UPDATE: Oroton Group shares plunged over 21 per cent at news its Ralph Lauren partnership ended this morning.
Oroton Group has lost the rights for Ralph Lauren Australasia, a brand which accounts for 45 per cent of group sales and 35 per cent of net profits.
Oroton Group will no longer distribute the brand in Australasia from June 30 next year, with the brand transferred to Ralph Lauren corporate after 23 years with the company.
Ralph Lauren will pay Oroton for certain inventory and store assets currently valued at $30 million.
Oroton Group said next year's results will reflect one-off costs associated with the transaction.
Oroton chief executive Sally McDonald said financial results to be announced on September 20 are not expected to be materially affected by the announcement.
"The group's like-for-like sales for fiscal 2012 were nine per cent higher, with net profit about the same as last year, at $24.8 million," McDonald said.
Ralph Lauren incurs up to 35 per cent of corporate overhead expenses for the group.
The Group plans to accelerate its recent expansion into Asia, as well as consider "other opportunities" including capital management.
Ralph Lauren has made similar moves in other markets to retain global control of its brand.
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