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Ralph Lauren (RL) Q3 Earnings Beat, Sales Miss; Stock Fall
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Ralph Lauren Corporation (RL - Free Report) a designer, marketer and distributor of premium lifestyle products, released third-quarter fiscal 2017 results, wherein adjusted earnings of $1.86 came substantially ahead of the Zacks Consensus Estimate of $1.64, while it declined 18.1% from $2.27 earned in the year-ago quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 and 2018 has been trending downwards in the last seven days. However, Ralph Lauren’s performance over the trailing four quarters, excluding the quarter under review, remains encouraging with an average beat of 11.1%.
Revenues: Ralph Lauren’s net revenues dropped approximately 12% to $1,714 million, which also fell short of the Zacks Consensus Estimate of $1,708 million. On a constant currency basis, the same fell 11%.
Outlook & Other Developments: Management continues to anticipate consolidated net revenues to fall at a low-double digit rate in fiscal 2017, in line with the company’s Way Forward Plan. Currency headwinds are expected to have minimum impact on the net revenues for fiscal 2017. For the fourth quarter, the company expects consolidated net revenues to dip in mid-teens range. Currency headwinds are expected to hurt revenue growth by nearly 100 basis points in the fourth quarter.
Further, Ralph Lauren remains focused on its Way Forward plan, which was announced in Jun 2016. In this regard, management expects to generate annualized cost savings worth $180-$220 million, on the back of its fiscal 2017 restructuring activities. Such restructuring activities include rightsizing the portfolio and cost-structure, alongside streamlining the structure of the organization. The company also expects to incur $400 million and $150 million by the end of fiscal 2017, on account of these restructuring charges and inventory charge associated with the company’s Way Forward Plan, respectively.
Zacks Rank: Currently, Ralph Lauren carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.
Stock Movement: Ralph Lauren’s shares fell nearly 10.2% during pre-market trading hours following the earnings release.
Check back later for our full write up on Ralph Lauren’s earnings report!
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Ralph Lauren (RL) Q3 Earnings Beat, Sales Miss; Stock Fall
Ralph Lauren Corporation (RL - Free Report) a designer, marketer and distributor of premium lifestyle products, released third-quarter fiscal 2017 results, wherein adjusted earnings of $1.86 came substantially ahead of the Zacks Consensus Estimate of $1.64, while it declined 18.1% from $2.27 earned in the year-ago quarter.
Ralph Lauren Corporation Price and EPS Surprise
Ralph Lauren Corporation Price and EPS Surprise | Ralph Lauren Corporation Quote
Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 and 2018 has been trending downwards in the last seven days. However, Ralph Lauren’s performance over the trailing four quarters, excluding the quarter under review, remains encouraging with an average beat of 11.1%.
Revenues: Ralph Lauren’s net revenues dropped approximately 12% to $1,714 million, which also fell short of the Zacks Consensus Estimate of $1,708 million. On a constant currency basis, the same fell 11%.
Outlook & Other Developments: Management continues to anticipate consolidated net revenues to fall at a low-double digit rate in fiscal 2017, in line with the company’s Way Forward Plan. Currency headwinds are expected to have minimum impact on the net revenues for fiscal 2017. For the fourth quarter, the company expects consolidated net revenues to dip in mid-teens range. Currency headwinds are expected to hurt revenue growth by nearly 100 basis points in the fourth quarter.
Further, Ralph Lauren remains focused on its Way Forward plan, which was announced in Jun 2016. In this regard, management expects to generate annualized cost savings worth $180-$220 million, on the back of its fiscal 2017 restructuring activities. Such restructuring activities include rightsizing the portfolio and cost-structure, alongside streamlining the structure of the organization. The company also expects to incur $400 million and $150 million by the end of fiscal 2017, on account of these restructuring charges and inventory charge associated with the company’s Way Forward Plan, respectively.
Zacks Rank: Currently, Ralph Lauren carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Ralph Lauren’s shares fell nearly 10.2% during pre-market trading hours following the earnings release.
Check back later for our full write up on Ralph Lauren’s earnings report!
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>