Discounting less is paying off for Polo.
Before the market opened on Tuesday, Aug. 8, Ralph Lauren Corp. (RL - Get Report) , the apparel and accessories designer, distributor and retailer, reported first-quarter adjusted earnings of $1.11 a share, beating the earnings of 95 cents a share analysts surveyed as Factset expected.
In late afternoon trading, shares of Ralph Lauren were up 9.35%.
Still, Ralph Lauren reported total revenue plunged 13% to $1.35 billion, still better than Wall Street's estimates for $1.34 billion. In North America, revenue declined 17%.
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On July 17, Ralph Lauren introduced new CEO Patrice Louvet. The company's former CEO, Stefan Larsson, left in May, citing creative differences with Ralph Lauren, the founder, chairman and chief creative officer.
"I am thrilled to welcome Patrice Louvet as my partner to continue the exciting evolution of our company," Lauren said in a statement on Tuesday.
"As you can see in this quarter's results, we're making good progress with setting a strong foundation for future growth," Louvet said on a company earnings call with analysts.
In what appeared to be a jab at Larsson, Louvet reiterated that he is at the company to "lead the strategy, execution and business results," while Lauren is "in charge of the creative brand aesthetic decisions."
"To start, I've long admired Ralph and I am honored to partner with him," Louvet said. "People who know me well describe me as a builder of both friends and teams, building up people and teams to accomplish amazing things motivates me. I believe this is one reason Ralph and I click."
In addition, Jane Nielsen, Ralph Lauren chief financial officer, said on the call that the company began reducing its shipments to off-price retailers and closing underperforming locations in the first quarter. Nielsen said Ralph Lauren is "on track" to close 20% to 25% of its department stores in the U.S. by the second half of 2018.
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