Business Valuation of Polo Ralph Lauren Corporation - Mark Moore ...

offset by the increase in selling salaries and related costs in connection with the increasein retail sales and worldwide store expansion.Licensing income decreased primarily due to the loss of the Lauren and Ralphroyalties from Jones. This decrease was partially offset by improvements in the footwearbusiness and by the inclusion of the operations of the Japanese Master License.The following chart shows the strength of Polo Ralph Laurens Company ascompared to the S&P 500. This shows the strength of Polo Ralph Lauren, and how itshapes up to the other strong companies.The Management Discussion and Analysis summarizes factors affecting the company,it also explains the reasons behind their performance changes. They explain the operatingresults of the company stating its outstanding performance in the year 2004, delivering9.6% increase in gross profits, due to the increases explained above in Retail sales.Management also disclosed negative information about the company in several areas in2004 such as two retail properties that did not perform the way they were originallyexpected to. They also explain how other areas of Polo Ralph Lauren helped offset thenegative revenues, such as the loss of $15 million in Royalties that was explained abovefrom Jones by the increase in Licensing.18