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Here's How Ralph Lauren (RL) is Placed Ahead of Q4 Earnings
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Ralph Lauren Corporation (RL - Free Report) is set to report fourth-quarter fiscal 2024 results on May 23, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.55 billion, which indicates an increase of 0.8% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.65 per share, which suggests growth of 83.3% from the year-earlier levels. The consensus mark for earnings has moved up 1.2% in past seven days.
In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 18.1%. Ralph Lauren has a trailing four-quarter earnings surprise of 18.7%, on average.
RL has been witnessing strength in its digital and omni-channel business. Prioritizing people and culture, best-in-class digital technology and analytics, superior operational capabilities, a powerful balance sheet and premium pricing strategy are few of growth drivers that are likely to benefit its results for the upcoming quarter.
The company's strategy centers on building a sustainable and resilient model with diverse drivers that position it well for growth and value creation. Gains from these initiatives are expected to get reflected in its top and bottom-line performance for the fiscal fourth quarter.
Ralph Lauren has been benefiting from strong brand recognition, robust demand and expansion across all channels and regions. It has achieved significant growth in new customer acquisition and loyalty, adding 1.7 million new consumers to its direct-to-consumer (DTC) business in the fiscal third quarter. This underscores the effectiveness of the company's strategies and strong appeal of its products, which is expected to get reflected in to to-be-reported quarter.
On its last reported quarter’s earnings call, management anticipated constant-currency revenues to rise low single-digits for fiscal 2024. For the fiscal fourth quarter, it suggested revenue growth of 2%, on a constant-currency basis.
RL predicted operating margin to grow 350-400 basis points (bps) on a constant-currency basis and gross margin to expand 100-150 bps, more than offsetting the higher operating expenses. It expected fiscal 2024 gross margin to increase 140-180 bps in constant currency, gaining from favorable freight costs, solid AUR, a favorable channel and geographic mix, more than offsetting continued product cost inflation. Ralph Lauren expected operating margin for fiscal 2024 to expand 30-50 bps in constant currency to 12.3-12.5%.
Our model estimates adjusted gross margin to expand 350 bps year over year in the fiscal fourth quarter and 160 bps for fiscal 2024. We expect adjusted operating margin to expand 320 bps for fiscal fourth quarter and 30 bps for fiscal 2024.
Management forecast a modest sequential improvement in North America in the fiscal fourth quarter, with solid trends in DTC offsetting the softness in wholesale.
What the Zacks Model Unveils
Our proven model predicts a likely 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 odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Ralph Lauren currently has an Earnings ESP of +0.76% and a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other stocks that investors may consider, as our model suggests that these, too, have the right combination of elements to post earnings beat this season.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +5.10% and a Zacks Rank #2. The Zacks Consensus Estimate for quarterly earnings per share of $1.54 suggests a rise of 294.9% from the year-earlier levels. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for revenues is pegged at $940 million, indicating a jump of 12.4% from the figure reported in the year-ago quarter. ANF has an average earnings surprise of 715.6 % in the trailing four quarters.
American Eagle Outfitters Inc (AEO - Free Report) currently has an Earnings ESP of +6.84% and holds a Zacks Rank #3. The Zacks Consensus Estimate for quarterly earnings per share of 27 cents suggests a rise of 58.8% from the year-ago Zactuals.
The consensus mark for revenues is pegged at $1.2 billion, indicating an increase of 5.9% from the figure reported in the prior-year quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +3.52% and a Zacks Rank #2. The Zacks Consensus Estimate for revenues is pegged at $12.5 billion, suggesting a rise of 5.8% from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings per share of 56 cents per share, indicates a rise of 13.1% from the year-earlier levels. TJX has an average earnings surprise of 6.3% in the trailing four quarters.
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Here's How Ralph Lauren (RL) is Placed Ahead of Q4 Earnings
Ralph Lauren Corporation (RL - Free Report) is set to report fourth-quarter fiscal 2024 results on May 23, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.55 billion, which indicates an increase of 0.8% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.65 per share, which suggests growth of 83.3% from the year-earlier levels. The consensus mark for earnings has moved up 1.2% in past seven days.
In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 18.1%. Ralph Lauren has a trailing four-quarter earnings surprise of 18.7%, on average.
Ralph Lauren Corporation Price and EPS Surprise
Ralph Lauren Corporation price-eps-surprise | Ralph Lauren Corporation Quote
Factors to Consider
RL has been witnessing strength in its digital and omni-channel business. Prioritizing people and culture, best-in-class digital technology and analytics, superior operational capabilities, a powerful balance sheet and premium pricing strategy are few of growth drivers that are likely to benefit its results for the upcoming quarter.
The company's strategy centers on building a sustainable and resilient model with diverse drivers that position it well for growth and value creation. Gains from these initiatives are expected to get reflected in its top and bottom-line performance for the fiscal fourth quarter.
Ralph Lauren has been benefiting from strong brand recognition, robust demand and expansion across all channels and regions. It has achieved significant growth in new customer acquisition and loyalty, adding 1.7 million new consumers to its direct-to-consumer (DTC) business in the fiscal third quarter. This underscores the effectiveness of the company's strategies and strong appeal of its products, which is expected to get reflected in to to-be-reported quarter.
On its last reported quarter’s earnings call, management anticipated constant-currency revenues to rise low single-digits for fiscal 2024. For the fiscal fourth quarter, it suggested revenue growth of 2%, on a constant-currency basis.
RL predicted operating margin to grow 350-400 basis points (bps) on a constant-currency basis and gross margin to expand 100-150 bps, more than offsetting the higher operating expenses. It expected fiscal 2024 gross margin to increase 140-180 bps in constant currency, gaining from favorable freight costs, solid AUR, a favorable channel and geographic mix, more than offsetting continued product cost inflation. Ralph Lauren expected operating margin for fiscal 2024 to expand 30-50 bps in constant currency to 12.3-12.5%.
Our model estimates adjusted gross margin to expand 350 bps year over year in the fiscal fourth quarter and 160 bps for fiscal 2024. We expect adjusted operating margin to expand 320 bps for fiscal fourth quarter and 30 bps for fiscal 2024.
Management forecast a modest sequential improvement in North America in the fiscal fourth quarter, with solid trends in DTC offsetting the softness in wholesale.
What the Zacks Model Unveils
Our proven model predicts a likely 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 odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Ralph Lauren currently has an Earnings ESP of +0.76% and a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other stocks that investors may consider, as our model suggests that these, too, have the right combination of elements to post earnings beat this season.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +5.10% and a Zacks Rank #2. The Zacks Consensus Estimate for quarterly earnings per share of $1.54 suggests a rise of 294.9% from the year-earlier levels. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for revenues is pegged at $940 million, indicating a jump of 12.4% from the figure reported in the year-ago quarter. ANF has an average earnings surprise of 715.6 % in the trailing four quarters.
American Eagle Outfitters Inc (AEO - Free Report) currently has an Earnings ESP of +6.84% and holds a Zacks Rank #3. The Zacks Consensus Estimate for quarterly earnings per share of 27 cents suggests a rise of 58.8% from the year-ago Zactuals.
The consensus mark for revenues is pegged at $1.2 billion, indicating an increase of 5.9% from the figure reported in the prior-year quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +3.52% and a Zacks Rank #2. The Zacks Consensus Estimate for revenues is pegged at $12.5 billion, suggesting a rise of 5.8% from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings per share of 56 cents per share, indicates a rise of 13.1% from the year-earlier levels. TJX has an average earnings surprise of 6.3% in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.