Ralph Lauren Corp.’s shares continued their upward climb in early-morning trading Wednesday — up nearly 8 percent as of 10:10 a.m. ET — after the company posted Q1 results that significantly topped forecasts.
While the company posted a net loss of $31 million, or 27 cents per share, compared with net income of $96 million, or 73 cents per diluted share, in the year-ago same period, its adjusted results were well above estimates. Ralph Lauren said its Q1 adjusted diluted earnings per share were $1.06, compared with $1.09 in the same period a year ago. Analysts had predicted Q1 diluted EPS of 89 cents.
Revenues remained fairly flat year over year, at $1.6 billion, but beat analysts’ estimated of revenues of $1.5 billion.
Ralph Lauren CEO Stefan Larsson — who joined the firm in November 2015 from Old Navy — credited his “Way Forward” plan for much of the company’s recent success.
“We have made progress in a number of areas — from strengthening the leadership team to starting to improve the product and assortment building, to starting to cut lead times [and] improving our sourcing to execution in [certain] regions and cost initiatives,” Larsson said. “I’m excited to see our teams taking the challenges head on, and we believe the company is again moving in the right direction.”
Larsson noted that many of the tenets in his aggressive plan — which he laid out at an investor day in June 2016 — took effect within the recent quarter. The strategy includes 50 store closures, 1,000 job cuts and estimated savings of up to $220 million.
The company maintained its FY17 guidance.