Ralph Lauren (RL) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and ...

Company Overview - Ralph Lauren Corp. is a major designer, marketer, and distributor of premium lifestyle products across North America, Europe, Asia, and internationally, offering a diverse range of products including apparel, footwear, accessories, and home furnishings [14] - The company has a strong portfolio of globally recognized brand names such as Polo Ralph Lauren, Ralph Lauren Purple Label, and Lauren Ralph Lauren [14] Investment Analysis - Ralph Lauren (RL) currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B, indicating a moderate investment outlook [15] - The stock has a Momentum Style Score of B, with shares increasing by 0.9% over the past four weeks [15] - For fiscal 2025, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.01 to $11.09 per share [15] - The company boasts an average earnings surprise of 10%, suggesting potential for positive performance [15] Investment Recommendation - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Ralph Lauren should be considered for investors' short lists [16]

Ralph Lauren Corporation (RL) seems to be in a good spot on the back of its sturdy strategic endeavors. The company has been making significant progress in expanding its digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. Ralph Lauren's "Next Great Chapter" plan appears encouraging too. Ralph Lauren has been expanding its connected retail capabilities, including virtual selling appointments, buy online, pick up in store, and endless aisle product availability. Th ...

Ralph Lauren has been impressive in the stock market, demonstrating a 42.9% jump in the past year against the industry's decline of 4%. The Zacks Rank #3 (Hold) company also outperformed the broader sector and S&P 500's growth of 5% and 24.8%, respectively. Ralph Lauren's digital businesses, including its directly operated sites, departmentstore.com, pure players and social commerce, have been performing well. The company added more than five million new consumers to its DTC business in fiscal 2024. Its fol ...

Shares of the upscale clothing company witnessed a gain of 9.58% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.82% and the S&P 500's gain of 3.34%. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Ralph Lauren. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the compa ...

Ralph Lauren Corporation (RL) seems to be in good shape, thanks to its sturdy strategic endeavors. The company has been making significant progress in expanding its digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. Ralph Lauren's "Next Great Chapter" plan appears encouraging too. Strategies in Detail Image Source: Zacks Investment Research As part of the "Next Great Chapter" plan, the company has completed the transition of Chaps to a licensed business, thus co ...

RL Ralph Lauren Key Points Premium apparel maker Ralph Lauren Co. NYSE: RL reported its fiscal Q4 2024 earnings report with lowered guidance, causing a predictability gap in shares the following morning. However, the initial drop to $159.10 reversed as the market reassessed the results, turning sentiment bullish and causing shares to surge back up to $173.45 in the following days. Investors are wondering what caused the sentiment reversal and if the gains will stick. Ralph Lauren competes in the consumer di ...

Asia generated $394.3 million in revenues for the company in the last quarter, constituting 25.2% of the total. This represented a surprise of -5.01% compared to the $415.08 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $446.4 million (23.1%), and in the year-ago quarter, it contributed $390 million (25.3%) to the total revenue. International Market Revenue Projections Wall Street analysts expect Ralph Lauren to report a total revenue of $1.53 billion ...

Ralph Lauren Corporation (RL) has posted impressive fourth-quarter fiscal 2024 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Results have gained from robust demand and brand strength. The company has been on track with its Next Great Chapter: Accelerate plan. RL has reported adjusted earnings per share of $1.71, which surpassed the Zacks Consensus Estimate of $1.65. Also, the bottom line increased from earnings of 90 cents per share reported in the year-earlier quarter. Net re ...

Financial Data and Key Metrics Changes - The company achieved 3% top line growth for fiscal year '24, with 40 basis points of operating margin expansion, resulting in over 20% adjusted EPS growth [2][36] - Adjusted gross margin expanded by 510 basis points in Q4 and 210 basis points for the full year, driven by low double-digit AUR growth and lower freight expenses [37][40] - Operating margin is expected to expand by approximately 100 to 120 basis points to 13.5% to 13.7% for fiscal '25 [10][89] Business Line Data and Key Metrics Changes - North America revenue grew 2% in Q4, with retail comps increasing by 3%, while wholesale declined by 2% [41][42] - Europe saw slight revenue growth in Q4, with retail comps up 12% and wholesale down 8% due to timing issues [43][44] - Asia led growth with a 7% revenue increase, driven by strong performance in China, which saw sales up low double digits [45][5] Market Data and Key Metrics Changes - The company expects Asia to lead growth in fiscal '25, with revenues up high-single digits, followed by Europe and North America with low-single-digit growth [9][7] - China now represents 7% of total company sales, having more than doubled since pre-pandemic levels, with significant growth opportunities ahead [5][103] Company Strategy and Development Direction - The company focuses on three strategic pillars: elevating the lifestyle brand, driving core business, and winning in key cities with a consumer ecosystem [2][12] - The pivot to direct-to-consumer (DTC) channels continues, now representing about two-thirds of total business, which allows for better brand expression and customer engagement [47][48] - The company plans to invest in digital technology and analytics to enhance inventory management and sales conversion [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic challenges, including inflation and supply chain disruptions, but remains optimistic about achieving growth targets [7][8] - For fiscal '25, the company expects constant-currency revenues to increase by 2% to 3%, with stronger growth anticipated in DTC channels [7][8] - Management emphasizes the importance of agility and diversified growth drivers in navigating the current environment [17] Other Important Information - The company returned approximately $600 million to shareholders through dividends and share repurchases in fiscal '24, with a 10% increase in the quarterly dividend announced for fiscal '25 [35] - The company generated over $900 million in free cash flow, exceeding pre-pandemic levels, and ended the year with $1.8 billion in cash and short-term investments [46] Q&A Session All Questions and Answers Question: Can you talk about what you are seeing in the business that will enable continued momentum? - Management noted that the strategy is working, with continued brand elevation and strong consumer connection across various markets [16] Question: How are you thinking about direct-to-consumer channel growth versus wholesale channel growth? - Management expects DTC to lead growth in fiscal '25, while wholesale is anticipated to improve but still face challenges [18][89] Question: How do you see the brand positioned today versus your ultimate goal in both the US and Europe? - Management expressed confidence in brand positioning and noted strong consumer perception data, with significant runway for growth [72] Question: How do you think about AUR versus units in the North America channel? - Management indicated that AUR growth is expected to continue, driven by brand mix and channel mix, despite challenges in unit sales [85][68]