RL reported net income for the quarter increased 51% to $168 million compared to Q3 of FY2010. This resulted in $1.72 earnings per diluted share, which beat analysts’ estimates of $1.28 per share. Third quarter revenues also grew 24% to $1.5 billion while comparable store sales increased by 15%. The Board also announced an increase in the regular quarterly cash dividend to $0.20 per share from $0.10 per share and authorized a $250 million stock repurchase program, reflecting its confidence in the company’s future prospects.
Analysts at Citigroup upgraded shares to a “buy” rating with a $138 price target. After releasing their earnings, RL experienced unusually high trading volume on Friday, with an increase of 19.41% in trading volume from the previous session
Moody’s stated that RL had “stronger than expected resilience” during the recession with its expanding international presence, especially in Asia. A further upgrade is possible if RL is able to continue growing while reducing its reliance on its US department store channel.
RL reported that its second quarter revenues grew 11% to $1.5 billion compared to the same period a year ago. Its net income also increased 15% to $205 million while operating income rose 25% to $307 million. Net revenues increased 11% to $1.5 billion due to higher global wholesale and retail sales.
The unexpected surge in retail sales and department-store traffic in March caught Wall Street by surprise and Polo Ralph Lauren could be one company that benefits greatly from this. Since the recession hardly made a dent in its upward sales progress, Polo should have tremendous leverage in advancing in the economic recovery that's increasingly gaining traction. In the past month many analyst have been predicting a increase in its stock price.
RL stock is plunging despite better-than-expected third-quarter results, as it warns its Asian investments could suppress fourth-quarter earnings. Polo said it now expects 2010 revenue to decline by a low-single-digit rate. It previously forecast a mid-single-digit rate decline. The company also said its Asian operations would hurt profit by 8 cents to 10 cents a share in the fourth quarter.
During fiscal Q2 2010, ended Sep. 26, 2009, RL's net income rose 10% to $178 million, or $1.75/share, compared to $161 million from a year earlier. Revenues declined 4% to $1.37 billion. Analysts originally expected $1.32/share for the quarter. The company attributes the higher earnings from gains in market share earlier in the year as well as high-growth international market and online revneues.
RL announced a quarterly cash dividend of $0.10/share of common stock, an increase from $0.05/share from last quarter. The company also added $225 million to its stock repurchase plan.
RL announces quarterly dividend of $0.05 per share, payable on April 10, 2009.
2nd quarter fiscal profit increased by 40%, which is unusual for a retail company given the current state of the economy. International and outlet sales helped make up for lagging U.S. sales. However, the company has decreased its full-year sales outlook to a low single digit increase from a low-to-mid single digit increase, meaning the company expects flagging sales in the United States luxury market to continue to be a big influence on its balance sheet.
Polo Ralph Lauren announced that it will launch a mobile commerce (m-commerce) site so that customers can shop for Polo merchandise from their cell phones.
Polo Ralph Lauren reported a 4% increase in total revenue to $1.11 billion during the first quarter of fiscal 2009. Net income rose 7.8% for net earnings per share of $0.93, while analysts had been expecting $0.72.
Polo Ralph Lauren reported fourth quarter and full year performance for fiscal 2008 on May 28, 2008. The company reported a 41% increase in quarterly net income for $1.00 earnings per share for the quarter, while analysts had been expecting EPS of $0.65.
RL post quarterly earnings of 82 cents per share vs. ananlysts' estimates of 85 cents. The company blamed the miss on a higher tax rate.
Levi's files a lawsuit against Polo claiming the sportswear company copied its trademark stitching.