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Polo Ralph Lauren Q3 Profit Rises 10% on Cost Cuts, Beats View (RL)

By Dividend.com Staff
November 3rd, 2009

polo-ralph-lauren-q3-profit-rises-10-on-cost-cuts-beats-view-rl

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.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.