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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