NEW YORK – Polo Ralph Lauren’s fourth-quarter earnings fell because of the impact of charges related to litigation and an alleged breach of its retail computer system, but on an adjusted basis came in ahead of Wall Street estimates by one cent.
The company on Friday reported net income of $23.4 million, or 22 cents a diluted share, which compares with $76.4 million, or 75 cents, in the same year-ago fourth quarter. Excluding the charges and an adjustment for changes in its lease accounting, Polo Ralph Lauren earned $85.1 million, or 81 cents, beating the Wall Street consensus of 80 cents by a penny. For the quarter, total revenues were $902.2 million, up 10.2 percent from $818.8 million a year ago.
For the year-end period, the company posted a 12.5 percent gain in income to $190.4 million from $169.2 million on a revenue increase of 24.7 percent to $3.31 billion from $2.65 billion.
The company reiterated fiscal year 2006 earnings per share expectations in the range of $2.75 to $2.85.
“We executed well strategically and financially this year,” Roger Farah, president and chief operating officer, said in a statement. “Our company focus continues to be on generating strong operating cash flow by being in control of the growth of our brands and by fine tuning our global operations.”
— Vicki M. Young
For more, see Monday’s WWD.