Ralph Lauren stock rallies after big profit beat, and as revenue rises above forecasts

Shares of Ralph Lauren Corp.
RL,
+0.24%
rallied 5.3% in premarket trading Thursday, after the luxury apparel and accessories company reported a big fiscal fourth-quarter profit beat and revenue that topped forecasts, as strength in Asia offset declines in North America and Europe. Net income for the quarter to April 1 rose to $32.3 million, or 48 cents a share, from $24.4 million, or 34 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share jumped to 90 cents from 49 cents, well above the FactSet consensus of 60 cents. Revenue grew 1.2% to $1.54 billion, above the FactSet consensus of $1.47 billion, as Asia revenue increased 13% to $390 million, while North American revenue fell 3% to $656 million and Europe revenue slipped 1% to $461 million. For the first quarter, the company expects revenue to be “down slightly,” while the FactSet consensus of $1.54 billion implies 3.3% growth. The stock has shed 9.0% over the past three months through Wednesday, while the S&P 500
SPX,
-0.73%
has gained 3.7%.