We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ralph Lauren Q4 Earnings Coming Up: Is Now the Right Time to Buy?
Read MoreHide Full Article
Ralph Lauren Corporation (RL - Free Report) is set to report fourth-quarter fiscal 2025 results on May 22, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.63 billion, which indicates growth of 4.1% from the year-ago quarter’s reported figure.
The consensus estimate for earnings is pegged at $1.96 per share, which indicates growth of 14.6% from the year-earlier actual. The consensus mark for earnings has moved up by a penny in the past 30 days.
Ralph Lauren Corporation Price, Consensus and EPS Surprise
In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 7.6%. Ralph Lauren has a trailing four-quarter earnings surprise of 6.5%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Key Factors Likely to Have Impacted RL’s Q4 Performance
Ralph Lauren’s quarterly performance is likely to have gained from a strong brand presence, a diverse product portfolio and expanding e-commerce capabilities, which have been strengthening its market position. The company's growing store footprint, coupled with its focus on innovation and integration of AI technology, reflects its commitment to staying ahead in the evolving fashion industry and achieving sustained growth.
RL has been experiencing growth in its digital and omnichannel business, significantly increasing customer acquisition and loyalty. The company added 1.9 million consumers to its direct-to-consumer business in the preceding quarter, highlighting the effectiveness of its strategies and the strong appeal of its products, which is expected to have aided the fiscal fourth-quarter performance. Such positives are expected to be reflected in its top- and bottom-line results.
On the last reported quarter’s earnings call, management was optimistic about business momentum and executing the long-term game plan, continuing to elevate the brand and strengthen its positioning in the marketplace. For the fiscal fourth quarter, management anticipates revenues to grow nearly 6-7% on a cc basis. Operating margin is expected to expand around 120-140 bps in cc, driven by gross margin expansion of 80-120 bps and slight operating expense leverage. Wholesale is projected to continue its positive trajectory, with North America sell-in aligning more closely with sell-out, and Europe wholesale receipts shifting to the second half of fiscal 2025.
For fiscal 2025, the company expects revenue growth (at cc) of 6-7% year over year, compared with the prior estimate of 3-4% growth. Operating margin is likely to expand around 120-160 bps in cc on higher gross margins of about 130 to 170 bps.
However, Ralph Lauren has been facing challenges stemming from its extensive international exposure, particularly due to fluctuating foreign exchange rates. the company's global footprint makes it vulnerable to currency volatility, and the strengthening U.S. dollar has emerged as a notable financial headwind. This currency shift has adversely impacted both its revenues and earnings.
For fiscal 2025, the stronger dollar is expected to reduce revenues by approximately 100 to 150 basis points. The pressure is even more pronounced in the fourth quarter, where foreign exchange is projected to cut revenues by about 300 bps. In addition to the top-line impact, currency headwinds are also forecasted to compress margins, with gross and operating margins expected to be reduced by 30 to 50 bps for the full fiscal year, and by a sharper 60 to 80 bps in the fourth quarter. These currency-related pressures are weighing on Ralph Lauren’s overall financial performance despite its underlying operational strengths.
What the Zacks Model Unveils for RL Stock
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, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Ralph Lauren currently has an Earnings ESP of +2.72% and a Zacks Rank of 3.
Valuation Picture of RL Stock
Ralph Lauren's stock is trading at a premium valuation relative to the industry. Going by the price-to-earnings ratio, the stock is currently trading at 19.56X on a forward 12-month basis, higher than 12.67X of the Textile - Apparel industry. Also, it is trading higher than its median of 16.42X.
The recent market movements show that RL shares have risen 29.1% in the past six months compared with the industry's 3.8% decline.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +4.18% and a Zacks Rank of 3. FIVE is likely to register a top-line increase when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $961.1 billion, indicating an 18.4% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Five Below’s earnings is pegged at 80 cents per share, implying a 33.3% jump from the year-ago quarter. FIVE delivered an earnings surprise of 40.5% in the last quarter.
Gap (GAP - Free Report) has an Earnings ESP of +5.58% and a Zacks Rank of 3 at present. GAP is likely to register top-line growth when it releases first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.42 billion, which implies growth of 0.8% from the figure reported in the year-ago quarter.
The consensus estimate for GAP’s quarterly earnings has increased by a penny in the past 30 days to 44 cents per share, implying growth of 7.3% from the year-ago quarter’s number. GAP delivered an earnings surprise of 77.5%, on average, in the trailing four quarters.
American Eagle Outfitters Inc. (AEO - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3 at present. AEO is likely to register a top-line decline when it releases first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.08 billion, which implies a decline of 5.30% from the figure reported in the year-ago quarter.
The consensus estimate for AEO’s quarterly earnings has remained flat in the past 30 days to 11 cents per share, implying a dip of 67.7% from the year-ago quarter’s number. AEO delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ralph Lauren Q4 Earnings Coming Up: Is Now the Right Time to Buy?
Ralph Lauren Corporation (RL - Free Report) is set to report fourth-quarter fiscal 2025 results on May 22, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.63 billion, which indicates growth of 4.1% from the year-ago quarter’s reported figure.
The consensus estimate for earnings is pegged at $1.96 per share, which indicates growth of 14.6% from the year-earlier actual. The consensus mark for earnings has moved up by a penny in the past 30 days.
Ralph Lauren Corporation Price, Consensus and EPS Surprise
Ralph Lauren Corporation price-consensus-eps-surprise-chart | Ralph Lauren Corporation Quote
In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 7.6%. Ralph Lauren has a trailing four-quarter earnings surprise of 6.5%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Key Factors Likely to Have Impacted RL’s Q4 Performance
Ralph Lauren’s quarterly performance is likely to have gained from a strong brand presence, a diverse product portfolio and expanding e-commerce capabilities, which have been strengthening its market position. The company's growing store footprint, coupled with its focus on innovation and integration of AI technology, reflects its commitment to staying ahead in the evolving fashion industry and achieving sustained growth.
RL has been experiencing growth in its digital and omnichannel business, significantly increasing customer acquisition and loyalty. The company added 1.9 million consumers to its direct-to-consumer business in the preceding quarter, highlighting the effectiveness of its strategies and the strong appeal of its products, which is expected to have aided the fiscal fourth-quarter performance. Such positives are expected to be reflected in its top- and bottom-line results.
On the last reported quarter’s earnings call, management was optimistic about business momentum and executing the long-term game plan, continuing to elevate the brand and strengthen its positioning in the marketplace. For the fiscal fourth quarter, management anticipates revenues to grow nearly 6-7% on a cc basis. Operating margin is expected to expand around 120-140 bps in cc, driven by gross margin expansion of 80-120 bps and slight operating expense leverage. Wholesale is projected to continue its positive trajectory, with North America sell-in aligning more closely with sell-out, and Europe wholesale receipts shifting to the second half of fiscal 2025.
For fiscal 2025, the company expects revenue growth (at cc) of 6-7% year over year, compared with the prior estimate of 3-4% growth. Operating margin is likely to expand around 120-160 bps in cc on higher gross margins of about 130 to 170 bps.
However, Ralph Lauren has been facing challenges stemming from its extensive international exposure, particularly due to fluctuating foreign exchange rates. the company's global footprint makes it vulnerable to currency volatility, and the strengthening U.S. dollar has emerged as a notable financial headwind. This currency shift has adversely impacted both its revenues and earnings.
For fiscal 2025, the stronger dollar is expected to reduce revenues by approximately 100 to 150 basis points. The pressure is even more pronounced in the fourth quarter, where foreign exchange is projected to cut revenues by about 300 bps. In addition to the top-line impact, currency headwinds are also forecasted to compress margins, with gross and operating margins expected to be reduced by 30 to 50 bps for the full fiscal year, and by a sharper 60 to 80 bps in the fourth quarter. These currency-related pressures are weighing on Ralph Lauren’s overall financial performance despite its underlying operational strengths.
What the Zacks Model Unveils for RL Stock
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, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Ralph Lauren currently has an Earnings ESP of +2.72% and a Zacks Rank of 3.
Valuation Picture of RL Stock
Ralph Lauren's stock is trading at a premium valuation relative to the industry. Going by the price-to-earnings ratio, the stock is currently trading at 19.56X on a forward 12-month basis, higher than 12.67X of the Textile - Apparel industry. Also, it is trading higher than its median of 16.42X.
The recent market movements show that RL shares have risen 29.1% in the past six months compared with the industry's 3.8% decline.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +4.18% and a Zacks Rank of 3. FIVE is likely to register a top-line increase when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $961.1 billion, indicating an 18.4% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Five Below’s earnings is pegged at 80 cents per share, implying a 33.3% jump from the year-ago quarter. FIVE delivered an earnings surprise of 40.5% in the last quarter.
Gap (GAP - Free Report) has an Earnings ESP of +5.58% and a Zacks Rank of 3 at present. GAP is likely to register top-line growth when it releases first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.42 billion, which implies growth of 0.8% from the figure reported in the year-ago quarter.
The consensus estimate for GAP’s quarterly earnings has increased by a penny in the past 30 days to 44 cents per share, implying growth of 7.3% from the year-ago quarter’s number. GAP delivered an earnings surprise of 77.5%, on average, in the trailing four quarters.
American Eagle Outfitters Inc. (AEO - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3 at present. AEO is likely to register a top-line decline when it releases first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.08 billion, which implies a decline of 5.30% from the figure reported in the year-ago quarter.
The consensus estimate for AEO’s quarterly earnings has remained flat in the past 30 days to 11 cents per share, implying a dip of 67.7% from the year-ago quarter’s number. AEO delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.