Ralph Lauren Corporation (RL), a designer, marketer and distributor of lifestyle products, released first-quarter fiscal 2016 results, wherein adjusted earnings of $1.09 a share surpassed the Zacks Consensus Estimate of $1.00. However, the bottom line declined 39.4% from $1.80 a share earned in the year-ago quarter.
Ralph Lauren reiterated its forecast for fiscal 2016, anticipating constant-currency revenue growth in the mid-single digits range. This will include an anticipated 450 bps negative impact from foreign currency translations.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 portrays an uptrend in the last 30 days. Moreover, Ralph Lauren’s performance over the trailing four quarters, including the quarter under review, remains encouraging with an average of 5.3%.
Revenues: Ralph Lauren generated net sales fell 5.3% year over year to $1,618 million, while surpassing the Zacks Consensus Estimate of $1,607 million. Excluding the negative currency impact, sales remained flat with the prior-year quarter primarily due to double-digit revenue growth internationally, as well as assistance from new stores and e-commerce growth.
Key Events: During the first quarter, Ralph Lauren made significant progress in transitioning to the new global brand management organizational structure. Under the plan, the company created six brand groups and appointed people in important positions.
Zacks Rank: Currently, Ralph Lauren carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Ralph Lauren’s shares jumped nearly 4% during pre-market trading hours following the earnings release. Investors developed a positive sentiment following the company’s better-than-expected results and progress made in transitioning to the new global brand management organizational structure.
Check back later for our full write up on Ralph Lauren’s earnings report!
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