Ralph Lauren (RL) Tops Q4 EPS by 7c, Beats on Revenues

Ralph Lauren (NYSE: RL) reported Q4 EPS of $0.90, $0.07 better than the analyst estimate of $0.83. Revenue for the quarter came in at $1.53 billion versus the consensus estimate of $1.48 billion.

“As we reflect on the year, I am incredibly proud of what the team is doing to elevate and energize our brand around the world,” said Ralph Lauren, Executive Chairman and Chief Creative Officer. “Patrice and I have developed a strong partnership over the past year and I am confident that we are on the right path as we kick off our 50th anniversary celebration and build the future of our iconic Company and brand.”

“We delivered on our commitments for the fourth quarter and full year, and we made strong operational progress,” said Patrice Louvet, President and Chief Executive Officer. “We start the new year with a solid foundation – including a clear strategic plan to deliver long-term growth and value creation, an engaged global organization, and a strong balance sheet. We look forward to discussing our plan in more detail at our Investor Day on June 7th. Ralph and I are also pleased to welcome Michael George, who has recently joined our Board of Directors, and Angela Ahrendts, who will be nominated for election to join our Board in August.”

Full Year Fiscal 2019 and First Quarter Outlook

The full year Fiscal 2019 and first quarter guidance excludes restructuring-related and other charges.

For Fiscal 2019, net revenue is expected to decrease low single-digits in constant currency. Foreign currency is expected to have minimal impact on revenue growth in Fiscal 2019.

The Company expects operating margin for Fiscal 2019 to be up slightly in constant currency driven by gross margin expansion. Foreign currency is expected to have minimal impact on operating margin in Fiscal 2019.

In the first quarter of Fiscal 2019, the Company expects net revenue to be flat to down slightly in constant currency. Foreign currency is expected to benefit revenue growth by approximately 150-200 basis points in the first quarter of Fiscal 2019.

Operating margin for the first quarter of Fiscal 2019 is expected to be up slightly in constant currency. Foreign currency is estimated to benefit operating margin by 20-40 basis points in the first quarter.

The full year Fiscal 2019 tax rate is estimated at approximately 22%. First quarter of Fiscal 2019 tax rate is estimated at approximately 18%.

We are planning 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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