Polo Ralph Lauren Earnings: Here’s Why the Stock is Dancing Now

Polo Ralph Lauren Corp. (NYSE:RL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6%.

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Polo Ralph Lauren Corp. Earnings Cheat Sheet

Results: Net income increased 27.63% to $215.7 million ($2.31 per diluted share) in the quarter versus a net gain of $169 million in the year-earlier quarter.

Revenue: Decreased 0.86% to $1.79 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Polo Ralph Lauren Corp. reported adjusted net income of $2.31 per share. By that measure, the company beat the mean analyst estimate of $2.19. It missed the average revenue estimate of $1.85 billion.

Quoting Management: “Our third quarter performance is a testament to the enduring appeal of our brand and the dedication of our passionate team,” Ralph Lauren, chairman and CEO, said in a statement. “Our orientation as a design-led, marketing and merchandising organization has enabled us to deepen our connection with our customers, particularly as we expand our portfolio of products and lifestyle sensibilities.”

Key Stats (on next page)…

Revenue decreased 3.87% from $1.86 billion in the previous quarter. Net income increased 0.94% from $213.7 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.34 and has not changed. For the current year, the average estimate has moved up from a profit of $7.85 to a profit of $7.87 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)