The Dividend Daily

Apparel maker and retailer Polo Ralph Lauren Corporation (RL) on Tuesday posted much better-than-expected third quarter earnings.

The New York-based company reported third quarter net income of $177.5 million, or $1.75 per share, compared with $161 million, or $1.58 per share, in the year-ago period. Revenue fell 4% from last year, however, to $1.37 billion.

On average, Wall Street analysts expected a much lower profit of just $1.32 per share, on smaller sales of $1.32 billion.

Polo said that sales at its retail stores fell 3% from last year, while same-store sales fell 6%. Same-store sales are a key metric for retailers, since they measure the performance of stores open at least one year.

Polo Ralph Lauren shares rose 74 cents, or +1%, in morning trading Tuesday.

The Bottom Line
We recently removed shares of RL from our “recommended” list back on Oct.1, when the stock was trading at $76.62. The company has a .26% dividend yield, based on last night’s closing stock price of $76.71. The stock has technical support in the $70-$71 price area. If the shares can firm up, we see overhead resistance around the $80 price level. We would remain on the sidelines for now.

Polo Ralph Lauren Corporation (RL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.