Earnings rise slightly at Ralph Lauren

NEW YORK, May 22 (UPI) -- Clothing designer and retailer Polo Ralph Lauren Corp. said its adjusted net income for the fourth quarter, which ended March 30, rose to $44.2 million, or 45 cents a diluted share, from an adjusted net income of $43.1 million, or 44 cents a diluted share during the same period last year.

The latest results excluded the effect of the change in timing for the consolidation of the company's European operations, a real estate reserve charge and foreign currency gains.

Last year's results excluded restructuring and special charges and foreign currency gains.

Including the charges, the company said its fourth-quarter net income was $48.0 million, or 48 cents a diluted share compared to $47.5 million, or 48 cents a diluted share a year ago.

Analysts on Wall Street had expected the company to post a net income of 44 cents a share, according to Thomson Financial/First Call.

The company, which markets several variations of the Polo and Ralph Lauren brands and operates the Club Monaco retail chain, said its sales for the quarter rose 3.3 percent to $556.3 million from $538.5 million a year ago.

Ralph Lauren, chairman and chief executive officer, said, "Despite a difficult environment, I am pleased we produced record profits this year. Our results reflect the strong global appeal of the Polo Ralph Lauren brands."

Roger Farah, president and chief operating officer, said, "As consumer uncertainty persists, our outlook for the first half of this fiscal year remains conservative. We continue to believe our decision to sell in the appropriate amounts of product domestically, and to seek sales growth internationally is the correct decision for our wholesale business."

As previously stated in April, the company said it expects fiscal 2003 diluted earnings per share in the range of $1.80 to $1.90 driven by mid-single digit revenue growth on adjusted net revenues and improvements in operating margins and ongoing inventory improvement.

For the first half of fiscal 2003, the company expects earnings to be 50 to 60 cents a share.