Ralph Lauren Corp., the upscale apparel company known for Polo and other brands, posted earnings that topped analysts’ estimates after a push to revamp the business and reduce expenses.
Excluding restructuring expenses and other items, earnings were $1.09 in the fiscal first quarter, the New York-based company said Wednesday in a statement. Analysts estimated about $1 on average, according to data compiled by Bloomberg.
Ralph Lauren is working to rein in costs and cope with a strong U.S. dollar. The company embarked on a global reorganization aimed at improving efficiency and profit margins. The company also has expanded into new product lines as it tries to combat heavy discounting in the U.S. and weak tourist spending.
“Our new organizational structure will allow us to make our already powerful brands even stronger, and the investments we are making today will create significant value for shareholders over the long term,” Chief Executive Officer Ralph Lauren said in Wednesday’s statement.
The shares rose as much as 5.5 percent to $130.06 in premarket trading in New York after the results were released. They had fallen 33 percent this year through Tuesday’s close.