A blowout earnings report pushed Polo Ralph Lauren (NYSE: RL) to all-time highs Wednesday as shares increased by more than 7%. The company posted revenue of $1.53 billion -- a gain of 11% -- and earnings of $2.09 per share. This crushed estimates calling for profit of $1.69 a share.

Polo's second fiscal quarter is usually its strongest as wholesale customers purchase their goods for the upcoming holiday sales season, but the company's business was solid across the board. Polo's wholesale revenue grew 8% and was boosted by unexpected heavy demand in Europe as well as the United States. The company's retail operation was also very strong, as revenue there increased by 17%. While the sales increases show that luxury goods are still selling, the company's lower-priced retail chain Club Monaco also posted a revenue increase of 10%.

What's most interesting about retail sales is that the majority of the increase came from online sales at RalphLauren.com. While the company's bricks-and-mortar Ralph Lauren stores saw just a 1% increase in sales, the online operation saw a 21% increase over the same quarter last year.

Department store giant Macy's (NYSE: M) also reported earnings Wednesday, highlighting a 24% year-over-year increase in online retail versus a 6.6% increase in overall sales. These numbers bode well for retailers with strong online businesses, as well as online retailing leaders such as Amazon.com (Nasdaq: AMZN), which is positioning itself in the holiday toy race. Traditional retailers even at the lower end, such as Wal-Mart (NYSE: WMT) and Target (NYSE: TGT), are jockeying for Internet position as we approach the Christmas home stretch.

Polo seems to be doing well, and investors should not let its greater than $100 share price scare them away. In September, the company was put on review for a ratings upgrade by Moody's due to the company's impressive operating performance as the economy has recovered gradually from the recession. This most recent quarter should only serve to further this point.

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