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.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.