Ralph Lauren (NYSE:RL) brightened its outlook after reporting 9.7% growth in its third-quarter profit, beating Wall Street expectations.
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The clothing designer now expects revenue to increase 7% in the current fiscal year, compared to prior guidance of 5% to 7%. For the fourth quarter, Ralph Lauren sees revenue growth of 10% to 12%.
Shares jumped 7% to $165.00 in pre-market trading. As of Tuesday’s close, the stock was down 18% over the last six months.
Ralph Lauren said Wednesday its profit rose to $237 million, or $2.57 a share, up from $216 million, or $2.31 a share. Analysts were looking for $2.51 a share.
Revenue was up 9% at $2.02 billion, while the company projected an increase of 8% to 10%.
Ralph Lauren, which owns brands including Polo and Club Monaco, reported stronger wholesale demand and improved sales at its own stores. Retail sales climbed 6% to $1.13 billion, and same-store sales ticked 1% higher, or 2% excluding currency impacts.
The company saw wholesale sales leap 15% to $840 million, citing North American merchandise strength, improved trends in Europe and transitioned Chaps men’s sportswear operations.
Also on Wednesday, Ralph Lauren’s board approved a new $500 million stock buyback for a total repurchase program of $730 million.