Polo Ralph Lauren (RL) reported better than expected third quarter 2011 earnings results. The quarterly earnings of $1.72 per share surpassed the Zacks Consensus Estimate of $1.28 and rose 56.4% from the prior-year quarter on the heels of a strong top-line and better margin performance.
The company leverages its sturdy array of globally renowned brands and their premium positioning to bolster its well-established business in the specialty retailing sector. Moreover, management’s initiatives to capitalize on opportunities in Asia and reduce long-term debt augur well for future operating performance.
Further, management expects revenue to increase in the low double-digit range and has revised upward its operating margin guidance by 50 basis points (bps). Currently, we maintain an Outperform recommendation on the stock.
POLO RALPH LAUR (RL): Free Stock Analysis Report
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