Polo increases earnings projections

Polo Ralph Lauren Corp. raised earnings projections for the first quarter of fiscal 2006 last week. As a result shares in the compay leapt 8.9 per cent. Polo said that the amendment in expectations was in response to improved operating margins. The company said that operating margins for the quarter ended 2 July 2005 are now expected to increase between 500 and 550 basis points. Revenue projections, however, remain stable at more than 20 per cent.

During the posting of the fourth quarter and full year results for fiscal 2005 on 10 June, Polo said that it expected "consolidated revenues to increase more than 20 per cent, reflecting more than 25 per cent growth in wholesale sales, 10 per cent growth in retail sales including Ralph Lauren Media and a slight decrease in licensing royalty. Operating income (was) expected to increase significantly with operating margin almost doubling last year's".