The 10-second takeaway
For the quarter ended Dec. 29 (Q3), Ralph Lauren met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Margins increased across the board.
Ralph Lauren chalked up revenue of $1.85 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $1.85 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $2.40. The 15 earnings estimates compiled by S&P Capital IQ predicted $2.18 per share. GAAP EPS of $2.31 for Q3 were 30% higher than the prior-year quarter's $1.78 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 59.3%, 220 basis points better than the prior-year quarter. Operating margin was 17.2%, 220 basis points better than the prior-year quarter. Net margin was 11.7%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.74 billion. On the bottom line, the average EPS estimate is $1.34.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $7.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 366 members out of 453 rating the stock outperform, and 87 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Ralph Lauren a green thumbs-up, and 17 give it a red thumbs-down.
Selling to fickle consumers is a tough business for Ralph Lauren or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.
- Add Ralph Lauren to My Watchlist.