Fashion group Ralph Lauren has announced on Friday that it expects that the new store openings will have an impact on the fiscal year's profits until March 2015.
500 million dollar in investments
Just over half of Ralph Lauren's turnover currently comes from department store and retailer sales, but the group wants to get more of a grip on its brands and on sales, which means it is currently expanding the number of its own stores. It aims to invest another 400 to 500 million dollars (300 to 370 million euro) in new projects in the next fiscal year, until March 2015.
Ralph Lauren's retail sales are not really going as well as hoped, with the fourth quarter (ending on 29 March) experiencing a 1 % turnover drop. Wholesale turnover grew 24 %, thanks to excellent performances in North and South America.
Fourth quarter's total turnover grew 13.6 % to 1.87 billion dollars (1.3 billion euro) and its net profit rose 20.5 % to 153 million dollars (111 million euro). The company still expects a 6 to 8 % turnover increase in the next fiscal year, but that is lower than the 9 % it managed in the previous fiscal year.