NEW YORK — Shares of Ralph Lauren Corp. soared Thursday after the upscale clothing company said posted better-than-expected earnings for the second quarter, a possible sign that recent changes to the business may be helping.
The New York-based company has been reorganizing its business this year to cut $110 million in annual costs to combat weaker sales. A new CEO, Stefan Larsson, begins leading the company this month. He replaced founder Ralph Lauren, who will stay on with the company as executive chairman and chief creative officer. Larsson previously worked at Gap Inc.'s low-priced brand Old Navy and before that, H&M.
Ralph Lauren reported fiscal second-quarter net income of $160 million, or $1.86 per share. The results topped Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.73 per share.
Revenue slipped 1.2 percent to $1.97 billion, beating the $1.95 billion analysts expected on average, according to FactSet.
In the current quarter, which includes the important holiday shopping season, the company said it expects revenue to rise up to 2 percent from the previous year. Analysts expected revenue to rise about 1.4 percent to $2.04 billion.
For the full year, the company expects revenue to be flat. Analysts expected revenue to dip 0.3 percent to $7.6 billion, according to FactSet.
Ralph Lauren shares jumped $18.17, or 16 percent, to $131.74 in afternoon trading Thursday.
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 http://www.zacks.com/ap/RL
Keywords: Ralph Lauren, Earnings Report