Ralph Lauren posted a 27 percent increase in its fiscal third-quarter profit as the clothing company enjoyed continued momentum in spending among affluent US shoppers and improving trends in Europe during the winter holidays.
The news lifted Lauren stock 6 percent yesterday.
The results are an improvement from the first half of the year, when cotton costs soared and the company was bearing costs to eliminate some of its businesses to focus on the most profitable ones. But the company managed to navigate through the rough patches and delivered better-than-expected results.
Lauren’s performance also shows that even in challenging times, the affluent will spend on trusted brands.
The New York-based company said it earned $215.7 million, or $2.31 per share, in the three months ended Dec. 29. That compares with $169 million, or $1.78 per share, a year earlier.
Revenue rose 2.2 percent, to $1.79 billion.
Analysts had expected earnings of only $2.20 per share on revenue of $1.85 billion.