Home Holds Back Polo Profit
August 11, 2008,
A decline in home royalties proved a drag on Polo Ralph Lauren Corporation's licensing revenues during the first quarter ended June 28. Polo's quarterly licensing revenues rose 1% to $47 million. Revenue from the expanding American Living program at JCPenney, Chaps royalties from Kohl's and growth in U.S. royalties in men's underwear helped offset the decline in overall home licensing volume, the company reported last week.
American Living, which launched as a JCP captive brand in February in apparel and home, has had some strong business categories and some "we're still learning from," Farah said, without specifying. "We're now next week showing spring  merchandise to Penney's, and I think that will incorporate our learnings."