OrotonGroup Limited (ASX:ORL) for twenty-three years enjoyed Australasian distribution rights to the Polo Ralph Lauren brand

OrotonGroup Limited (ASX:ORL) for twenty-three years enjoyed Australasian distribution rights to the Polo Ralph Lauren brand. This concession ended in June 2013.The loss of the Ralph Lauren brand hurt the company but management moved quickly and decisively to engage with Brooks Brothers (51% owned by Oroton) to distribute their range of high end clothing and fashion accessories in Australasia. Other brands include Oroton and GAP. In FY15 Brooks Brothers will focus on online sales, marketing and store roll outs. Oroton Group is predicting a strong rebound in earnings over the next three years, holding net cash on $10.1m with a $40m bank facility for investment in the 3 brands. At current pricing OrotonGroup represents excellent value. Consensus earnings projections suggest a Price Earnings Ratio falling from 16.0 in FY15 to 10 in FY17, with a dividend of 5.3% fully franked for FY15. Our monthly newsletter is available here: (VIEW LINK)