Polo Ralph Lauren Posts 8 Percent Increase In Q1 Profits

New York, NY (AHN) - Polo Ralph Lauren has bucked the trend in the retail apparel space, posting a better than expected profit for the second straight quarter sparked by strong sales at its retail stores.

The apparel maker said Wednesday that fiscal first quarter profit rose 8 percent to $95.2 million or 93 cents a share, compared with $88.3 million or 82 cents a share in the same period a year ago. Revenue rose to $1.11 billion, up 4 percent from $1.07 billion last year.

Earnings were above analyst expectations of 72 cents a share while revenue fell short of the $1.17 billion analysts expected, according to Thomson Financial.

"Our first quarter results not only attest to the global desirability of our brands and products, but also to the fact that we are innovating, executing and merchandising at a higher and better level than ever before," said President and CEO Roger Farah, according to Business Wire.

Retail operating income rose 6 percent to $67 million while licensing operating income rose 11 percent to $24 million. However, total operating margin was down 40 basis points to 13.2 percent.

The company also benefited from the effect of a lower 35 percent tax bracket in the first quarter compared to a tax rate of 39 percent in the first quarter of 2008.

Polo Ralph Lauren raised its fiscal 2009 earnings outlook to a range of $4 to $4.10 a share, up from earlier estimates of $3.95 to $4.05 a share. Analyst estimates are for $3.98 a share.

Shares of Polo Ralph Lauren closed 7 percent higher on Wednesday to $65.86.