Core Viewpoint - Ralph Lauren Corporation (RL) is expected to report second-quarter fiscal 2025 results on November 7, with revenue estimates at $1.49 billion, reflecting a 0.6% decrease year-over-year, while earnings per share are projected to grow by 14.8% to $2.41 [1][2] Group 1: Performance Expectations - The company's last reported quarter saw earnings surpassing the Zacks Consensus Estimate by 10.2%, with an average trailing four-quarter earnings surprise of 10.3% [2] - Key factors contributing to RL's anticipated performance include strong brand recognition, robust demand, and strategic initiatives aimed at enhancing core business and market opportunities [3] - The "Drive the Core and Expand for More" initiative is expected to bolster the company's performance across all channels and regions [3] Group 2: Digital and Omnichannel Growth - RL has experienced significant growth in its digital and omnichannel business, adding 1.3 million consumers to its direct-to-consumer segment in the previous quarter, which is expected to positively impact fiscal second-quarter results [4] - Management anticipates constant-currency revenue growth in the low-to-mid single digits for the fiscal second quarter, with operating margins projected to expand by 80-120 basis points [5] Group 3: Challenges and Risks - The North America segment, particularly the wholesale channel, has been underperforming, with a projected revenue drop of 0.4% year-over-year due to higher promotions and inflationary pressures [6] - Foreign currency fluctuations are expected to negatively impact gross and operating margins by 40 basis points and 50 basis points, respectively, with a 160 basis points negative impact on revenue [7] Group 4: Valuation and Market Performance - Ralph Lauren's stock is currently trading at a forward price/earnings ratio of 16.38, which is higher than the Textile-Apparel industry's 13.48 and its own median of 14.74 [9] - Over the past three months, RL shares have risen by 24.2%, outperforming the industry's growth of 22.4% [10]

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Company Performance - Ralph Lauren's stock closed at $203.56, reflecting a +0.26% change from the previous day, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, Ralph Lauren shares have appreciated by 4.72%, significantly exceeding the Consumer Discretionary sector's gain of 0.21% and the S&P 500's gain of 1.67% [1] Upcoming Earnings - Ralph Lauren is set to release its earnings on November 7, 2024, with an expected EPS of $2.40, indicating a 14.29% growth year-over-year [2] - The consensus estimate for revenue is $1.67 billion, representing a 2.36% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates project earnings of $11.25 per share and revenue of $6.75 billion, reflecting increases of +9.12% and +1.74% respectively from the previous year [3] - Recent adjustments to analyst estimates for Ralph Lauren suggest a positive outlook for the company's business trends [3] Valuation Metrics - Ralph Lauren is currently trading at a Forward P/E ratio of 18.05, which is lower than the industry's average Forward P/E of 19.77 [6] - The company has a PEG ratio of 1.66, compared to the industry average PEG ratio of 2.14, indicating a favorable valuation relative to expected earnings growth [6] Industry Context - The Textile - Apparel industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 179, placing it in the bottom 29% of over 250 industries [7] - The performance of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries historically outperforming lower-rated ones [7]

Group 1 - Purcell & Lefkowitz LLP is investigating Ralph Lauren Corporation on behalf of its shareholders to determine if the company's directors breached their fiduciary duties related to recent corporate actions [1] - The investigation is aimed at protecting the interests of shareholders and ensuring accountability within the company's governance [1] - Shareholders interested in the investigation can obtain additional information free of charge through the law firm's website or by contacting an attorney directly [2] Group 2 - Purcell & Lefkowitz LLP specializes in representing shareholders who are victims of securities fraud, breaches of fiduciary duty, and other corporate misconduct [3] - The firm emphasizes its commitment to shareholder rights and corporate accountability [3]

Core Viewpoint - Ralph Lauren Corporation (RL) is positioned well due to its digital success and robust strategies, particularly its "Next Great Chapter" plan [1][6] Group 1: Digital Strategy and Growth - Ralph Lauren is expanding its digital reach and omnichannel capabilities through investments in mobile, fulfillment, and connected retail [2] - The company added 1.3 million new consumers via its direct-to-consumer (DTC) businesses in the most recent quarter, with social media followers growing to over 60 million [3] - Global DTC comparable store sales increased by 5% year over year, supported by brand elevation and positive retail comps across all regions [4] Group 2: Strategic Focus - The company is focused on product elevation, personalized promotions, disciplined inventory management, and a favorable channel and geographic mix [5] - Ralph Lauren aims to exceed its top and bottom-line targets under the "Next Great Chapter" plan, which includes a simplified global structure and improved technological capabilities [6] Group 3: Financial Performance and Outlook - For fiscal 2025, Ralph Lauren anticipates low-single-digit revenue growth, translating to a 2-3% rise in revenues, with an expected operating margin increase of 100-120 basis points [9] - The gross margin is projected to increase by 50-100 basis points at constant currency [9] - Despite challenges in the North America wholesale segment, management expects decreases to moderate in the remainder of fiscal 2025 [8]

Core Insights - Ralph Lauren Corporation is well-positioned to capitalize on positive trends in the fashion industry due to its strong digital initiatives and robust strategies [1] Digital Performance - Ralph Lauren's digital business has shown impressive growth, adding 1.3 million new consumers through direct-to-consumer (DTC) channels in Q1 of fiscal 2025 [2] - Social media followers increased to over 60 million, with growth driven by platforms like TikTok, Threads, Instagram, Line, and Douyin [2] - Digital sales rose 14% in Europe and 21% in Asia, while global DTC comparable store sales increased by 5% year over year [3] Strategic Initiatives - The company is enhancing its connected retail capabilities, including features like virtual selling appointments and "buy online, pick up in store" options [4] - Ralph Lauren's strategy focuses on product elevation, personalized promotions, disciplined inventory management, and a favorable geographic mix [5] - The "Next Great Chapter" plan aims to simplify the organizational structure and improve technological capabilities, with expectations to exceed top and bottom-line targets [6] Financial Outlook - Management anticipates low-single-digit revenue growth of 2-3% for fiscal 2025, with operating margins expected to grow by 100-120 basis points at constant currency [11] - The Zacks Consensus Estimate for Q2 fiscal 2025 sales is $1.7 billion, indicating a 2.2% year-over-year growth, while the EPS estimate is $2.39, reflecting a 13.8% increase [12] Challenges - Ralph Lauren faces macroeconomic challenges, including inflationary pressures that have led to higher operating expenses [7] - The North America wholesale segment has struggled, with revenues down 13% year over year in Q1 fiscal 2025 due to lower sales in the off-price channel [8] - Management expects a moderation in North America wholesale decreases as sellout aligns more closely with sell-in [9]

In the latest trading session, Ralph Lauren (RL) closed at $184.76, marking a +0.63% move from the previous day. This change lagged the S&P 500's 1.7% gain on the day. Meanwhile, the Dow experienced a rise of 1.26%, and the technology-dominated Nasdaq saw an increase of 2.51%. Shares of the upscale clothing company have appreciated by 7.92% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.85% and the S&P 500's gain of 1.27%. Market participants will be closely f ...

Core Viewpoint - Ralph Lauren Corporation (RL) has demonstrated significant stock performance, with a 64.1% increase over the past year, outperforming the Consumer Discretionary sector and the S&P 500 index [1][2] Financial Performance - The company is currently priced at $181.44, which is 5.5% below its 52-week high of $192.03 and 67.1% above its 52-week low [1] - Management forecasts mid-to-high-single-digit compounded annual revenue growth in constant currency from fiscal 2022 to 2025, with operating profit growth expected to outpace revenue growth [3] - Operating margin is projected to reach at least 15% by fiscal 2025, supported by modest gross margin improvements and controlled expenses [3] - The company plans to return $2 billion to shareholders through dividends and share repurchases by fiscal 2025 [3] Strategic Initiatives - Ralph Lauren's growth is driven by its 'Next Great Chapter: Accelerate Plan', focusing on elevating its lifestyle brand and expanding its presence in key cities [2] - The company is enhancing its global lifestyle brands by offering premium products that align with evolving consumer preferences [2] - Significant investments in marketing, digital growth, and ecosystem expansion in major cities are ongoing, with direct-to-consumer channels performing well [4] Market Challenges - The company faces macroeconomic challenges, including inflation and supply-chain issues, which may impact gross and operating margins [6] - The North America wholesale business reported a 13% decline in revenues in the first quarter of fiscal 2025, attributed to timing shifts and lower product sales [7] - Management anticipates that wholesale declines will moderate through the remainder of fiscal 2025 [8] Valuation Metrics - Ralph Lauren stock is trading at a forward price/earnings ratio of 15.31, higher than the industry average of 12.38 and its median of 14.48 [9] Earnings Estimates - The Zacks Consensus Estimate for earnings per share (EPS) for fiscal 2025 has been revised up by 1.5% to $11.24, indicating a year-over-year growth of 9% [5] - For fiscal 2026, the EPS estimate has been revised up by 0.2% to $12.56, implying an 11.8% growth year-over-year [5]

Ralph Lauren Corporation (RL) remains well-poised to tap the positive trends in the fashion arena, thanks to its sturdy digital endeavors and other robust strategies. The company has been making significant progress in expanding its digital reach and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. Ralph Lauren's "Next Great Chapter" plan appears encouraging too. Let's delve deep. Ralph Lauren's Digital Success Ralph Lauren's digital business, including its directly-opera ...

It has been about a month since the last earnings report for Ralph Lauren (RL) . Shares have added about 7.3% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Ralph Lauren due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Ralph Lauren's Q1 Earnings Beat, Higher Comps ...