Ralph Lauren beats profit estimates as it reins in discounts

[May 18, 2017]  (Reuters) - Ralph Lauren Corp <RL.N> reported a better-than-expected quarterly profit on Thursday, as the luxury apparel maker reined in discounts and cut inventories in a bid to boost margins.
 

A man walks past Ralph Lauren Corp.'s flagship Polo store on Fifth Avenue in New York City, U.S., April 4, 2017. REUTERS/Brendan McDermid/File Photo

Shares of the company rose 5 percent in trading before the bell on Thursday.

Ralph Lauren reported a net loss of $204 million, or $2.48 per share in the fourth quarter ended April 1, reflecting a more than $300 million charge related to restructuring and severance pay.

The company posted a net income of $41.3 million, or 49 cents per share, a year earlier.

Excluding items, Ralph Lauren reported a profit of 89 cents per share, beating analysts' average expectation by 11 cents, according to Thomson Reuters I/B/E/S.

Revenue fell 16.3 percent to $1.57 billion in the fourth quarter.

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Sai Sachin Ravikumar)

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