Ralph Lauren Corp. (NYSE: RL) today reported a sharp rise in its fourth-quarter earnings, driven by strong sales and a lower tax rate. The New York City-based company also doubled its quarterly dividend, sending shares sharply higher in trading today.
RL shares rose to an intra-day high of $161.30, and at last check, the stock was trading 3.14% higher at $150.90 on above average volume of 3.33 million.
Ralph Lauren, which designs, markets and distributes apparel, accessories, fragrances and home furnishings, reported fourth-quarter net income of $94.4 million, or $0.99 per share, compared with $73.2 million, or $0.74 per share reported for the same period in the previous year. Analysts were expecting the company to report earnings of $0.85 per share for the fourth quarter ended March 31, 2012.
Revenue for the quarter rose 13% to $1.62 billion, driven by higher wholesale and retail sales. Analysts were expecting RL to report revenue of $1.6 billion for the quarter.
For the full fiscal year, Ralph Lauren reported net income of $681 million, or $7.13 per share, compared with $567.6 million, or $5.75 per share reported in the previous fiscal year. Revenue climbed 21% for the full year to $6.86 billion.
Chairman and CEO Ralph Lauren said that fiscal 2012 was another year spectacular growth for RL. Lauren said that the company made significant progress with its international expansion efforts and launched exciting new products during the year. Lauren added that he is thrilled with the momentum RL is gaining with its handbags worldwide.
Following the strong results, Ralph Lauren raised its quarterly dividend to $0.40 per share. The dividend will be payable on July 13 to shareholders of record on June 29.
Looking ahead to fiscal 2013, Ralph Lauren expects a mid-single-digit percentage increase in revenue.
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