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Brand & Online Strength to Aid Ralph Lauren's (RL) Q3 Earnings
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Ralph Lauren Corporation (RL - Free Report) is expected to register top and bottom-line declines when it reports third-quarter fiscal 2023 numbers on Feb 9, before the opening bell. The Zacks Consensus Estimate for third-quarter fiscal 2023 revenues is pegged at $1.75 billion, which indicates a decline of 3.5% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.91 per share, which suggests a decline of 1% from the year-ago quarter’s reported figure. The consensus mark for earnings has moved down by a penny in the past 30 days.
We expect the company’s fiscal third-quarter total revenues to decrease 3.8% year over year to $1.75 billion and the bottom line to decline 3.3% to $2.84 per share.
The apparel and lifestyle products company’s earnings beat the Zacks Consensus Estimate by 6.7% in the last reported quarter. Its earnings outpaced the Zacks Consensus Estimate by 28.7%, on average, in the trailing four quarters.
Ralph Lauren has been gaining from brand strength, solid demand and expansion across all channels and regions. The company’s strategy of product elevation, acquisition of full-priced consumers, favorable channel and geographic mix, as well as ramping up of its targeting and personalization efforts, is likely to have supported AUR growth in the quarter under review.
The company’s focus on expanding digital and omni-channel capabilities via investments in mobile, omni-channel and fulfillment bodes well. Strength across owned and wholesale digital channels globally is likely to have been a key growth driver. Some other notable efforts on the online front are virtual selling appointments, “buy online, pick up in store,” endless aisle product availability, the introduction of additional digital sites in key markets, investments in AI-powered targeting and consumer acquisition.
These factors, along with the company’s first-ever full catalog Ralph Lauren mobile app, are likely to have aided the top line in the quarter under review. On its last reported quarter’s earnings call, management expected year-over-year revenue growth of low to mid-single digits at cc for the third quarter of fiscal 2023.
However, Ralph Lauren has been reeling under the negative impacts of higher freight and global supply-chain delays, which are anticipated to have dented margins in the fiscal third quarter. Also, unfavorable currency fluctuations are likely to have been concerning. The company earlier expected the unfavorable currency to negatively impact revenues by 780 bps, the gross margin by 170 bps and the operating margin by 180 bps in the to-be-reported quarter. These are likely to have impacted the bottom-line performance in the said quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Ralph Lauren this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ralph Lauren has a Zacks Rank #2 and an Earnings ESP of +0.34%.
Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) currently has an Earnings ESP of +18.48% and a Zacks Rank #3. BJ is likely to register bottom and top-line growth when it reports fourth-quarter fiscal 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.9 billion, suggesting 12.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal fourth-quarter earnings is pegged at 88 cents, suggesting 10% growth from 80 cents reported in the year-ago quarter. The consensus mark has moved down 2.3% in the past 30 days.
Crocs (CROX - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank #3. CROX is likely to register top-line growth when it reports fourth-quarter 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $938.5 million, suggesting 60% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Crocs' fourth-quarter earnings is pegged at $2.15, suggesting no year-over-year change. The consensus mark has moved up 7% in the past 30 days.
Calavo Growers (CVGW - Free Report) currently has an Earnings ESP of +8.33% and a Zacks Rank #3. CVGW is likely to register a top-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Calavo Growers’ quarterly revenues is pegged at $277 million, calling for growth of 0.9% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly EPS of 24 cents suggests a significant increase from the loss per share of 2 cents reported in the year-ago quarter. CVGW has a trailing four-quarter negative earnings surprise of 27.5%, on average.
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Brand & Online Strength to Aid Ralph Lauren's (RL) Q3 Earnings
Ralph Lauren Corporation (RL - Free Report) is expected to register top and bottom-line declines when it reports third-quarter fiscal 2023 numbers on Feb 9, before the opening bell. The Zacks Consensus Estimate for third-quarter fiscal 2023 revenues is pegged at $1.75 billion, which indicates a decline of 3.5% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $2.91 per share, which suggests a decline of 1% from the year-ago quarter’s reported figure. The consensus mark for earnings has moved down by a penny in the past 30 days.
We expect the company’s fiscal third-quarter total revenues to decrease 3.8% year over year to $1.75 billion and the bottom line to decline 3.3% to $2.84 per share.
The apparel and lifestyle products company’s earnings beat the Zacks Consensus Estimate by 6.7% in the last reported quarter. Its earnings outpaced the Zacks Consensus Estimate by 28.7%, on average, in the trailing four quarters.
Ralph Lauren Corporation Price and EPS Surprise
Ralph Lauren Corporation price-eps-surprise | Ralph Lauren Corporation Quote
Factors to Note
Ralph Lauren has been gaining from brand strength, solid demand and expansion across all channels and regions. The company’s strategy of product elevation, acquisition of full-priced consumers, favorable channel and geographic mix, as well as ramping up of its targeting and personalization efforts, is likely to have supported AUR growth in the quarter under review.
The company’s focus on expanding digital and omni-channel capabilities via investments in mobile, omni-channel and fulfillment bodes well. Strength across owned and wholesale digital channels globally is likely to have been a key growth driver. Some other notable efforts on the online front are virtual selling appointments, “buy online, pick up in store,” endless aisle product availability, the introduction of additional digital sites in key markets, investments in AI-powered targeting and consumer acquisition.
These factors, along with the company’s first-ever full catalog Ralph Lauren mobile app, are likely to have aided the top line in the quarter under review. On its last reported quarter’s earnings call, management expected year-over-year revenue growth of low to mid-single digits at cc for the third quarter of fiscal 2023.
However, Ralph Lauren has been reeling under the negative impacts of higher freight and global supply-chain delays, which are anticipated to have dented margins in the fiscal third quarter. Also, unfavorable currency fluctuations are likely to have been concerning. The company earlier expected the unfavorable currency to negatively impact revenues by 780 bps, the gross margin by 170 bps and the operating margin by 180 bps in the to-be-reported quarter. These are likely to have impacted the bottom-line performance in the said quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Ralph Lauren this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ralph Lauren has a Zacks Rank #2 and an Earnings ESP of +0.34%.
Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) currently has an Earnings ESP of +18.48% and a Zacks Rank #3. BJ is likely to register bottom and top-line growth when it reports fourth-quarter fiscal 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.9 billion, suggesting 12.5% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal fourth-quarter earnings is pegged at 88 cents, suggesting 10% growth from 80 cents reported in the year-ago quarter. The consensus mark has moved down 2.3% in the past 30 days.
Crocs (CROX - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank #3. CROX is likely to register top-line growth when it reports fourth-quarter 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $938.5 million, suggesting 60% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Crocs' fourth-quarter earnings is pegged at $2.15, suggesting no year-over-year change. The consensus mark has moved up 7% in the past 30 days.
Calavo Growers (CVGW - Free Report) currently has an Earnings ESP of +8.33% and a Zacks Rank #3. CVGW is likely to register a top-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Calavo Growers’ quarterly revenues is pegged at $277 million, calling for growth of 0.9% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly EPS of 24 cents suggests a significant increase from the loss per share of 2 cents reported in the year-ago quarter. CVGW has a trailing four-quarter negative earnings surprise of 27.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.