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NEW YORK — Polo Ralph Lauren Corp.'s fiscal fourth-quarter net income more than doubled and the company said it will aggressively grow its business in the new fiscal year both in international markets and by selling directly to consumers.
The company, which makes Polo, Ralph Lauren and Club Monaco brand clothing, said Wednesday it earned $114.1 million, or $1.13 per share, in the three-month period ended April 3. In the same period last year, the company earned $44.5 million, or 44 cents a share, including hefty charges.
Revenue rose 9 percent to $1.34 billion from $1.22 billion last year as wholesale sales to department stores fell nearly 3 percent to $736 million but sales at the company's own retail stores rose 31 percent. The company said revenue increased at its branded stores, factory stores, Club Monaco and at its site, RalphLauren.com.
Licensing revenue was flat at $47 million, as higher domestic revenue was offset by a drop in international licensing revenue.
Analysts surveyed by Thomson Reuters, on average, had predicted earnings per share of 64 cents on revenue of $1.24 billion.
The New York company said fiscal 2010 included 53 weeks, compared with 52 weeks in the prior year, and the extra week added $70 million to quarterly and full-year revenue.
Chief Operating Officer Roger Farah said the company has more than $1.2 billion in cash and investments on its balance sheet so it plans "an aggressive acceleration" of its investments in growth initiatives in fiscal 2011. He noted the company will focus on growing in international markets and its efforts to sell directly to consumers.
For the full year, the company earned $479.5 million, or $4.73 a share, up from $406 million, or $4.01 a share, from the prior year. Revenue softened slightly to $4.98 billion, from $5.02 billion in the prior year.
Analysts expected earnings per share of $4.26 on revenue of $4.88 billion, according to Thomson.
The company said for the first quarter it expects revenue to grow at a low double-digit rate, with revenue at stores open at least a year expected to rise at a high single-digit rate. That's a key figure for retailers because it measures growth at existing locations, rather than including new ones.
Shares of Ralph Lauren fell 40 cents to $85.38 in morning trading.
