In difficult economic conditions, the results are impressive for a company that profits from selling high-end products, ranging from clothes and accessories to fragrance and home furnishings. The luxury products have higher margins, which allow additional dollars to fall to the bottom line. Finally, it improved its infrastructure with management changes over the past year, and eliminated under-performing stores. In Q4, Polo closed 11 of its Club Monaco stores, which it acquired in April 1999. If there were one factor to attribute the results to, it's Polo's powerhouse brand, which is a competitive advantage in any industry, but even more so in retail.
People are more than willing to pay a few extra bucks for a shirt that's visibly Polo.
Mike Trigg worked at a Polo Ralph Lauren store in high school. His holdings can be viewed in his personal profile . The Motley Fool is investors writing for investors . The Motley Fool. All rights reserved.