Clothing designer Polo Ralph Lauren Corp. (NYSE: RL) posted a better than expected profit for its fiscal fourth quarter on Wednesday, citing strong sales in Europe and the United States.
Net income rose 17 percent to $73.2 million, or 68 cents per share, compared to $62.5 million, or 58 cents a share a year earlier. Revenue also rose 6 percent to $1.03 billion.
Analysts, on average, expected 62 cents on revenue of $1.03 billion, according to Thomson Financial.
â€œWe performed extremely well on a number of our initiatives which has enabled us to strengthen our operational foundation and to build a stronger, more financially robust company,â€ said Roger Farah, President and Chief Operating Officer.
Revenue grew on a 10 percent increase in wholesale buys and a 3 percent increase in retail sales. The company also acquired Polo Jeans during the year, which partially offset retail figures due to decreased royalties.
For the full year, net income grew to $401 million, or $3.73 per share, on revenue of $4.3 billion.
It expects full-year 2008 revenue to increase in the mid-teen range.
Looking ahead, we will strive to build on the success we have enjoyed this past year and will continue to focus on creating shareholder value,â€ Ralph Lauren, Chairman and CEO, said in a statement.
Shares of Polo Ralph Lauren rose 0.36, or 0.39 percent to $93.64 in mid-day trading on the New York Stock Exchange.