Polo Ralph Lauren (RL) Q3 Results Shows Why It Is Well Dressed (Update)
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EPS Growth %: +33.8%Financial Fact:
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(Update with comments from analysts)
Fashion company Polo Ralph Lauren (NYSE: RL) reported third-quarter earnings per share of $1.75, 44 cents above the consensus of $1.31.
The earnings per share for the company increased 11 percent from $1.58 in the same quarter last year. Profit increased from $161 million to $177 million.
Revenues came in at $1.37 billion, versus the consensus of $1.31 billion for the makers of clothing brands like Polo, Ralph Lauren and Chaps. Revenue dropped 4 percent from the year-ago quarter.
The company has increased its guidance for the 2010 fiscal year based on the positive numbers. The new guidance for net revenue is now forecasted at a low single-digit drop, from an earlier high-single-digit decline.
"Our results have exceeded our expectations for the first half of the year, reflecting market share gains across products and regions and disciplined operational management," said Roger Farah, President and Chief Operating Officer. ”We are raising our sales expectations for the remainder of the year, but we continue to be cautious with our outlook and are planning accordingly.”
In the third quarter of Fiscal 2010, the Company expects net revenues to decline at a low single digit rate, inclusive of flat to low single digit comparable store sales growth for its retail segment.
Analyst Comments:
Goldman Sachs has maintained a Neutral rating on Polo Ralph Lauren. The analysts note the high marks for the quarter being the higher revenues in both wholesale and retail businesses, along with gross margins widening due to better international trends and better supply chain logistics. Also the lower tax rate for the Company at 26.6 percent as opposed to the analyst’s estimate of 35 percent helped drive the company’s growth in the second quarter
“If concerns around a lower tax rate or higher spending drive shares lower, we would be buyers on any pullback,” Goldman Sachs analysts said.
The second-quarter results have given shares of Polo Ralph Lauren a boost to $78.82, up 2.75 percent in current market movement.
Fashion company Polo Ralph Lauren (NYSE: RL) reported third-quarter earnings per share of $1.75, 44 cents above the consensus of $1.31.
The earnings per share for the company increased 11 percent from $1.58 in the same quarter last year. Profit increased from $161 million to $177 million.
Revenues came in at $1.37 billion, versus the consensus of $1.31 billion for the makers of clothing brands like Polo, Ralph Lauren and Chaps. Revenue dropped 4 percent from the year-ago quarter.
The company has increased its guidance for the 2010 fiscal year based on the positive numbers. The new guidance for net revenue is now forecasted at a low single-digit drop, from an earlier high-single-digit decline.
"Our results have exceeded our expectations for the first half of the year, reflecting market share gains across products and regions and disciplined operational management," said Roger Farah, President and Chief Operating Officer. ”We are raising our sales expectations for the remainder of the year, but we continue to be cautious with our outlook and are planning accordingly.”
In the third quarter of Fiscal 2010, the Company expects net revenues to decline at a low single digit rate, inclusive of flat to low single digit comparable store sales growth for its retail segment.
Analyst Comments:
Goldman Sachs has maintained a Neutral rating on Polo Ralph Lauren. The analysts note the high marks for the quarter being the higher revenues in both wholesale and retail businesses, along with gross margins widening due to better international trends and better supply chain logistics. Also the lower tax rate for the Company at 26.6 percent as opposed to the analyst’s estimate of 35 percent helped drive the company’s growth in the second quarter
“If concerns around a lower tax rate or higher spending drive shares lower, we would be buyers on any pullback,” Goldman Sachs analysts said.
The second-quarter results have given shares of Polo Ralph Lauren a boost to $78.82, up 2.75 percent in current market movement.
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