"And while we continue to face margin pressure for the remainder of the year, even as we contend with considerable market volatility and geopolitical uncertainty, we are excited about our long term growth prospects," Farah said. With a blow out earnings report, and guidance raise, this is exemplary of what we are seeing in this country: the stark difference between the very wealthy and the very poor. Polo Ralph Lauren is one of the most well known brands around the world, and the company exemplifies luxury and prestige. There are people out there who are willing to forgo food on the tablet for a Ralph Lauren sweater or polo shirt. That is how revered the company is. Today's blowout earnings report shows the trend continues. The upper end consumer is clearly spending, and looks to continue to open up their wallets, as far as Ralph Lauren is concerned. Polo Ralph Lauren is trading at 19 times 2012 earnings and sports a 0.5% dividend yield, so shares are starting to get a little pricey. However, the company continues to generate strong returns on equity, at nearly 21%.
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