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Shares of Ralph Lauren up as 2Q results top expectations, 3Q revenue forecast beats consensus


NEW YORK — Shares of 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, , begins leading the company this month. He replaced founder , 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.

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.

shares jumped $18.17, or 16 percent, to $131.74 in afternoon trading Thursday.


Elements of this story were generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on RL at


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