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Rugby Ralph Lauren: Rest In Peace

bourbonbasted

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RL announced this morning that it will discontinue the Rugby brand line after falling Q2 net income.


NEW YORK (AP) — Ralph Lauren says reduced wholesale shipments to Europe and a tax cost drove its fiscal second-quarter net income down by 8 percent and lowered its revenue expectations for the year amid a global slowdown

But the luxury fashion company's second-quarter results topped analysts' expectations, and its shares rose modestly.

The 45-year-old owner of the Ralph Lauren Collection and Polo by Ralph Lauren brands sells its products at department stores, its own shops and through other retailers.

Ralph Lauren says net income for the three months ended Sept. 29 fell to $213.7 million, or $2.29 per share. That compares with $233.5 million, or $2.46 per share, last year. Analysts expected $2.15 per share.

Revenue fell 2 percent to $1.86 billion. Analysts expected $1.83 billion. A planned reduction in wholesale shipments to some European stores hurt revenue.

Ralph Lauren says it plans to discontinue its Rugby brand to focus on more profitable brands.

Ralph Lauren said that sales to its department stores and other store customers fell to $915 million, down 8 percent from the year-ago period, hurt by planned reductions in shipments to certain European specialty stores. The company's business has been hurt by the phasing out of its American Living brand, which had been exclusively carried by mid-price department store chain J.C. Penney.

Sales at its own stores rose 5 percent to $901 million. Revenue at stores opened at least a year rose 3 percent and was up 5 percent in constant currency. The increase was fueled by new stores and e-commerce operations that was partially offset by stores closures related to its move to phase out stores operated by local partners in China. It aims to replace those outlets with company-owned shops.

Ralph Lauren also lowered sales expectations for fiscal 2013 to 2 percent to 3 percent growth, from a prior forecast of mid-single digit growth.

"Macroeconomic conditions lead us to be incrementally more cautious on near-term customer demand trends worldwide," said Roger Farah, Ralph Lauren's president and chief operating officer in a statement.

Ralph Lauren's shares rose $2.84 per share, or 1.7 percent, to $161.88 in morning trading Friday.

SOURCE

Kinda sad to hear...
 
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akatsuki

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Not really a surprise to me, but still sad. I think Denim & Supply was pretty much the nail in the coffin for it. That and the overzealous branding all over the place...
 

HansderHund

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One of only a few admitted failures for the company I think. I would guess that the rugby line couldn't really define itself. Price points were at or near PRL for the most part. The styling could be seen in the more recognizable PRL and the more high-end/desired RRL.

Rugby focused on a younger audience, trying to capture their attention in university. I would guess that they found that the Rugby line was not creating new customers/sales but cannibalizing sales from PRL, Denim & Supply and RRL.
 

MZhammer

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Aww bummer... will be on the lookout for mad closeouts
 

bourbonbasted

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the clothes were so overdone that it made me nervous


PRL's identity is WASPy-icon America. RLPL's identity is fine Italian tailoring. And RRL's identity is Old West Heritage. Rugby's identity tried to bridge the gap between all three, but instead branded itself as the try-hard fraternity kid college roommate of yours who had more money than sense and never quite got it.

Interestingly, I always felt there was a sense of irony to Rugby. Every time I entered a store I got the feeling that the sales associates were poking fun at their oft over-styled PRL older brother. There was never anything genuine about the brand and everything seemed forced. At least that was my opinion.

Still, they had a few nice things...
 
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bellyhungry

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I think the skull and cross bone logo on their polo is pretty cool.
 

ethanm

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Since when is J.C. Penny a mid-price department store?
 

mack11211

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like a race car driver.
they could never leave any empty spaces on a garment.
Of course middle aged men were not the target audience


If preppy was ivy league with the irony squared, then preppy revival like Rugby was irony cubed.

I liked irony squared more but I, too, am old.

Something about the Rugby closure points to a strength of PRL that over time is becoming a weakness.

The original PRL in the late 60s/early 70s was nostalgic for a 40s Hollywood Englishness. And the core of the brand style is tailored clothing worn more or less the traditional way, even if most of the sales probably come from button-ups and khakis.

Starting in the 80s, PRL realized that the youth market was getting away from them. They began making half-hearted denim-oriiented lines to catch them. These didn't pan out and some of the frustrated PRL executives left and built up Tommy Hilfiger.

So Rugby is just the latest of many PRL youth offshoots to wither.
 
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gladhands

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Fast fashion owns the youth market. Kids are more than happy to fill their wardrobes with clothes from H&M and Zara. Rugby was never cool enough to get them to spend the extra $$$.
 

diglett

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Rugby's identity tried to bridge the gap between all three, but instead branded itself as the try-hard fraternity kid college roommate of yours who had more money than sense and never quite got it.
I'm in college, and have never been into anything sold by Rugby. It all seemed showy and tacky compared to PRL and RRL.
 

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