Tommy Hilfiger, Polo Rise on Earnings Beats

Sales surge 24% at Polo Ralph Lauren.
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Shares of Polo Ralph Lauren (RL) - Get Report and Tommy Hilfiger (TOM) were higher Wednesday as both companies delivered better-than-expected first-quarter results.

For Tommy Hilfiger, "better than expected" was still a loss of $7.6 million, or 8 cents a share, down from net income of $17 million, or 19 cents a share, a year ago. (Last year's results included an accounting change benefit. Excluding this, the company earned $9.8 million, or 11 cents a share.)

Hilfiger's sales fell 11% to $328.6 million from $367.2 million, as declines in men's, women's and children wholesale revenue in the U.S. more than offset gains in the company's European revenue.

However, the company said the results were in line with expectations, and due to the timing of the shipments, slightly better than previously forecast.

In addition, the results beat the Thomson First Call estimate of a loss of 10 cents a share on revenue of $316.9 million. The stock was recently up 22 cents, or 1.7%, to $13.51.

At Polo, earnings rose to $13.4 million, or 13 cents a share, up from $5.1 million, or 5 cents a share.

On an adjusted basis, excluding restructuring charges and foreign currency gains, earnings rose to $14 million, or 14 cents a share, from $3.6 million, or 4 cents a share, in the prior year.

On that basis, analysts were expecting 11 cents a share.

Sales rose 24.1% to $592.8 million from $477.7 million in the same period last year, as Polo cited strong brand recognition in both its Polo and Club Monaco labels, strong U.S. sales and higher-than-expected revenue from new ventures, including its Lauren for Women label.

Polo reiterated its expectations that it will earn $2.35 to $2.45 a share for the full year.

Shares of Polo were recently up 99 cents, or 3%, to $34.11.