Polo Ralph Lauren Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Polo Ralph Lauren Corporation (NYSE:RL) reported net income above Wall Street’s expectations for the first quarter. Polo Ralph Lauren Corp. designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings.

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Polo Ralph Lauren Earnings Cheat Sheet for the First Quarter

Results: Net income for Polo Ralph Lauren Corporation rose to $184.1 million ($1.90 per share) vs. $120.8 million ($1.21 per share) in the same quarter a year earlier. This marks a rise of 52.4% from the year earlier quarter.

Revenue: Rose 28.9% to $1.49 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: RL beat the mean analyst estimate of $1.45 per share. It beat the average revenue estimate of $1.43 billion.

Quoting Management: “We are a world-class Company that has been built on quality and timeless design with a long-term view,” said Ralph Lauren, Chairman and Chief Executive Officer. “The clarity of our luxury lifestyle positioning runs through all that we do, from design to marketing to our in-store presentations. We are leveraging this clarity of vision and purpose with an expanding range of merchandise and store environments around the world. We know our customers well and we are committed to offering them the best of the World of Ralph Lauren.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 6.7% to $1.43 billion in the fourth quarter of the last fiscal year. The figure rose 24.4% in the third quarter of the last fiscal year from the year earlier and climbed 11.5% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 76 cents per share.

Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margin rose 0.2 percentage point to 62% from the quarter earlier quarter. In the third quarter of the last fiscal year, the figure rose 2.3 percentage points to 56.8% from the year earlier quarter.

The increase in profit last quarter comes after net income fell in the previous quarter. In the fourth quarter of the last fiscal year, net income declined 35.8% to $73.2 million.

Competitors to Watch: Liz Claiborne, Inc. (NYSE:LIZ), The Warnaco Group, Inc. (NYSE:WRC), Maidenform Brands, Inc. (NYSE:MFB), Jones Apparel Group, Inc. (NYSE:JNY), Nordstrom (NYSE:JWN), Guess?, Inc. (NYSE:GES), Coach, Inc. (NYSE:COH),  Phillips-Van Heusen Corp. (NYSE:PVH), V.F. Corporation (NYSE:VFC). Frederick’s of Hollywood Group Inc. (AMEX:FOH), Vera Bradley, Inc. (NASDAQ:VRA), Tiffany & Co. (NYSE:TIF), Fossil, Inc. (NASDAQ:FOSL), Piquadro S.p.A. (NYSE:PQ), Wet Seal (NASDAQ:WTSLA), Abercrombie & Fitch (NYSE:ANF), Gap (NYSE:GPS), Express (NYSE:EXPR), Urban Outfitters (NASDAQ:URBN) and Limited Brands (NYSE:LTD)

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(Source: Xignite Financials)

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