By Kim Khan
Investing.com – Ralph Lauren (NYSE:) rose higher Tuesday after a blowout quarter that put to bed concerns about Hong Kong dragging numbers down.
Shares of Ralph Lauren jumped 10% in midday trading.
The luxury clothing company reported of $2.86 per share, well ahead of the $2.44 per share expected, according to analysts’ forecasts compiled by Investing.com.
Sales came in at $1.75 billion, beating estimates of $1.72 billion.
Same-store sales in the U.S. rose 2% for the quarter. Asian same-store sales posted a gain of 1%.
Weakness in Hong Kong, where protests have enveloped the administrative region, was offset by growth in brick-and-mortar sales and e-commerce, Briefing.com reported.
The company said it was assessing the financial impact of shutting about half of its 110 stores in China due to the coronavirus outbreak. It gets about 4% of its total revenue from China, a growth market for luxury goods makers.
Looking ahead, Ralph Lauren expects 2020 net revenue growth of 2% to 3%.
For the fourth quarter, heavyweight parkas, coats, light down jackets and wind breakers were among Ralph Lauren’s bestsellers during the holidays, CEO Patrice Louvet said.
“The company’s winter wear was on trend in terms of color and silhouette,” Jessica Ramirez, analyst at research firm Jane Hali & Associates said. “They got them right.”
— Reuters contributed to this report.
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