Ralph Lauren's quarterly profit rises 83 percent

Ralph Lauren Corp reported better-than-expected quarterly profit and revenue on Tuesday, as the luxury apparel maker sold more products at full price and kept a tight grip on costs.

Shares of the company, known for its preppy Polo shirts that convey a country-club chic, were up nearly 2 percent before the bell, set to add to their over 30 percent gain this year.

The New York-based company, like peers Tapestry Inc and Calvin Klein-owner PVH Corp, has pulled products off department store shelves, where they were discounted heavily, to regain its status as a premium brand.

Ralph Lauren also has focused on its core brands, cut jobs, reduced excess inventory and shut underperforming stores, while also pushing its supply chain to bring the latest fashion to stores faster.
These have helped boost the company’s margins. Gross margins increased 120 basis points, while average revenue per unit sold rose 8 percent in the first quarter from a year earlier. Net income jumped to $109 million, or $1.31 per share, in the three months ended June 30, from $59.5 million, or 72 cents per share, a year earlier, also helped by a lower tax rate.

Excluding certain items, the company earned $1.54 per share, going past analysts’ average estimate of $1.36, according to Thomson Reuters I/B/E/S. Revenue rose 3.2 percent to $1.39 billion, the first increase in at least 13 quarters, also topping estimate of $1.36 billion.