NEW YORK, United States — Ralph Lauren Corp., the lifestyle retailer known for preppy fashions, posted second-quarter profit that exceeded analysts’ estimates as its cost-saving reorganization efforts begin to show results.
Earnings in the quarter through Sept. 26 were $2.13 a share, the New York-based company said in a statement on Thursday. Analysts estimated $1.73, on average.
Ralph Lauren, which said in September that former Gap Inc. executive Stefan Larsson would succeed the company’s founder as chief executive officer, is working to curb discounts and boost full-price sales. The company is expanding into new product lines to combat falling traffic and working to cut $100 million in annual costs by the end of its 2017.
This month marks Larsson’s first as CEO. The executive has been credited with reviving Gap’s Old Navy brand and previously held several positions at Hennes & Mauritz AB. Lauren, 76, will remain executive chairman and chief creative officer.
By Lindsey Rupp; editors: Nick Turner, Kevin Orland.