NEW YORK (AP) -- Ralph Lauren Corp.'s shares soared Tuesday after it reported that strong sales during the holidays helped it beat analyst expectations for its fiscal third quarter.
The clothing and home products company said it earned $169 million, or $1.78 per share, for the quarter that ended Dec. 31. That compares with net income of $168.4 million, or $1.72 per share, in the same quarter last year. Revenue jumped 17 percent to $1.81 billion.
Lauren said strong sales at its own stores and increased sales to department stores helped offset higher taxes during period.
The company's wholesale revenue grew 11 percent, and revenue from its own stores increased 22 percent, which included a boost from a larger base of stores. But revenue at its stores open at least a year, considered a key indicator because it strips away the impact of recently opened stores, increased 12 percent as well.
The company's only decline came from licensing revenue, which dipped 1 percent because of lower international and home product licensing.
The company, whose brands include Polo by Ralph Lauren, Chaps and Club Monaco, sells its products at department stores and nearly 900 of its own stores and small shops.
The quarter beat analyst expectations of $1.66 per share on revenue of $1.75 million.
Ralph Lauren said that due to the stronger-than-expected performance, it anticipates its revenue will increase 20 percent for the year. That is up from its prior expectations of high-teens to low 20s percentage growth. It also raised its operating margin outlook, saying it would be equivalent to or just below last year's. It previously said it expected a decline of half a percentage point.
Shares of Ralph Lauren rose $15, roughly 10 percent, to $172.07 in midmorning trading.
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