New York City Polo Ralph Lauren Corp. said Wednesday that its fiscal second-quarter profit jumped a better-than-expected 40%, after gains in Europe and its discount outlets helped to make up for lower U.S. department store demand.
Net income in the quarter rose to $161 million from $115 million a year earlier, said the company, which owns its namesake chain as well as Rugby and Club Monaco locations. Revenue in the quarter ended Sept. 27 rose 10% to $1.43 billion from $1.30 billion.
Polo Ralph Lauren, which has bought back its European and Japanese licensees to take control over its business overseas, said it will stick to its strategy of expanding globally.
Second-quarter wholesale sales, or sales to department stores and other retailers, rose 10% to $846 million, after new product shipment and higher European sales helped make up for lower U.S. shipment of men's, women's and children's products.
Retail sales rose 12% to $531 million, with sales at stores open at least a year rising 5.1%. Ralph Lauren same-store sales edged up 0.3%. Factory discount outlets saw same-store sales climb by 8.2%. At Club Monaco, sales dropped 3.7%. The company had 328 stores at the end of the quarter.