(Bloomberg) -- Ralph Lauren Corp. posted fourth-quarter profit that exceeded analysts’ estimates as the company revamps its operations to reignite sales growth.
Earnings were 88 cents a share, excluding some items, in the period ended April 2, the New York-based company said in a statement Thursday. Analysts projected 83 cents, on average. While revenue fell 0.7 percent to $1.87 billion, that just topped analysts’ $1.86 billion average estimate.
The results provide some optimism that Ralph Lauren may be headed toward a revival as new Chief Executive Officer Stefan Larsson reorganizes the company. The retailer is working to cut $110 million in annual costs, remodel stores and reduce its product count to keep inventory low.
Ralph Lauren also said its board had authorized $200 million in stock buybacks in addition to the $100 million it had available at the end of its fiscal fourth quarter.
The shares rose 4.9 percent to $88.64 at 8:06 a.m. in early trading in New York. Ralph Lauren had slid 24 percent this year through Wednesday.
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