased spending on its expansion.
The company reported net income of $124 million, or $1.41 per diluted share for the fourth quarter fiscal 2015. In comparison, fourth quarter fiscal 2014 was $153 million, or $1.68 per diluted share.
Net income for the full 2015 fiscal year was $702 million, or $7.88 per diluted share. Full 2014 fiscal year net income was $776 million, or $8.43 per diluted share.
Net revenues FY 2015 Q4 demonstrated the company’s growth, increasing approximately 7 percent on a constant currency basis. This movement was driven by growth in the wholesale market and double-digit e-commerce expansion across all regions. Net revenues for the full year fiscal 2015 period increased approximately 4 percent on a constant currency basis.
“Our better-than-expected fourth quarter results were achieved in a challenging global macroeconomic environment, showcasing the operational discipline of our teams,” said Jacki Nemerov, president and chief operating officer. “While foreign exchange and global consumer spending remain unpredictable, we are taking decisive actions to offset some of these ongoing external pressures.”
Overall business expansion and investment in strategic growth initiatives led to $3.3 billion in operating expenses for FY 2015.
Ralph Lauren, chairman and CEO, said, his namesake company “made excellent progress on our strategic initiatives in Fiscal 2015.” Lauren cited several store openings in key international markets, encouraging the growth of their luxury accessories business, introducing Polo for women, developing Polo Sport and announcing a new global brand management organizational structure.
The company currently expects consolidated net revenues for Fiscal 2016 to increase by mid-single digits in constant currency.