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

Ralph Lauren Corp. (NYSE:RL) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.68%.

Ralph Lauren Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4.43% to $1.94 in the quarter versus EPS of $2.03 in the year-earlier quarter.

Revenue: Rose 3.74% to $1.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations:Ralph Lauren Corp. reported adjusted EPS income of $1.94 per share. By that measure, the company met the mean analyst estimate of $1.94. It beat the average revenue estimate of $1.65 billion.

Quoting Management: “We made important progress on several key initiatives during the first quarter,” said Ralph Lauren, Chairman and Chief Executive Officer. “We opened a spectacular men’s luxury flagship store in Hong Kong, our first Polo store in East Hampton and several additional, high profile projects around the world are developing nicely. We’ve got exciting new product initiatives planned for Fall, particularly with accessories, and we intend to support them with innovative merchandising strategies and compelling advertising and marketing campaigns. I am confident that the investments we are making today can support profitable, sustainable growth for us over the long term.”

Key Stats (on next page)…

Revenue increased 0.59% from $1.64 billion in the previous quarter. EPS increased 37.59% from $1.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.83 to a profit $2.60. For the current year, the average estimate has moved down from a profit of $9.32 to a profit of $8.72 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)