Ralph Lauren Stock Surges on Better Than Expected Earnings
Samantha McDonald
Business Editor
Shares for Ralph Lauren Corp. are up more than 6% in Tuesday premarket trading after the fashion apparel and accessories firm posted earnings that handily topped estimates.
The New York-based company’s adjusted earnings per share came in at $2.86, compared with analysts’ forecasts of $2.45, on profits that totaled $216.8 million. Sales rose 1% to $1.8 billion versus consensus bets of $1.72 billion.
The company said it saw improvements across all regions, led by Europe and Asia at respective revenue growths of 3% to $438 million and 5% to $290 million. North America inched slightly to $911 million, with overall comps climbing 4% as gains in brick-and-mortar store and e-commerce were partially offset by wholesale revenues.
“Over the important holiday season, our teams consistently executed across each of our strategic priorities, enabling us to elevate our brand and deliver for our consumers across every touch point,” said President and CEO Patrice Louvet.
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Ralph Lauren has been in the midst of a business transformation that involves new digital partnerships, increased marketing investments, core product development and other efforts.
In a statement, the company affirmed that it was making “strong progress” with its so-called Next Great Chapter plan. It also continued to expect fiscal 2020 revenues to jump 2% to 3%, despite ongoing disruptions in Hong Kong and the impact of tariffs. Its prediction did not include impact from the coronavirus outbreak.
“Creating style that endures and inspires our consumers guides everything we do,” said Executive Chairman and CCO Ralph Lauren. “I am encouraged by how our global teams continue to deliver on this mission as we elevate our iconic brand all over the world.”
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