February 15, 2010 - Polo Ralph Lauren Corp. (RL-NYSE) together with its subsidiaries, engages in the design, marketing, and distribution of lifestyle products worldwide. It offers men's, women's, and children's clothing; and accessories comprising footwear, eyewear, watches, jewelry, hats, and belts, as well as leather goods, including handbags and luggage.

In addition, it licenses its products, such as men's sportswear, men's tailored clothing, men's underwear and sleepwear, eyewear, and fragrances. The company sells to department stores, specialty stores, and golf and pro shops; full-price retail stores and factory stores; and online through RalphLauren.com and Rugby.com. As of September, 2009, it operated 160 full-price retail stores and 168 factory stores. Polo Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

Here's what caught my eye about RL: every year since it's been public (IPO was in 1997) earnings increased, except in 2001 when they were flat. They started at 89 cents a share and 2009 should show the first down year, to $4.21 from $4.42 last year (fiscal year ends in March). The slip will come from expenses related to its new Asia Pacific operations which will hurt the March quarter's results. For fiscal Q3 ended December 26th, the company recorded net income of $111.1million, or $1.10 per share, up 6% from $105.3 million, or $1.05 pershare, a year ago. Revenue edged down to $1.24 billion from $1.25 billion. Analysts were looking for EPS of $1.01 on sales of $1.26 billion. For Q4, the company said its Asian operations would hurt EPS by -8 to -10 cents. For 2010, it anticipates revenue slipping in the low single digits versus a prior forecast for a mid-single-digit decline. 17 analysts covering the stock have an estimate of $4.78 for 2010 earnings.

With lots of cash, the company recently doubled the pay out to investors, taking the dividend from 20 cents a share per year to 40 cents. that gives a yield of .5%. The next dividend will be paid in early April. In addition, the company is using its cash to buy back shares. The board recently increased the repurchase program by $225 million for a total of $431 million. There are 98.80 million shares outstanding with a Float of 65.98 million. Institutions own 99.80% of the float. Insiders own 7.46% of the stock. Cash is $1.29 billion.

RL's price took a breather last week when it released numbers for the December quarter, going from $86 to $75. It's starting to recover. The stock was trading at $31.64 on March 6, 2009 so it had a strong run in the last 12 months. The all-time high for the stock was $102.60, achieved in early 2007.

More numbers: Market Cap is $7.75 billion. Forward P/E is 16.4. Price to book is 2.54. Book value is $31.14. Operating margin for the last 12 months was 13.60% while Profit margin was 8.42%. Cash per share is $13.06. Total debt is $298.30 million. Current ratio is 3.11. Beta is 1.59.

RL is a quality stock with a history of solid earnings growth. This year, that will be interrupted, but analysts see it as temporary. Keep this one on the radar screen after you've done more research. If it dips noticably, it might be one worthy of your portfolio.

- Company Web site: www.ralphlauren.com

- Ted Allrich