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Ralph Lauren (RL) Surpasses Q2 Earnings & Sales Estimates

Ralph Lauren Corporation RL, a designer, marketer and distributor of lifestyle products, released second-quarter fiscal 2018 results, wherein adjusted earnings of $1.99 came ahead of the Zacks Consensus Estimate of $1.90, and climbed 4.7% from $1.90 earned in the year-ago quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2018 has increased by a penny in the last 30 days. Moreover, Ralph Lauren’s performance over the trailing four quarters, excluding the quarter under review, remains encouraging with an average beat of 13.4%.

Revenues: Ralph Lauren’s net revenues dropped 8.6% to $1,664.2 million but surpassed the Zacks Consensus Estimate of $1,653.7 million. On a currency neutral basis, revenues fell 9%. Revenue decline was attributable to the exit of brand, promotional activity and soft consumer demand.

Outlook: The company continues to project currency neutral net revenues to decline 8–9% in fiscal 2018. For third-quarter fiscal 2018, management envisions currency neutral net revenue to decrease 6-8%. Foreign currency is estimated to favorably impact the top line growth by nearly 160-170 basis points in the second quarter. Further, the company adopted Accounting Standard Update (ASU) 2016-09 in the first quarter of fiscal 2018, which is likely to have an impact on its effective tax rate, among other things.

Ralph Lauren Corporation Price, Consensus and EPS Surprise

Ralph Lauren Corporation Price, Consensus and EPS Surprise | Ralph Lauren Corporation Quote

Zacks Rank: Currently, Ralph Lauren carries a Zacks Rank #2 (Buy), which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Ralph Lauren’s shares are down nearly 1.1% during pre-market trading hours following the earnings release.

Check back later for our full write up on Ralph Lauren’s earnings report!

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