(Bloomberg) -- Ralph Lauren Corp., the 49-year-old brand known for preppy fashion and premium prices, reported first-quarter profit that exceeded analysts' estimates as new Chief Executive Stefan Larsson's turnaround plan takes hold.
Profit was $1.06 a share, excluding some items, in the period ended July 2, the New York-based company said in a statement Wednesday. Analysts projected 89 cents a share, on average.
The results boosted optimism that Ralph Lauren will be able to revive earnings growth after two years of profit declines. The fashion house is cutting excess inventory at department stores, slashing 1,000 jobs, closing stores and hiring new executives as part of Larsson's “Way Forward” plan. The company also will refocus on its three core brands: Ralph Lauren, Polo and Lauren.
Ralph Lauren rose 3.6 percent to $98.50 at 8:07 a.m. in early trading in New York. The shares had dropped 15 percent this year through Tuesday.
To contact the reporter on this story: Stephanie Wong in New York at swong139@bloomberg.net. To contact the editors responsible for this story: Kevin Orland at korland@bloomberg.net, Paul Barbagallo
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