Polo Ralph Lauren
reported a decline in first-quarter earnings but said its full-year profit should beat estimates. The announcement sent the clothing designer's shares higher Wednesday.
Using generally accepted accounting principles, the company earned $5.1 million, or 5 cents a share, down from $6.5 million, or 7 cents a share, a year earlier.
The company earned $3.6 million, or 4 cents a share, on an adjusted basis, compared with earnings of $8.7 million, or 9 cents a share, last year. Analysts were expecting 4 cents a share. Polo said the results in the first quarter excluded a gain on foreign currency translation of $2.3 million.
Shares of Polo were recently up 7.7% at $26.98.
Revenue in the quarter totaled $477.7 million, up 2.3%, and was helped by double-digit increases in total retail sales and licensing growth, Polo said.
Looking ahead, the company forecast second-quarter adjusted earnings of 57 cents to 63 cents a share and full-year adjusted earnings of $1.95 to $2.05 a share on a "modest" revenue increase. The company earned 52 cents a share in the second quarter last year on an adjusted basis. Last year's full-year earnings were $1.85 a share.
Analysts are expecting 58 cents a share in the second quarter and $1.94 for the year.