Polo Ralph Lauren Boosts Sales Forecast for the YearIan Thomson
Polo Ralph Lauren Corp., the New York-based seller of the namesake brand clothing, raised its sales projection for the year as customers snapped up footwear and apparel.
Sales will increase at “a low double-digit” rate, the company said today in a statement. In August, the company projected a “mid-to-high single-digit” rate. Net income in the quarter ended Oct. 2 climbed 16 percent to $205.2 million, or $2.09 a share, from $177.5 million, or $1.75, a year earlier.
Revenue climbed 11 percent to $1.53 billion, fueled by the wholesale business in the U.S. and Europe. Consumers are beginning to spend again as they recover from the worst economic slump in about 70 years. Ralph Lauren, led by its namesake chief executive officer, gets about 70 percent of sales from North America.
Polo Ralph Lauren surged $7.36, or 7.3 percent, to $108.28 at 4 p.m. in composite trading on the New York Stock Exchange, making it the biggest gainer in the Standard & Poor’s 500 Index. The increase was the largest in three months.
Analysts on average projected quarterly profit of $1.69 a share on sales of $1.49 billion, according to estimates compiled by Bloomberg.
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