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Ralph Lauren's quarterly revenue, profit beat estimates
[NEW YORK] Ralph Lauren Corp's quarterly revenue and profit beat Wall Street estimates on Thursday, as it kept costs low and sold more full-price apparel that lifted margins.
The company's adjusted gross margins rose 3 per cent and revenue per unit sold across its stores rose 5 per cent in the second quarter compared to a year earlier.
Shares of the New York-based company rose nearly 3 per cent at US$92 before the bell on Thursday.
The company also raised the lower-end of its 2018 operating margin forecast to 9.5 per cent to 10.5 per cent from its previous expectation of 9 per cent to 10.5 per cent.
The company's net income rose to US$143.8 million or $1.75 per share in the second quarter ended Sept. 30, from US$45.7 million or 55 cents per share, a year earlier.
Ralph Lauren took a US$150 million charge on a slew of restructuring initiatives in the year-ago quarter.
The company's profit in the latest quarter before one-time charges beat estimates of US$1.89 by 10 cents.
Revenue fell 9 per cent to US$1.67 billion, hurt in part by its decision to pull back from department stores and factory outlets. Analysts on average had expected US$1.65 billion, according to Thomson Reuters I/B/E/S.