Ralph Lauren Shares Rose Sharply, The Biggest Increase In 15 Years.

The cost reduction and restructuring measures began to take effect. Ralph Lauren Corp. (NYSE:RL) Ralph Lauren group's two quarter earnings and earnings were evenly matched by market expectations. Investors saw the hope of turning over the most iconic clothing brand in the United States for many years. Ralph Lauren Corp. NYSE:RL (NYSE:RL) rose at most in the morning, up to 26%, the biggest gain in 15 years.

The Group recorded an adjusted earnings per share of US $2.13 in the two quarter ended September 26th, much better than the $1.73 expected by the market.

Net income decreased by 1.2% to US $1 billion 970 million per annualized year, better than the US $1 billion 950 million of market expectations, and a 4% growth rate under constant exchange rate, mainly driven by double-digit growth in international business under constant exchange rate.

The group maintained a year-round net income constant exchange rate growth of 3%-5% over the 2015 fiscal year, and the operating profit margin is expected to decline by 180-230 basis points over the previous year.

In the two quarter, the operating margin was affected by the strength of the US dollar, which dropped 90 basis points to 13.5% over the same period last year, and the gross margin dropped 30 basis points to 56.5%.

For the three quarter holiday season, net income is expected to grow by 0%-2% on the basis of real exchange rate, which is in line with market expectations and operating profit margin is expected to have a year-on-year decline of 200-250 basis points.

In February this year, the group announced the goal of establishing a new global brand organization structure with the annual cost savings of 110 million US dollars, including Ralph Lauren

, Polo Ralph Lauren, Denim & Supply Ralph Lauren, Lauren, Chaps and American Living, American and Lauren six brands, each brand is led by its respective president and management team.

The new architecture will significantly reduce SKU and thus improve.

Optimize gross margin and reduce SG&A charges.

However, during the pition period, there will be a one-time cost of 1.2-1.5 billion dollars, most of which will be recorded in the first half of the current fiscal year 2016. Meanwhile, 5% of the employees will be unemployed.

The restructuring cost in the two quarter amounted to US $38 million, and the strong US dollar led to a net profit decrease of 20.4% to US $160 million, or earnings per share of US $1.86, compared with us $201 million in the same period last year, or US $2.25 per share.

Wholesale sales amounted to US $927 million, a slight decline of 1.7% compared with 943 million US dollars in the same period last year, and an increase of 3% under the constant exchange rate. European wholesale sales of all the brands of the group were strong.

Retail sales of $996 million were basically flat compared with the same period last year, with a 5% growth rate at a constant exchange rate, a 6% decline in same store sales and a narrowing of 1% to a constant exchange rate.

Authorized income increased by 4.4% to $47 million.

Ralph Lauren Corp.

Ralph Lauren, the founder of the group, has resigned as chief executive of the group in September, giving way to the former global president of Gap Inc. Inc. (NYSE:GPS), the Old Navy Old Navy brand of Cape group, and has served for more than 15 years in H&M parent company Hennes Mauritz AB.

Stefan Larsson was only formally recruited this week.