Ralph Lauren Posts 32% Gain in Profit

Polo Ralph Lauren Corp., a leading designer of clothing and accessories, said fiscal first-quarter earnings rose 32% on higher sales of its men’s and women’s fashions. Net income rose to $22.7 million, or 23 cents a diluted share, from $17.2 million, or 17 cents, a year earlier. Results for the period ended June 27 beat the average estimate of 21 cents of analysts polled by First Call Corp. Sales were led by a 31% increase in Ralph Lauren’s wholesale men’s and women’s clothing business and a 33% gain in licensing revenue. Total revenue rose 24% to $358.8 million from $289.7 million. Ralph Lauren also said its international and home divisions generated better-than-expected sales. The company opened several stores in the Gulf region and in Israel during the quarter, giving it access to more than 60 countries. The company said it plans to open stores in Chicago, London and other locations, though it didn’t specify how many. Shares of New York-based Ralph Lauren fell 94 cents to close at $26.31 on the NYSE.