May 12, 2016
New stores, e-commerce help Ralph Lauren beat revenue estimates
May 12, 2016
Luxury fashion retailer Ralph Lauren Corp reported better-than-expected fourth-quarter revenue and profit, helped by an extra week in the quarter this year, new stores and growth in online sales.
Shares of Ralph Lauren, whose brands include Polo Ralph Lauren and Club Monaco, were up 4.1 percent at $88.00 in premarket trading on Thursday.
Ralph Lauren has been spending on its e-commerce business, expanding distribution in China, and restructuring its business to better react to fashion trends.
The company has also been expanding its product portfolio to include women's clothing under its Polo brand and has launched a new line of sport and outdoor clothing.
However, sales at stores open for at least a year fell 6 percent. Analysts on average had expected a 5.1 percent decline, according to Consensus Metrix.
Ralph Lauren's net income fell to $41 million, or 49 cents per share, in the quarter ended April 2, from $124 million, or $1.41 per share, a year earlier.
The decline in net income was primarily due to higher selling, general and administrative costs and a $45 million impairment and restructuring charge.
Excluding items, the company earned 88 cents per share, above the average analyst estimate of 83 cents, according to Thomson Reuters I/B/E/S.
Revenue fell 1 percent to $1.87 billion, but came in above analysts' average estimate of $1.86 billion.
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