Ralph Lauren Flies, but Its Quarter Wasn’t All That
Ralph Lauren (NYSE:RL) jumped in early trading after the preppy clothing company reported better-than-expected earnings for its fiscal third quarter, reported Barron’s.
The firm reported $1.78 of earnings per share, beating expectations by 11 cents, according to the report. Revenue of $1.81 billion was better than the anticipated $1.75 billion. Lauren, now in its fourth fiscal quarter, said it foresees sales growth of 20 percent for its current fiscal year
Although shares gained 12 percent in early trading, analyst Brian Sozzi, chief strategist for NBG Productions, was not terribly impressed. He noted that the timing of the company’s expenses apparently accounted for part of the earnings beat.
“There were soft spots to the report that are at least warranting of a near-term reassessment on
the company’s valuation,” said Sozzi.
Here’s how shares of Ralph Lauren closed:
Polo Ralph Lauren Corp. (NYSE:RL): RL shares recently traded at $171.49, up $14.42, or 9.18%. They have traded in a 52-week range of $105.11 to $164.55. Volume today was 5,736,544 shares versus a 3-month average volume of 979,739 shares. The company’s trailing P/E is 25.32, while trailing earnings are $6.77 per share.
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