Ralph Lauren Corporation has reported first quarter 2017 financial results, which were in line with previous expectations for the company, as the company is still trying new strategies under the leadership of CEO Stefan Larsson.
The news was greeted positively by investors. As of 10 a.m., the company’s stock had risen over 8 percent from Wednesday night’s closing.
Earnings per diluted share were $0.27 on a reported basis and $1.06 on an adjusted basis, excluding restructuring, impairment and inventory-related charges in connection with the company’s restructuring plans, for the first quarter of fiscal 2017. This compared to earnings per diluted share of $0.73 on a reported basis and $1.09 on an adjusted basis, excluding restructuring and other related charges, for the first quarter of fiscal 2016.
The company reported overall net revenues of $1.6 billion, a decline of 4 percent compared to the prior year period on both a constant currency and a reported basis. Business was much stronger outside the U.S., however; with North American revenues declining by 11 percent, and international net revenues rising 11 percent.
Consolidated comparable store sales decreased 6 below on a reported basis and 7 percent in constant currency during the first quarter, primarily due to lower traffic trends.
“I am encouraged by the steps we are taking to refocus on and evolve our core and bring back the entrepreneurial spirit that made this company great,” said Ralph Lauren, executive chairman and chief creative officer.
Added Stefan Larsson, the company’s president and chief executive officer: “We will continue to balance driving near-term performance with the pursuit of our long-term vision. We have already completed the planned right-sizing of the organization and are well underway in building the leadership team that will have the strength to successfully execute our plan.”
Nonetheless, the company still expects net revenues to decrease in the single digits for the remainder of fiscal 2017.