Companies and Brands
Ralph Lauren Kicks Off Fiscal 2016 With Solid Earnings Beat
Published:
Ralph Lauren Corp. (NYSE: RL) reported its fiscal first-quarter financial results on Wednesday before the markets opened. The company had $1.09 in earnings per share (EPS) on $1.6 billion in revenue, versus consensus estimates from Thomson Reuters that called for $0.99 in EPS on $1.61 billion in revenue. In the same period of the previous year the company posted EPS of $1.80 and $1.71 billion in revenue.
The company also gave guidance for the second quarter. Ralph Lauren expects consolidated net revenues to be up 3% to 5% on constant currency basis, and operating margin to be roughly 275 to 325 basis points below the same period of the previous year. The consensus estimates are $1.87 in EPS on $1.98 billion in revenue.
In terms of its segments, Ralph Lauren reported revenues as follows:
- Wholesale sales declined 9% to $642 million.
- Retail sales declined 3% to $935 million.
- Licensing increased slightly to $41 million.
At the end of the first quarter, the company had 467 directly operated stores, comprised of 140 Ralph Lauren stores, 65 Club Monaco stores and 262 Polo factory stores. Ralph Lauren also operated 558 concession shop locations worldwide at the end of the first quarter.
Ralph Lauren, chairman and CEO, said:
We are making the right strategic decisions and investments to support the future growth of the Company. I am confident that our new organizational structure will allow us to make our already powerful brands even stronger, and the investments we are making today will create significant value for shareholders over the long term.
ALSO READ: 5 Analyst Stock Picks From July That Could Double
Jacki Nemerov, president and COO, said:
Our better-than-expected first quarter profitability reflects the strong progress we have made on our key strategic initiatives. The decisive actions we are taking around our global brand reorganization, infrastructure investments, e-commerce re-platform, and product pricing will position the Company for future growth and generate substantial operating efficiencies.
The company ended the first quarter of fiscal 2016 with $1.2 billion in cash and investments, compared to $1.4 billion in cash and investments at the end of the first quarter of fiscal 2015.
Shares of Ralph Lauren closed Tuesday at $123.31, in its 52-week trading range of $119.16 to $187.49. After the earnings were released Wednesday, shares were up about 3% after the opening bell but later down fractionally to $123.14. The stock has a consensus analyst price target of $143.47.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
