The 10-second takeaway
For the quarter ended March 31 (Q4), Ralph Lauren beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins grew across the board.
Ralph Lauren reported revenue of $1.62 billion. The 14 analysts polled by S&P Capital IQ hoped for sales of $1.60 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.43 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.99. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.86 per share. GAAP EPS of $0.99 for Q4 were 34% higher than the prior-year quarter's $0.74 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.1%, 30 basis points better than the prior-year quarter. Operating margin was 9.0%, 50 basis points better than the prior-year quarter. Net margin was 5.8%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.58 billion. On the bottom line, the average EPS estimate is $1.79.
Next year's average estimate for revenue is $7.26 billion. The average EPS estimate is $7.93.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 367 members out of 451 rating the stock outperform, and 84 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Ralph Lauren a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ralph Lauren is outperform, with an average price target of $184.69.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.