Ralph Lauren (RL) Tops Q3 EPS by 41c, Offers Outlook

Ralph Lauren (NYSE: RL) reported Q3 EPS of $2.86, $0.41 better than the analyst estimate of $2.45. Revenue for the quarter came in at $1.8 billion versus the consensus estimate of $1.72 billion.

Full Year Fiscal 2020 and Fourth Quarter Outlook:

The full year Fiscal 2020 and fourth 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 2020, the Company expects net revenue growth in the range of 2% to 3% on a constant currency basis. Foreign currency is expected to negatively impact revenue growth by approximately 110 to 130 basis points in Fiscal 2020. This outlook continues to include the impact of tariffs and business disruptions in Hong Kong but does not include potential impact from the coronavirus outbreak in Asia, given the dynamic situation that we are monitoring closely with regards to our employees, consumers, and supply chain.

The Company now expects operating margin expansion for Fiscal 2020 to be at the high end of our previous guidance of 40 to 60 basis points in constant currency. Foreign currency is expected to negatively impact operating margin by about 10 basis points in Fiscal 2020.

In the fourth quarter of Fiscal 2020, the Company expects net revenue to be up slightly on both a constant currency and reported basis. Foreign currency is expected to negatively impact revenue growth by approximately 50 basis points in the fourth quarter of Fiscal 2020.

Operating margin for the fourth quarter of Fiscal 2020 is expected to be up slightly on both a constant currency and reported basis. Foreign currency is expected to have a minimal impact on operating margin in the fourth quarter.

The Company now expects the full year Fiscal 2020 tax rate to be approximately 20%. The tax rate for the fourth quarter of Fiscal 2020 is estimated at approximately 26%.

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

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