Ralph Lauren Stock Surges As Profit Beats Expectations

Ralph Lauren Corp. shares were up 4% Wednesday after the company reported fiscal first-quarter earnings Wednesday of $64 million, or 73 cents per share, down from $162 million, or $1.80 per share, in the year-earlier period. Excluding restructuring and non-cash charges, Ralph Lauren reported earnings per share of $1.09. Analysts surveyed by FactSet expected, on average, earnings per share of 99 cents. The company reported sales of $1.62 billion, down from $1.71 billion a year ago, but above the FactSet consensus of $1.61 billion. Same-store sales were down 8% from the year-earlier period. Ralph Lauren is in the process of transitioning to a "new global brand management organizational structure and said it expects restructuring charges of $70 million to $100 million, with $45 million already coming in the first quarter. For the second quarter, Ralph Lauren expects net revenues to be up 3% to 5% but affected by foreign currency exchanges. The stock, which surged 4.4% in premarket trade, has dropped 33% year to date through Tuesday, while the S&P 500 has gained 1.7%.