Apparel maker Ralph Lauren Corp. (RL) announced an improvement in third-quarter net income attributable to the company to $215.7 million, or $2.31 per share, from $169 million, or $1.78 per share, a year earlier.
During the recent quarter, the company recorded nearly $13 million in pre-tax impairment and restructuring charges associated with the discontinuation of its Rugby operations. Excluding the Rugby-related impairment and restructuring charges, adjusted net income totaled $224 million, or $2.40 per share in the third quarter of fiscal 2013. On average, 14 analysts polled by Thomson Reuters expected earnings per share of $2.19 for the quarter. Analysts' estimates typically exclude one-time items.
Three-month net revenues were $1.85 billion, up 2% from the prior year's $1.81 billion, helped by strong retail segment expansion that was partially offset by a planned contraction in wholesale shipments. Analysts estimated revenues of $1.85 billion for the quarter. Excluding the impact of strategic decisions to discontinue American Living and store closures associated with the Company's Greater China network repositioning efforts, in addition to the net negative impact from foreign currency translation, net revenues climbed about 5% in the third quarter.
Consolidated comparable-store sales were up 4% on both reported and constant currency basis for the quarter. The company estimates that disruption caused by Super Storm Sandy negatively impacted third quarter comparable store sales growth by 1%-2%.
For the fourth quarter of fiscal 2013, the company sees consolidated net revenues to increase by a mid-single-digit percentage, reflecting an 8%-11% increase in retail revenues and wholesale revenues that are flat to the prior year period.
In addition, fiscal 2013 consolidated net revenues are estimated to increase by around 2%.
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