Founded in 1967 by Mr. Ralph Lauren, we are a global leader in the design, marketing, and distribution of premium lifestyle products including apparel, footwear, accessories, home furnishings, and other licensed product categories. Our long-standing reputation and distinctive image have been developed across an expanding number of products, brands, sales channels, and international markets. We believe that our global reach, breadth of product offerings, and multi-channel distribution are unique among luxury and apparel companies. We diversify our business by geography (North America, Europe, and Asia, among other regions) and channel of distribution (wholesale, retail, and licensing). This allows us to maintain a dynamic balance as our operating results do not depend solely on the performance of any single geographic area or channel of distribution. Our wholesale sales are made principally to major department stores and specialty stores around the world, as well as to certain third party-owned stores to which we have licensed the right to operate in defined geographic territories using our trademarks. We also sell directly to consumers through our integrated retail channel, which includes our retail stores, concession-based shop-within-shops, and digital commerce operations around the world. In addition, we license to third parties for specified periods the right to access our various trademarks in connection with the licensees' manufacture and sale of designated products, such as certain apparel, eyewear, fragrances, and home furnishings.
We cannot assure the successful implementation of our growth strategy.
We may not be successful in the expansion of our multi-channel distribution network or accelerating growth in certain product categories.
The success of our business depends on our ability to respond to constantly changing fashion and retail trends and consumer demands in a timely manner, develop products that resonate with our existing customers and attract new customers, and provide a seamless shopping experience to our customers.
Our profitability may decline if we are unable to effectively manage inventory or as a result of increasing pressure on margins.
The success of our business depends on our ability to retain the value and reputation of our brands.
We face intense competition worldwide in the markets in which we operate.
Economic, political, and other conditions may adversely affect the level of consumer purchases of discretionary items and luxury retail products, including our products.
We may not fully realize the expected cost savings and/or operating efficiencies from our restructuring plans.
Our business is subject to risks associated with leasing real estate and other assets under long-term, non-cancellable leases.
Recent changes in our executive and senior management team may be disruptive to, or cause uncertainty in, our business.
Our ability to conduct business globally may be affected by a variety of legal, regulatory, political, and economic risks.
Our business is subject to risks associated with importing products and the ability of our manufacturers to produce our goods on time and to our specifications.
A data security or privacy breach could damage our reputation and our relationships with our customers or employees, expose us to litigation risk, and adversely affect our business.
Our business could suffer if our computer systems and websites are disrupted or cease to operate effectively.
Fluctuations in our tax obligations and effective tax rate may result in volatility of our operating results.
Our business is exposed to domestic and foreign currency fluctuations.
A substantial portion of our revenue is derived from a limited number of large wholesale customers. Our business could be adversely affected as a result of consolidations, liquidations, restructurings, other ownership changes in the retail industry, and/or any financial instability of our large wholesale customers.
Economic conditions could have a negative impact on our major customers, suppliers, vendors, and lenders, which in turn could materially adversely affect our business.
Our business could suffer if we need to replace manufacturers or distribution centers.
Our business could be adversely affected by natural disasters and other catastrophic events in the locations in which we or our customers or suppliers operate.
Our trademarks and other intellectual property rights may not be adequately protected outside the U.S.
Our business could suffer if we fail to comply with labor laws or if one of our manufacturers fails to use acceptable labor or environmental practices.
Certain legal proceedings, regulatory matters, and accounting changes could adversely affect our business.
The trading prices of our securities periodically may rise or fall based on the accuracy of predictions of our earnings or other financial performance, including our ability to return value to shareholders.
The voting shares of our Company's stock are concentrated in one majority stockholder.
We rely on our licensing partners to preserve the value of our licenses. Failure to maintain licensing partners could harm our business.
On June 4, 2018, our Board of Directors approved a restructuring plan associated with our strategic objective of operating with discipline to drive sustainable growth (the "Fiscal 2019 Restructuring Plan"). The Fiscal 2019 Restructuring Plan includes the following restructuring-related activities: (i) rightsizing and consolidation of our global distribution network and corporate offices; (ii) targeted severance-related actions; and (iii) closure of certain of our stores and shop-within-shops. Actions associated with the Fiscal 2019 Restructuring Plan were largely completed during Fiscal 2019, with certain activities shifting into Fiscal 2020. Total actions associated with the Fiscal 2019 Restructuring Plan are expected to result in gross annualized expense savings of approximately $60 million to $80 million.