Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. The company’s segments include Wholesale, Retail, and Licensing. Wholesale This segment consists of sales made principally to major department stores and specialty stores around the world. This segment sells the company’s products globally to upscale and certain mid-tier department stores, specialty stores, and golf and pro shops. As of April 2, 2016, the company’s wholesale products were sold through approximately 13,000 doors worldwide. Its products are also sold through the e-commerce sites of certain of the company’s wholesale customers. The primary product offerings sold through the company’s wholesale channels of distribution include apparel, accessories, and home furnishings. Its luxury brands — Ralph Lauren Collection and Ralph Lauren Purple Label — are distributed worldwide through a limited number of premier fashion retailers. Department stores are the company’s major wholesale customers in North America. In Latin America, the company’s wholesale products are sold in department stores and specialty stores. In Europe, its wholesale sales are comprised of a varying mix of sales to both department stores and specialty stores, depending on the country. In Asia, its wholesale products are distributed primarily through shop-within-shops at department stores. The company also distributes its wholesale products to certain licensed stores operated by its partners in Latin America, Asia, Europe, and the Middle East. The company sells the majority of its excess and out-of-season products through secondary distribution channels worldwide, including its retail factory stores. During year ended April 2, 2016, sales to the company’s major wholesale customer, Macy's, Inc. (Macy's), accounted for approximately 11% and 25% of its total net revenues and total Wholesale net revenues, respectively. Further, during year ended April 2, 2016, sales to the company’s three major wholesale customers, including Macy's, accounted for approximately 24% and 53% of the company’s total net revenues and total Wholesale net revenues, respectively. The company’s products are sold primarily by its own sales forces. Its Wholesale segment maintains its primary showrooms in New York City. In addition, the company maintains regional showrooms in Milan, Paris, London, Munich, Madrid, Stockholm, and Panama. Shop-within-Shops: As a critical element of its distribution to department stores, the company and its licensing partners utilize shop-within-shops to enhance brand recognition, to permit more complete merchandising of its lines by the department stores, and to differentiate the presentation of its products. As of April 2, 2016, the company had approximately 25,000 shop-within-shops in its primary channels of distribution dedicated to its wholesale products worldwide. The size of the company’s shop-within-shops ranges from approximately 100 to 9,200 square feet. Shop-within-shop fixed assets primarily include items, such as customized freestanding fixtures, wall cases and components, decorative items, and flooring. Basic Stock Replenishment Program: Basic products, such as knit shirts, chino pants, oxford cloth shirts, select accessories, and home products could be ordered by the company’s wholesale customers at any time through its basic stock replenishment program. Retail This segment consists of sales made directly to consumers through the company’s integrated retail channel, which includes its retail stores, concession-based shop-within-shops, and e-commerce operations around the world. This segment sells directly to customers throughout the world through its 493 retail stores, totaling approximately 3.8 million square feet, and 583 concession-based shop-within-shops, as well as through its various e-commerce sites. The extension of the company’s direct-to-consumer reach is one of its primary long-term strategic goals. The company operates its retail business using an omni-channel retailing strategy that seeks to deliver an integrated shopping experience with a message of its brands and products to its customers, regardl
ralph lauren corp (RL:New York)
650 Madison Avenue
New York, NY 10022
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