Ralph Lauren (RL) Tops Q2 EPS by 10c, Offers Guidance

Ralph Lauren (NYSE: RL) reported Q2 EPS of $2.26, $0.10 better than the analyst estimate of $2.16. Revenue for the quarter came in at $1.69 billion versus the consensus estimate of $1.65 billion.

Full Year Fiscal 2019 and Third Quarter Outlook

The full year Fiscal 2019 and third quarter guidance excludes restructuring-related and other charges, as described in the “Non-U.S. GAAP Financial Measures” section of this press release.

For Fiscal 2019, the Company now expects net revenue to be approximately flat to up slightly in constant currency. Foreign currency is expected to have about 75 basis points of negative impact on revenue growth in Fiscal 2019.

The Company continues to expect operating margin for Fiscal 2019 to be up 40 to 60 basis points in constant currency driven by gross margin expansion. Foreign currency is expected to have minimal impact on operating margin in Fiscal 2019.

In the third quarter of Fiscal 2019, the Company expects net revenue to be up low single digits in constant currency. Foreign currency is expected to pressure revenue growth by about 100 basis points in the third quarter of Fiscal 2019.

Operating margin for the third quarter of Fiscal 2019 is expected to be up about 20 basis points in constant currency. Foreign currency is expected to be a slight benefit to operating margin in the third quarter.

We expect the full year Fiscal 2019 tax rate to be approximately 21%. Third quarter of Fiscal 2019 tax rate is estimated at approximately 22% to 23%.

The Company continues to plan capital expenditures of approximately $275 million for Fiscal 2019.

For earnings history and earnings-related data on Ralph Lauren (RL) click here.

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