The 10-second takeaway
For the quarter ended March 30 (Q4), Ralph Lauren missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Ralph Lauren logged revenue of $1.64 billion. The 13 analysts polled by S&P Capital IQ looked for a top line of $1.70 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 $1.41. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.30 per share. Non-GAAP EPS of $1.41 for Q4 were 42% higher than the prior-year quarter's $0.99 per share. GAAP EPS of $1.37 for Q4 were 38% higher than the prior-year quarter's $0.99 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 12.0%, 270 basis points better than the prior-year quarter. Net margin was 7.7%, 190 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.74 billion. On the bottom line, the average EPS estimate is $2.37.
Next year's average estimate for revenue is $7.64 billion. The average EPS estimate is $9.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 366 members out of 451 rating the stock outperform, and 85 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Ralph Lauren a green thumbs-up, and 15 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 $189.43.
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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.