Ralph Lauren drills into supply chain to cut costs

Polo Ralph Lauren’s “resilient” Q1 profit margins were partly down to its decision to increase the use of ocean freight and consolidate shipments at production sites.

The clothing giant’s Q1 net income for fiscal year 2010 fell 19% to US$77m, but it improved its gross profit margin.

“In addition to strong sales group performance, the higher gross profit rate is also the result of supply chain initiatives which have allowed us to move more product via lower cost modes of transport and have therefore yielded freight savings on our inbound inventory,” said CFO Tracey Travis.