Executive Business Briefing

Here is a look at more of Wednesday's top business stories:

Earnings rise slightly at Polo Ralph Lauren

NEW YORK, May 22 (UPI) -- Clothing designer and retailer Polo Ralph Lauren Corp. said its adjusted net income for the fourth quarter 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.

Earnings rise 10 percent at Tech Data

CLEARWATER, Fla., May 22 (UPI) -- Computer hardware and software distributor Tech Data Corp. said its first quarter net income rose 10 percent to $35.1 million, or 60 cents a share, from $31.8 million, or 57 cents a share during the same period last year.

Analysts on Wall Street expected the company to post a net income of 57 cents a share, according to Thomson Financial/First Call.

Sales fell 16 percent to $3.92 billion from $4.68 billion a year ago. The company said its first-quarter sales declined 22 percent in the United States and 8 percent in Europe.

In March, Tech Data forecast earnings between 55 cents and 60 cents a share on sales of $3.7 billion to $3.9 billion.

Steven A. Raymund, chairman and chief executive officer, said, "It's a significant achievement in this demand environment to generate a double-digit increase in year-over-year net income."

The company also said it planned to sell or close its operations in Hungary by the end of the second quarter.

Looking ahead, the company said it expects second quarter earnings at 53 cents to 58 cents a share on sales of $3.75 billion to $3.9 billion.

Albertson's to spend $1 billion for new stores

BOISE, Idaho, May 22 (UPI) -- Supermarket chain Albertson's Inc. said it plans to spend $1 billion over the next three years for new stores and remodel stores in Southern California.

The company said it would use a dual branding strategy in Southern California, combining its food brand with its Sav-On drug store name in one of the country's largest retail markets.

The nation's second largest supermarket chain already owns and operates 268 Albertson's Food Stores and 304 Sav-On Drugstores in the region.

Albertson's said the investment underscores its intent to strengthen its leadership position in this critically important region.

Larry Johnston, chairman and chief executive officer said, "Southern California is America's largest retail market. It is a strategic market of choice that our company is committed to grow and strengthen, as we drive to extend our lead as the number one food and drug retailer in the region. Now, with this major commitment, the future looks even brighter."

Peter Lynch, president and chief operating officer, said, "With this commitment, we will immediately begin to implement plans that will drive a powerful dual branding strategy utilizing a unique new Albertson's/Sav-On combination format across the region.

"Consumers in Southern California will benefit tremendously from the combination of these two powerful brand names, as we offer the best food store and the best drugstore under one roof ... while shareowners will benefit as market share grows and return on invested capital accelerates in our largest market," Lynch added.

Albertson's operates more than 2,300 retail stores in the United States, under banners including Albertson's, Jewel-Osco, Acme, Sav-on Drugs, Osco Drug, Max Foods and Super Saver.

Earnings rise 37 percent at Ross Stores

NEWARK, Calif., May 22 (UPI) -- Off-price retailer Ross Stores Inc. said its first quarter net income rose 37 percent to $47.7 million, or a record 59 cents a share, from $34.7 million, or 43 cents a share during the same period last year.

Analysts on Wall Street had expected the company to report a net income of 59 cents a share, according to Thomson Financial/First Call.

Sales rose to 22 percent to $820 million from $674 million a year ago. Sales at stores open at least a year, or same-store sales, jumped 10 percent from a year ago.

Michael Balmuth, vice chairman and chief executive officer, said, "We are very pleased with our record first quarter results, which continue to benefit from our ability to offer a wide assortment of fresh and exciting national name brand fashions at competitive discounts for the family and the home.

"The combination of a double digit increase in same store sales, healthy new store productivity and 12 percent unit growth resulted in a 22 percent increase in total sales. Operating margin expanded approximately 90 basis points during the quarter to 9.6 percent, leveraging earnings per share growth," Balmuth said.

The company noted that it opened a record 20 new stores during the first quarter and they are the first of about 55 new stores it plans to add in 2002.

Ross Stores operated 470 stores as of May 4.