NEW YORK — Ralph Lauren swung to a profit in its fiscal first quarter as the prior-year period was weighed down by a hefty charge.
Shares climbed more than 4 percent before the market open on Tuesday.
The results of Ralph Lauren and Michael Kors Holdings Ltd. gave a lift to the luxury retail sector, with shares of companies like Coach Inc. and Tiffany Inc. rising in premarket trading.
For the period ended July 1, Ralph Lauren Corp. earned $59.5 million, or 72 cents per share. A year earlier the New York-based clothing company lost $22.3 million, or 27 cents per share. The year-ago period was hurt by restructuring-related inventory charges of $54 million. Restructuring charges for the current period were $700,000.
Stripping out restructuring costs, earnings for the current period were $1.11 per share. That easily topped the 96 cents per share that analysts surveyed by Zacks Investment Research expected.
Revenue dropped to $1.35 billion from $1.55 billion, impacted in part by lower consumer demand and the company’s decision to reduce shipments and decrease promotions.
Ralph Lauren still anticipates fiscal 2018 revenue will fall 8 percent to 9 percent. For the second quarter, it predicts revenue will decline 9 percent to 10 percent.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on RL at https://www.zacks.com/ap/RL
Keywords: Ralph Lauren, Earnings Report