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Ralph Lauren's First Quarter Earnings Report
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Ralph Lauren (NYSE:RL) announced its results for the first quarter on August 8, 2012. Polo Ralph Lauren designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Ralph Lauren's EPS beat estimates and the company's revenues fell in line with predictions. The company reported $2.03 per share versus the $1.81 per share estimate and revenues of $1.59 billion versus the $1.6 billion estimate. EPS rose 6.8% while revenue climbed 4.4% from the same period last year. Ralph Lauren's revenue has grown during each of the past four quarters on a year-over-year basis. Ralph Lauren's profit for the first quarter was $193.4 million. This is 5.1% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "The growing global appeal of the World of Ralph Lauren is supported by our continued reinvestment in the business," said Ralph Lauren, Chairman and Chief Executive Officer. "Our products are the lifeblood of our success and we are building on our leadership position in apparel to create exciting new avenues of growth with handbags, footwear, watches and jewelry. At the same time, we are expanding our presence in the world's most dynamic markets, particularly in China and online. Our luxury lifestyle positioning is a tremendous asset as we execute on our long-term goals and the passion and dedication of our teams around the world is incredibly invigorating."
A Look Back: Gross margin shrank 0.7 percentage point to 62.3%. The contraction appeared to be driven by increased costs, which rose 6.4% from the year earlier quarter while revenue rose 4.4%.
Net income has increased 20.1% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 52.4% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for second quarter has fallen from $2.81 per share to $2.51. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $8.35 a share to $7.94 over the last 90 days.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Ralph Lauren's EPS beat estimates and the company's revenues fell in line with predictions. The company reported $2.03 per share versus the $1.81 per share estimate and revenues of $1.59 billion versus the $1.6 billion estimate. EPS rose 6.8% while revenue climbed 4.4% from the same period last year. Ralph Lauren's revenue has grown during each of the past four quarters on a year-over-year basis. Ralph Lauren's profit for the first quarter was $193.4 million. This is 5.1% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "The growing global appeal of the World of Ralph Lauren is supported by our continued reinvestment in the business," said Ralph Lauren, Chairman and Chief Executive Officer. "Our products are the lifeblood of our success and we are building on our leadership position in apparel to create exciting new avenues of growth with handbags, footwear, watches and jewelry. At the same time, we are expanding our presence in the world's most dynamic markets, particularly in China and online. Our luxury lifestyle positioning is a tremendous asset as we execute on our long-term goals and the passion and dedication of our teams around the world is incredibly invigorating."
A Look Back: Gross margin shrank 0.7 percentage point to 62.3%. The contraction appeared to be driven by increased costs, which rose 6.4% from the year earlier quarter while revenue rose 4.4%.
Net income has increased 20.1% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 52.4% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for second quarter has fallen from $2.81 per share to $2.51. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $8.35 a share to $7.94 over the last 90 days.
by
Investopedia Staff
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