Shares of Ralph Lauren Corp. hiked up 2.6% in premarket trade, after the apparel and accessories seller reported fiscal second-quarter profit and sales that beat expectations. Earnings for the quarter to Oct. 1 fell to $45 million, or 55 cents a share, from $160 million, or $1.86 a share, in the same period a year ago. Excluding non-recurring items, such as one-time restructuring charges, adjusted earnings per share came to $1.90, above the FactSet consensus of $1.71. Revenue fell to $1.82 billion from $1.92 billion, but beat the FactSet consensus of $1.81, as better-than-expected retail revenue offset less-than-expected wholesale and licensing revenue. For the fiscal third quarter, revenue is expected to decline in the low-double-digit to low-teens percentage range, while the FactSet consensus of $1.71 billion implies a 12% decline. The company expects its fiscal 2017 restructuring plan to result in charges of $400 million, and cost savings of $180 million to $220 million. The stock has dropped 8.4% year to date through Wednesday, while the SPDR Consumer Discretionary Select Sector ETF has gained 1.1% and the S&P 500 has climbed 5.8%.
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