The 10-second takeaway
For the quarter ended Sep. 29 (Q2), Ralph Lauren beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped.
Gross margins increased, operating margins increased, net margins dropped.
Ralph Lauren recorded revenue of $1.86 billion. The 14 analysts polled by S&P Capital IQ wanted to see sales of $1.84 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $1.90 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 $2.45. The 17 earnings estimates compiled by S&P Capital IQ anticipated $2.16 per share. GAAP EPS of $2.29 for Q2 were 6.9% lower than the prior-year quarter's $2.46 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 58.8%, 220 basis points better than the prior-year quarter. Operating margin was 18.7%, 30 basis points better than the prior-year quarter. Net margin was 11.5%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.93 billion. On the bottom line, the average EPS estimate is $2.29.
Next year's average estimate for revenue is $7.14 billion. The average EPS estimate is $7.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 365 members out of 451 rating the stock outperform, and 86 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 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 $171.57.
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