Polo Ralph Lauren Corporation(RL)

Fourth Quarter Earnings Per Share Increased 19% to $0.32. Full
Year EPS Increased 16% to $1.45.

Fourth Quarter Operating Income Increased 21%. Full Year
Operating Income Grew 22%.

Fourth Quarter and Full Year Gross Margin Grew to 48.7%.
Inventory Levels Lower by 12%.
Polo Ralph Lauren Corporation (NYSE: RL) reported today that its fourth quarter fiscal 2000 net income grew to $31.8 million, representing earnings of $0.32 cents per diluted share, a gain of 19% over pro forma diluted earnings per share of $0.27 for the fourth quarter of fiscal year 1999. The results reflect strong operating performance in Polo's wholesale and licensing businesses, and improvement in Polo's full line retail stores.

The pro forma results for the quarter ended April 3, 1999 include the results of Club Monaco, which was acquired in the first quarter of fiscal 2000. All results presented herein exclude the impact of the fiscal year 1999 restructuring. The following table presents the results for the quarters.


Quarter Ended
-------------
(Dollars in thousands,
except per share data) 4/1/00 4/3/99 % Change
------ ------ --------
Pro forma (1)
-------------
Net Revenues $ 466, 923 $ 463,989 (2) 1%
Income from Operations 59,046 48,731 (3) 21%
Net Income 31,770 27,397 (3) 16%
Diluted Earnings Per Share $ 0.32 $ 0.27 (3) 19%

(1) Pro forma results include the results of Club Monaco which was
acquired in Q1 FY2000.
(2) Net Revenues exclude the results of retail's 53rd week
(3) Excludes impact of restructuring charge in Fiscal 1999

"During the past year our brand experienced strong growth, particularly in our core businesses. We understand our customers and the world class products we develop for them continue to be well received. This understanding is the cornerstone, both domestically and internationally, of our future growth opportunities," said Ralph Lauren, Chairman and Chief Executive Officer.

"Our plan now is to expand the availability of our products globally through multiple channels. Our European acquisition allows us to offer our brands on a more direct basis to our customers internationally. Our new media company, Ralph Lauren Media, will provide another dimension through which our customers can experience, interact with, and purchase our products. "

"In addition, we plan to enhance Polo's retail business through the rollout of our concept stores and by building the Club Monaco brand into a strong business in North America."

"Our long-term outlook for our business remains strong and I am excited about our growth initiatives. I am pleased Roger Farah has joined us as President and Chief Operating Officer. This key addition supports the strong, seasoned management team we now have in place to execute the plans."

Lance Isham, Vice Chairman of Polo Ralph Lauren, commented, "We set aggressive goals for our businesses in the past year and have made good progress. We increased gross margins significantly and our operating income rose 22%. While we have seen some expense reduction for the year, we still are not satisfied. We will continue to examine our overall expense structure."

"With strong demand for our products and increased attention to expenses, we are committed to growing overall earnings by at least 10% this year."

Net Revenues

Net revenues rose to $466.9 in the fourth quarter, a gain of approximately 1% from the prior year's period, excluding the 53rd week. Including the 53rd week, net revenues decreased 2%. The quarterly comparisons were negatively impacted by excess inventory clearance in the wholesale and retail businesses in the prior year that increased revenues temporarily.

For the year ended April 1, 2000, net revenues grew to $1.96 billion, an increase of approximately 8.3% from the prior year's period, excluding the 53rd week. Including the 53rd week, net revenues rose approximately 7.5%.

Income from Operations

Fourth quarter income from operations rose 21% over the comparable period last year. Income from operations rose as a result of a 380 basis point improvement in gross margin due to stronger initial margins from improved sourcing and reduced markdowns.

For the full year, income from operations increased to $263.9, a 22% gain over the previous year. For the year, income from operations improved as gross margin gained 90 basis points over the prior year and expenses decreased by 70 basis points.

Net Income/ Earnings Per Share

Net income for the fourth quarter was $31.8 million, or $0.32 per diluted share. This compares to pro forma net income of $27.4 million, or $0.27 per diluted share, in the prior year's fourth quarter.

Net income for the full year increased to $143.5 million or $1.45 per diluted share, compared to $124.6 million, or $1.25 per diluted share for the same period last year.

During the fourth quarter, Polo Ralph Lauren opened three stores and closed five stores. At quarter end, the Company had 226 stores including 27 Polo brand stores, five Polo Concept stores, 13 Polo Jeans Co. stores, 71 Club Monaco stores, 82 full line Outlet stores, 26 Polo Jeans Co. Outlet stores and two Lauren Outlet locations.

The following table provides selected Balance Sheet information as of April 1, 2000 and April 3, 1999. The April 1, 2000 data is presented on a historical basis and the April 3, 1999 data is presented on a pro forma basis adjusted to reflect the Club Monaco and European acquisitions.

April 1, 2000 April 3, 1999
------------- -------------
(In millions) Pro Forma
Inventory $ 391.0 $ 444.7
Accounts Receivable, Net $ 204.4 $ 181.4

Cash at quarter's end totaled $164.6 million with a total debt of $428.8 million. Total assets were $1.63 billion and total liabilities were $858.4 million, with a resulting stockholders' equity of $772.4 million.

Attached are the Consolidated Statements of Income for the quarter and twelve months ended April 1, 2000 and April 3, 1999. The Pro Forma Consolidated Statements of Income for the quarter and the twelve months ended April 3, 1999, present the effects on Polo's historical financial statements of the acquisition of Club Monaco as if it had occurred at the beginning of the period.

Polo Ralph Lauren Corporation (NYSE: RL) is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. For more than 30 years, Polo's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company's brand names, which include, "Polo by Ralph Lauren", "Polo Sport Ralph Lauren", "Ralph Lauren Collection", "Ralph Lauren Purple Label", "RALPH by Ralph Lauren", "Lauren by Ralph Lauren", "Polo Jeans Co. Ralph Lauren", and "Chaps Ralph Lauren", among others, constitute one of the world's most widely recognized families of consumer brands. In April 1999, Polo Ralph Lauren acquired Club Monaco, a vertical lifestyle retailer based in Toronto. In February 2000, Ralph Lauren Media LLC was formed as a joint venture between Polo Ralph Lauren, NBC and two of NBC's affiliated companies -- ValueVision International, Inc. (Nasdaq: VVTV) and NBC Internet, Inc. (Nasdaq: NBCI) -- to bring the Polo Ralph Lauren American lifestyle experience to consumers via multiple media platforms, including the Internet, broadcast, cable and print.

Certain statements contained herein constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations and involve certain risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Securities and Exchange Commission filings of the Company.

Polo Ralph Lauren Corporation
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

Three Months Ended
-----------------------------------
April 1, April 3, April 3,
2000 1999 1999
Actual Pro Forma(1) Actual
----------- ----------- -----------

Wholesale Net Sales $ 240,934 $ 251,588 $ 251,588
Retail Net Sales 163,445 169,464 137,421
----------- ----------- -----------
Net Sales 404,379 421,052 389,009
Licensing Revenue 61,357 54,059 54,059
Other Income 1,187 2,679 2,679
----------- ----------- -----------
Net Revenues 466,923 477,790 445,747

Cost of Goods Sold 239,755 263,345 246,668
----------- ----------- -----------
Gross Profit 227,168 214,445 199,079

SG&A Expenses 168,122 165,714 151,373
----------- ----------- -----------

Income From Operations 59,046 48,731 47,706

Interest Expense 5,428 3,292 1,689
----------- ----------- -----------
Income Before Taxes and
Restructuring 53,618 45,439 46,017

Provision for Income Taxes 21,848 18,042 18,753
----------- ----------- -----------

Net Income Before Restructuring 31,770 27,397 27,264

Restructuring Charge, net of taxes -- 34,695 34,695
----------- ----------- -----------

Net Income (Loss) $ 31,770 $ (7,298) $ (7,431)
=========== =========== ===========

Net Income Per Share before
Restructuring, net - Basic $ 0.32 $ 0.28 $ 0.27
=========== =========== ===========

Net Income Per Share before
Restructuring, net - Diluted $ 0.32 $ 0.27 $ 0.27
=========== =========== ===========

Net Income Per Share - Basic and
Diluted $ 0.32 $ (0.07) $ (0.07)
=========== =========== ===========

Weighted Average Shares
Outstanding - Basic 98,242,706 99,622,932 99,622,932
=========== =========== ===========

Weighted Average Shares & Share
Equivalents Outstanding - Diluted 98,347,281 99,782,519 99,782,519
=========== =========== ===========

Supplemental information:
EBITDA $ 72,252 $ 63,046 $ 60,832

(1) The Pro Forma Consolidated Statements of Income for the quarter
ended April 3, 1999 present the effects on Polo's historical financial
statements of the acquisition of Club Monaco as if it had occurred at
the beginning of the period.


Polo Ralph Lauren Corporation
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

Fiscal Year Ended
-----------------------------------
April 1, April 3, April 3,
2000 1999 1999
Actual Pro Forma(1) Actual
----------- ----------- -----------

Wholesale Net Sales $ 878,395 $ 845,704 $ 845,704
Retail Net Sales 833,980 751,672 659,352
----------- ----------- -----------
Net Sales 1,712,375 1,597,376 1,505,056
Licensing Revenue 236,302 208,009 208,009
Other Income 6,851 13,794 13,794
----------- ----------- -----------
Net Revenues 1,955,528 1,819,179 1,726,859

Cost of Goods Sold 1,002,390 948,842 904,586
----------- ----------- -----------
Gross Profit 953,138 870,337 822,273

SG&A Expenses 689,227 654,665 608,128
----------- ----------- -----------

Income From Operations 263,911 215,672 214,145
Interest Expense 15,025 7,716 2,759
----------- ----------- -----------

Income Before Taxes, Accounting
Change and Restructuring 248,886 207,956 211,386

Provision for Income Taxes 101,422 83,350 86,141
----------- ----------- -----------

Income Before Accounting Change
and Restructuring 147,464 124,606 125,245

Cumulative Effect of Change in
Accounting Principle, Net of Taxes 3,967 -- --
----------- ----------- -----------

Net Income Before Restructuring 143,497 124,606 125,245

Restructuring Charge, Net of Taxes -- 34,695 34,695
----------- ----------- -----------

Net Income $ 143,497 $ 89,911 $ 90,550
=========== =========== ===========

Income per Share Before Accounting
Change and Restructuring -
Basic and Diluted $ 1.49 $ 1.25 $ 1.25

Cumulative Effect of Change in
Accounting Principle, Net -
Basic and Diluted 0.04 -- --
----------- ----------- -----------

Net Income Per Share Before
Restructuring - Basic and Diluted $ 1.45 $ 1.25 $ 1.25
=========== =========== ===========

Net Income Per Share -
Basic and Diluted $ 1.45 $ 0.90 $ 0.91
=========== =========== ===========

Weighted Average Shares
Outstanding - Basic 98,926,993 99,813,328 99,813,328
=========== =========== ===========

Weighted Average Shares & Share
Equivalents Outstanding--Diluted 99,035,781 99,972,152 99,972,152
=========== =========== ===========

Supplemental information:
EBITDA $ 330,191 $ 266,002 $ 260,559

(1) The Pro Forma Consolidated Statements of Income for the twelve
months ended April 3, 1999 present the effects on Polo's historical
financial statements of the acquisition of Club Monaco as if it had
occurred at the beginning of the period.