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Ralph Lauren's quarterly revenue, profit beat estimates

(Reuters) - Ralph Lauren Corp’s (RL.N) quarterly revenue and profit beat Wall Street estimates on Thursday, as it kept costs low and sold more full-price apparel that lifted margins.

The U.S. flag is reflected over the door at the Ralph Lauren Corp.'s flagship Polo store on Fifth Avenue in New York City, U.S., April 4, 2017. REUTERS/Brendan McDermid

The company’s adjusted gross margins rose 3 percent and revenue per unit sold across its stores rose 5 percent in the second quarter compared to a year earlier.

Shares of the New York-based company rose nearly 3 percent at $92 before the bell on Thursday.

The company also raised the lower-end of its 2018 operating margin forecast to 9.5 percent to 10.5 percent from its previous expectation of 9 percent to 10.5 percent.

The company’s net income rose to $143.8 million or $1.75 per share in the second quarter ended Sept. 30, from $45.7 million or 55 cents per share, a year earlier.

Ralph Lauren took a $150 million charge on a slew of restructuring initiatives in the year-ago quarter.

The company’s profit in the latest quarter before one-time charges beat estimates of $1.89 by 10 cents.

Revenue fell 9 percent to $1.67 billion, hurt in part by its decision to pull back from department stores and factory outlets. Analysts on average had expected $1.65 billion, according to Thomson Reuters I/B/E/S.