Premium fashion brand Ralph Lauren (NYSE:RL) beat markets forecasts as fourth quarter profits rose by 29 per cent, though growth is tipped to slow this year.
The clothing group said that the problems in Europe, currency movements and a shutdown of some wholesale operations in China and Japan would limit sales growth in the first quarter to low single digits.
For the full year, the company expects sales growth to pick up to mid-single digits driven by its retail arm.
The owner of the Polo and Club Monaco brands increased revenues by 14 per cent to US$1.6 bln in the three months to March, while net income rose to US$94 million, from US$73 million.
Earnings per share were 99c against market forecasts of 84c.
Ralph Lauren, chairman and chief executive, said the year had seen significant progress with its international expansion. He was especially thrilled with the progress in its handbags range worldwide, he added.
The profits improvement was also achieved against unprecedented raw materials cost inflation and highly uncertain market conditions throughout the year, said the company.
A doubled fourth quarter dividend of 40c per share was an indication of the company’s confidence, it added.
Sales for the year to March rose by 21 per cent to US$6.9 billion, while earnings per share rose 24 per cent to US$7.13.
Club Monaco sales rose by 18 per cent over the year after a very strong fourth quarter, while RalphLauren.com lifted sales by for the year by 29 per cent.