Ralph Lauren Is Surging After Q3 Earnings; Stock Up 10%

Shares of Ralph Lauren

jumped higher at the open of trading on Wednesday after the iconic retailer posted strong third quarter earnings results prior to the opening bell. The company reported net income of $169 million or $1.78 per share, compared to $168.4 million or $1.72 per share, in the year ago period. These results exceeded Street consensus EPS estimates of $1.67. Revenues at Ralph Lauren were up 17% to $1.81 billion from $1.55 billion in last year's third quarter. Revenue growth was driven primarily by strong worldwide retail sales and double-digit wholesale revenue growth in the United States and Europe. Wall Street analysts had consensus revenue estimates of $1.75 billion heading into the report. Looking ahead, RL sees operating margins for fiscal 2012 roughly in line with the prior year and consolidated revenue growth of around 20 percent. During Wednesday's trading session, RL shares have risen 9.60% to $171.85 on very heavy volume.