Ralph Lauren Beats Q4 Estimates

reported better-than-expected earnings for the fiscal fourth quarter on Wednesday. The New York-based company posted quarterly net income of $124 million, or $1.41 per share, compared to $153 million, or $1.68 per share, in the year-ago period. Excluding foreign currency impacts, the company's earnings came in at $1.69 in the fourth quarter. Its revenue gained 1 percent to $1.9 billion, while revenue climbed around 7 percent on a constant currency basis. Analysts were expecting a profit of $1.32 per share on revenue of $1.88 billion. The average estimate among 13 Estimize users was for earnings of $1.34 per share and revenue of $1.89 billion. Its comparable store sales slipped 4 percent in the quarter. Wholesale segment sales gained 2 percent to $1.0 billion in the quarter, while retail sales came in flat at $841 million. Licensing revenue fell 5 percent to $37 million in the fourth quarter. Operating expenses rose 4 percent to $854 million in the fourth quarter, while operating income shrank 15 percent to $190 million. Ralph Lauren's board approved an additional share buyback program of $500 million. Ralph Lauren ended the quarter with $1.2 billion in cash and investments, versus $1.3 billion in cash and investments at the end of the year-ago quarter. "Our better-than-expected fourth quarter results were achieved in a challenging global macroeconomic environment, showcasing the operational discipline of our teams," said Jacki Nemerov, President and Chief Operating Officer. "While foreign exchange and global consumer spending remain unpredictable, we are taking decisive actions to offset some of these ongoing external pressures. We also believe the new global brand management structure will enhance the consistency of our brand presentation around the world and generate substantial operating efficiencies." For fiscal 2016, Ralph Lauren projects consolidated net revenue to rise by mid-single digits in constant currency. Ralph Lauren projects to book restructuring charges of $70 million to $100 million in fiscal 2016. Ralph Lauren shares fell 2.78 percent to $129.50 in pre-market trading.