NEW YORK — Shares of Polo Ralph Lauren Corp. on Friday jumped 8.9 percent after the company raised earnings expectations for the first quarter of fiscal year 2006, citing operating margins as trending ahead of prior guidance.
Over 3.4 million shares changed hands Friday, sending their price up $3.87 to close at $47.34 in trading on the New York Stock Exchange. The average trading volume for the company over a three-month period has been just 499,216 shares. Shares of Polo at one point rose even higher to $48.50, for a gain of 10 percent, in intraday trading.
The apparel manufacturer said operating margins for the quarter ended July 2, 2005 are now expected to increase between 500 and 550 basis points versus a year ago. Revenues are still expected to increase by more than 20 percent, as previously forecasted.
When the company announced fourth-quarter and full-year results for fiscal 2005 on June 10, Polo said that it expected "consolidated revenues to increase more than 20 percent, reflecting more than 25 percent growth in wholesale sales, 10 percent growth in retail sales including Ralph Lauren Media and a slight decrease in licensing royalty. Operating income [was] expected to increase significantly with operating margin almost doubling last year's 3.7 percent."
The New York-based firm did not provide any earnings per share range for the first quarter. The consensus among Wall Street analysts, according to Thomson Financial, is EPS of 25 cents on sales of $694 million, compared with 14 cents a share on sales of $592.8 million in the same year-ago quarter.
Polo also said that it intends to address its full-year outlook when it reports first-quarter results on Aug. 9.
"We are pleased that our multi-year business strategy is resulting in better than forecasted performance. Our retail and wholesale businesses are reporting strong revenue gains that were driven by better full-price sell-throughs. In addition, we were able to better leverage our incremental sales through improved expense management," said Roger Farah, president and chief operating officer, in a statement.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion