RL - Ralph Lauren stock rises as pricing moves lift quarterly results

Ralph Lauren ( NYSE: RL ) shares rose sharply after the company reported stronger than expected earnings results on Thursday.

For the fiscal third quarter, the New York-based apparel maker posted $3.35 in earnings per share and $1.83B in revenue. Analysts had anticipated $2.93 and $1.76B, respectively. Same store sales rose 5% after accounting for currency impacts, far exceeding the 0.16% consensus. The company noted that adjusted gross margins expanded 300 basis points year over year, driven by pricing actions.

“Our core consumer remains resilient and our iconic products are resonating around the world — evidenced by our strong third quarter and year-to-date performance,” CEO Patrice Louvet commented. “While we remain very attuned to the dynamic global operating environment, the breadth of our portfolio of products and our multiple engines of growth create the flexibility that will enable our teams to continue to be agile, adapt and deliver even in this challenging backdrop.”

For the full-year, the company continues to expect constant currency revenues to increase about 8% from the prior year. Revenue is also expected to decrease 100 basis points based upon the absence of a 53rd week in the current fiscal year.

Currency fluctuations are expected to affect a 600 basis point negative impact on full-year earnings results, improved from a prior expectation of a 730 basis point impact. Gross margin is expected to be about flat in constant currency year over year. Inventories increased about 33% year over year.

Management also trimmed capital expenditure forecasts for the year to $240M to $250M, down from a prior guide of $290M to $310M.

Shares of Ralph Lauren ( RL ) rose as much as 5% in premarket trading before moderating gains to about 2.54% shortly before the market open.

Dig into the details of the earnings results .

For further details see: