Feb 9 - Polo Ralph Lauren Corp posted a higher quarterly profit on strong sales of its upscale clothing to department stores over the holiday season, and raised its outlook for 2011 operating margin.

The company, whose brands include Polo, Club Monaco and Chaps, said net income rose to $168.4 million, or $1.72 a share, in the fiscal third quarter ended Jan. 1, from $111.1 million, or $1.10 a share, a year earlier.

Net revenue rose 24 percent to $1.5 billion, above the $1.46 billion analysts polled by Thomson Reuters I/B/E/S had expected.

Revenue from its wholesale business, which accounts for more than half of overall sales, rose 21 percent, and retail sales increased 29 percent. Sales at stores open at least a year rose 15 percent.

The company's board doubled the quarterly cash dividend to 20 cents a share and authorized an additional $250 million stock buyback program.

(Reporting by Phil Wahba and Ben Klayman; editing by John Wallace)