Profits at Ralph Lauren slump to just over €90,000
PRE-TAX profits at the main Irish arm of fashion giant Ralph Lauren last year tumbled by 58pc to €90,178.
New accounts show that Ralph
Lauren Ireland Ltd’s pre-tax profits decreased sharply after the company’s revenues dipped from €3.3m to €3.22m in the 12 months to the end of March last.
The firm operates a factory outlet at Kildare Village, along with being the Irish commissionaire of Swiss-based unit, Ralph Lauren Europe Sari.
The directors state: “Despite the opening of the new childrenswear outlet store in Kildare in September 2016 and the refurbishment of the Kildare men and women’s store during fiscal year 2017, turnover has decreased by 2.4pc in comparison to the previous financial period.”
The directors state that the decrease is due to the commission rates earned from Ralph Lauren Europe Sari reducing from 34pc to 28pc while operating expenses have remained stable in fiscal 2018 at €3.133m.
The directors state that they are satisfied with the level of profitability achieved by the company during fiscal 2018 and expect the company to consolidate its position in the outlet business during fiscal 2019.
The profit last year takes account of non-cash depreciation costs of €426,445 while operating lease expenses increased marginally, from €1.126m to €1.15m.
Staff costs last year increased from €1.1m to €1.23m, with the numbers employed declining from 80 to 79.