Financial Performance - Second quarter revenue increased 6% to $1.7 billion on a reported basis, with a 10% growth in global direct-to-consumer comparable store sales[1][6] - Earnings per diluted share for the second quarter were $2.31, up 5% year-over-year on a reported basis, and $2.54, up 21% on an adjusted basis[1][14] - Net revenues for the three months ended September 28, 2024, increased to $1,726.0 million, a 5.7% increase compared to $1,633.0 million for the same period in 2023[34] - Gross profit for the six months ended September 28, 2024, was $2,221.5 million, up from $2,102.1 million in the prior year, reflecting a strong performance[34] - Operating income for the three months ended September 28, 2024, was $178.9 million, compared to $164.5 million in the same period last year, indicating a growth of 8.2%[34] - The company reported a net income of $147.9 million for the three months ended September 28, 2024, slightly up from $146.9 million in the prior year[34] - Net revenues for the six months ended September 28, 2024, were reported at $3,238.2 million, with a gross profit of $2,221.5 million, resulting in a gross profit margin of 68.6%[46] - Operating income for the same period was $387.4 million, with an operating margin of 12.0%[46] - Net income for the six months ended September 28, 2024, was $316.5 million, translating to a net income per diluted common share of $4.93[46] Revenue by Geography - Revenue growth by geography included Asia up 9% to $380 million, Europe up 7% to $566 million, and North America up 3% to $739 million[5][7][8] - North America segment revenues increased by 3.0% to $739.5 million for the three months ended September 28, 2024, compared to $717.8 million in the same period last year[37] - Europe segment revenues grew by 7.4% to $565.9 million for the three months ended September 28, 2024, compared to $526.8 million in the same period last year[39] - Asia segment revenues increased by 9.1% to $380.2 million for the three months ended September 28, 2024, compared to $348.4 million in the same period last year[39] - North America contributed $739.5 million to net revenues, while Europe and Asia contributed $565.9 million and $380.2 million, respectively[45] Shareholder Returns - The company returned approximately $375 million to shareholders through dividends and stock repurchases year-to-date[1][16] - The company declared a dividend of $0.825 per share for the three months ended September 28, 2024, up from $0.75 per share in the prior year[34] Assets and Liabilities - Total assets increased to $6,800.0 million as of September 28, 2024, compared to $6,602.6 million on March 30, 2024, and $6,723.1 million on September 30, 2023[33] - Cash and cash equivalents decreased to $1,355.0 million from $1,662.2 million in March 2024 and $1,381.8 million in September 2023[33] - Current liabilities increased significantly to $2,092.4 million from $1,467.2 million in March 2024 and $1,610.4 million in September 2023[33] - Long-term debt decreased to $742.2 million from $1,140.5 million in March 2024 and $1,139.5 million in September 2023[33] - Retained earnings increased to $7,265.4 million from $7,051.6 million in March 2024 and $6,779.7 million in September 2023[33] - Total equity slightly decreased to $2,442.3 million from $2,450.3 million in March 2024 and increased from $2,369.2 million in September 2023[33] Inventory Management - Inventory at the end of the second quarter was $1.1 billion, down 6% compared to the prior year, indicating strategic reductions in North America[16] - Inventories rose to $1,127.9 million, up from $902.2 million in March 2024 and down from $1,195.3 million in September 2023[33] - Future strategies include managing inventory levels effectively and responding to changing consumer demands[30] Direct-to-Consumer Strategy - The company acquired 1.5 million new consumers in direct-to-consumer businesses, with over 62 million social media followers, reflecting a low double-digit increase from last year[3] - The company is focused on expanding its direct-to-consumer presence and enhancing digital capabilities[30] - The total number of directly operated stores globally increased to 570 as of September 28, 2024, compared to 564 a year earlier[44] - The company reported a total of 238 Ralph Lauren stores in Asia, an increase from 128 stores in the previous year[44] Operating Expenses - The company recorded total other operating expenses of $(1,834.1) million for the six months ended September 28, 2024, reflecting a significant impact on overall profitability[46] - Total adjusted other operating expenses, net excluding marketing expenses for the three months ended September 30, 2023, were $763.5 million, with an operating expense margin of 46.8%[57] - The company reported total other operating expenses, net as adjusted (including marketing) of $896.6 million for the same period[57] - The operating expense margin for the three months ended September 30, 2023, was 54.9% when including marketing expenses[57] Guidance and Future Outlook - The company expects full year Fiscal 2025 revenue growth in the range of 3% to 4%, with operating margin expansion of approximately 110 to 130 basis points[19][20] - Capital expenditures for Fiscal 2025 are projected to be approximately $250 million to $300 million[22] - Full year Fiscal 2025 guidance excludes potential restructuring-related and other charges that may be incurred in future periods[61] - The company is unable to provide a full reconciliation of non-U.S. GAAP financial measures to U.S. GAAP due to the uncertain nature of potential future charges[61]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

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]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks ...

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]