Shares rose more than 5 percent in premarket trading.
 Image : Ralph Lauren |
The clothing maker, whose brands include Polo, Club Monaco and Chaps, said revenue rose 17.2 percent over its third quarter ended December 31, to $1.81 billion, above analysts forecasts of $1.75 billion, according to Thomson Reuters I/B/E/S.
Ralph Lauren now expects sales in the fiscal year ending next month to be up 20 percent, compared with a prior forecast of a rise in the high teens or low 20-percent range.
Despite the rising sales, its net income rose only 0.4 percent to $169 million, or $1.78 per share, hurt by higher product costs. But that was enough to beat Wall Street expectations of $1.67 per share.
Gross margin continued to be under pressure, falling 1.5 points to 57.1 percent of sales.
Shares were up 5.2 percent to $165.26 in premarket trading.
(Reporting By Phil Wahba in New York; Editing by Gerald E. McCormick)