Ralph Lauren tops estimates as margins improve

Earnings


Christopher Dilts | Bloomberg | Getty Images

Customers exit a Ralph Lauren Corp. store in downtown Chicago, Illinois.

Ralph Lauren on Wednesday reported a higher-than-expected quarterly profit, as the luxury apparel maker’s move to pull products off department store shelves and sell more products at full-price boosted margins.

The company’s shares rose 3 percent in premarket trading.

Ralph Lauren said adjusted gross margin was 59.8 percent in the fourth quarter, a 440 basis point rise from a year earlier.

The New York-based company reported net income of $41.3 million, or 50 cents per share, in the quarter ended March 31, compared with a loss of $204 million, or $2.48 per share, a year earlier.

The company incurred $322 million in restructuring charges in the year-ago quarter.

Ralph Lauren said same-store sales on constant currency basis fell 1 percent, but less than the 2.3 percent fall expected by analysts, according to Consensus Metrix.

Excluding items, the company earned 90 cents per share. Analysts on average had expected a profit of 83 cents per share, according to Thomson Reuters I/B/E/S.

Net revenue fell 2.3 percent to $1.53 billion, but was above the average analyst estimate of $1.48 billion.



Source link

Products You May Like

Articles You May Like

Russia cuts Treasury holdings in half as foreigners start losing appetite for US debt
All global currencies will become cryptocurrencies, Circle CEO says
6 purchases you’ll regret putting on plastic
What you would net now if you invested in FANG stocks in 2014
Here’s why Google and Amazon probably will never be included in the Dow

Leave a Reply

Your email address will not be published. Required fields are marked *