What happened

Shares of Ralph Lauren Corp. (NYSE:RL), a global leader in design, marketing, and distribution of premium lifestyle apparel and other product categories, are popping 15% as of 11:20 a.m. EDT, after the company topped estimates on both the top and bottom lines during the fourth-quarter fiscal 2018.

So what

Revenue checked in at $1.53 billion, which was down from the prior year's $1.57 billion but ahead of consensus estimates calling for $1.49 billion. Adjusted earnings per share checked in at $0.90, well ahead of analysts' estimates calling for $0.83 per share.

"We delivered on our commitments for the fourth quarter and full year, and we made strong operational progress," said President and Chief Executive Officer Patrice Louvet in a press release. "We start the new year with a solid foundation – including a clear strategic plan to deliver long-term growth and value creation, an engaged global organization, and a strong balance sheet."

Front of a premium apparel store with dressed mannequins on display.

Image source: Getty Images.

Now what

There were definitely bright spots that encouraged investors. Those include that average unit retail across its direct-to-consumer network increased 4% for the full year fiscal 2018 with discount rates down across all regions and channels. Adjusted gross margins moved 290 basis points higher for the full year, while posting growth each quarter. Ralph Lauren has set the stage with its strong quarter to really hit a home run during its June 7 Investor Day and convince investors and analysts it can keep this momentum going -- Ralph Lauren stock is up 96% over the past 12 months.

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