WASHINGTON (dpa-AFX) - Apparel maker Ralph Lauren Corp. (RL) posted lower second-quarter net income of $205 million, or $2.23 per share, compared with $214 million, or $2.29 per share, a year before. On average, 17 analysts polled by Thomson Reuters expected earnings per share of $2.20 for the quarter. Analysts' estimates typically exclude one-time items. The contractions in both net profit and earnings per share were principally the result of the decline in operating income.
Three-month operating income stood at $295 million, 15% below the previous year. According to the company, an effective tax rate of 29% in the second quarter of fiscal 2014 includes the benefit of restructuring certain international operations and compares to 38% in the prior year, which included the net negative impact of a one-time discrete tax item.
On the other hand, the firm clocked net revenues of $1.915 billion, up 3% from $1.86 billion in the prior-year quarter, whereas 13 analysts estimated revenues of $1.91 billion. Excluding the net negative impact from foreign currency translation and discontinued businesses, net revenues rose nearly 4% in the second quarter.
For the third quarter of fiscal 2014, consolidated net revenues are projected to grow by 8% - 10%, including a 200 basis point net negative impact from foreign currency translation and discontinued businesses.
Looking ahead, the company is raising its fiscal 2014 revenue outlook to 5% - 7% growth, which is toward the high end of the earlier 4% - 7% range and includes an approximately 200 basis point net negative impact from foreign currency translation and discontinued businesses.
In addition, the board declared a 12.5% increase in the regular quarterly cash dividend on its common Stock. The new quarterly cash dividend is now $0.45 per share. Over the next year, the new annual dividend amount would be $1.80 per share. The next quarterly dividend is payable on January 10, 2014 to shareholders of record at the close of business on December 27, 2013.
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