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Polo Ralph Lauren 4Q Profit Falls On Charges

The Associated Press

NEW YORK (AP) — Polo Ralph Lauren Corp. said Wednesday that its fiscal fourth-quarter profit dropped 57 percent, weighed down by restructuring and impairment charges and higher expenses. Still, adjusted results handily beat analysts' estimates.

The apparel maker also declined to give a fiscal 2010 earnings forecast, citing current economic conditions.

Polo Ralph Lauren earned $44.5 million, or 44 cents per share, for the period ended March 28. That compares with $103.5 million, or $1 per share, a year ago.

Excluding $69 million in restructuring and impairment charges, net income was 86 cents per share. The company said the restructuring charge accounted for store closings and the elimination of about 500 workers.

Analysts polled by Thomson Reuters expected profit of 40 cents per share. Analysts' estimates normally exclude one-time items.

Selling, general and administrative expenses climbed to $594.9 million from $530.2 million.

Sales dipped 2 percent to $1.22 billion from $1.24 billion to top Wall Street's estimate of $1.09 billion.

Same-store sales slid 15.9 percent in the quarter. At its Ralph Lauren stores, same-store sales sagged 29.3 percent. Same-store factory store sales fell 8.8 percent, while Club Monaco stores reported a 20.8 percent same-store sales decline.

For the year, earnings fell 3 percent to $406 million, or $4.01 per share, from $419.8 million, or $3.99 per share, in the previous year. Adjusted earnings were $4.50 per share. The per-share discrepancy is due to fewer shares outstanding in the current year.

Annual sales grew 3 percent to $5.02 billion from $4.88 billion.

Polo Ralph Lauren anticipates a high single digit sales decline in fiscal 2010. Analysts expect full-year sales of $4.68 billion.

Shares rose $3.31, or 6 percent, to $57.69 in morning trading.