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Ralph Lauren Fourth Quarter Earnings
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Ralph Lauren (NYSE:RL) announced its results for the most recent quarter on May 22, 2012. Polo Ralph Lauren designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything
The Numbers: Ralph Lauren managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported 99 cents per share versus the 85 cents per share estimate and revenues of $1.62 billion versus the $1.6 billion estimate. EPS rose 33.8% while revenue climbed 13.7% from the same period last year. The company's net income for the quarter was $94.4 million. This is 29% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "Fiscal 2012 was another year of spectacular growth for our Company," said Ralph Lauren, Chairman and Chief Executive Officer. "We made significant progress with our international expansion efforts and we launched exciting new products during the year. I am thrilled with the momentum we are gaining with our handbags worldwide and we will continue to invest in innovation and distribution to support this high growth merchandise category. We are in the midst of transforming our presence in Greater China, a region that we believe will become an important driver of growth for us over the long term, and have some magnificent new stores planned for the next several years. As proud as I am of what we've accomplished, I am even more excited about the many compelling opportunities that are still ahead for us," Mr. Lauren added.
A Look Back: Last quarter, gross margins grew by 0.3 percentage point from the year-earlier quarter to 57.1%. This snaps a streak of two consecutive quarters of shrinking margins.
Net income has increased 11.9% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 52.4% from the year-earlier quarter.
Looking Ahead: The outlook for the company's next-quarter performance is unfavorable. Estimates have gone down from an average $2.14 per share to $2.13 over the past seven days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. In the last thirty days, the average estimate for the fiscal year has moved up from $7.04 per share to $7.09.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything
The Numbers: Ralph Lauren managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported 99 cents per share versus the 85 cents per share estimate and revenues of $1.62 billion versus the $1.6 billion estimate. EPS rose 33.8% while revenue climbed 13.7% from the same period last year. The company's net income for the quarter was $94.4 million. This is 29% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "Fiscal 2012 was another year of spectacular growth for our Company," said Ralph Lauren, Chairman and Chief Executive Officer. "We made significant progress with our international expansion efforts and we launched exciting new products during the year. I am thrilled with the momentum we are gaining with our handbags worldwide and we will continue to invest in innovation and distribution to support this high growth merchandise category. We are in the midst of transforming our presence in Greater China, a region that we believe will become an important driver of growth for us over the long term, and have some magnificent new stores planned for the next several years. As proud as I am of what we've accomplished, I am even more excited about the many compelling opportunities that are still ahead for us," Mr. Lauren added.
Net income has increased 11.9% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 52.4% from the year-earlier quarter.
Looking Ahead: The outlook for the company's next-quarter performance is unfavorable. Estimates have gone down from an average $2.14 per share to $2.13 over the past seven days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. In the last thirty days, the average estimate for the fiscal year has moved up from $7.04 per share to $7.09.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
by
Investopedia Staff
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