From what I have read Ralph Lauren is focusing on China to expand but it needs to improve its image their as a high end brand. It recently bought out its license in China off Dickson. RL derives most of its revenue from north America and Europe, in Europe it is feeling the pinch from the eU crisis. It makes sense to extend its license with ORL as using a license partner allows Ralph to expand its geographic presence without undertaking significant capital expenditures. The A/NZ accounts for an immaterial portion of RL global sales revenue of US$1.6billion last qtr. that puts it into perspective. We shall see what is announced tomorrow.
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