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Ralph Lauren's Second Quarter Earnings Report
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Ralph Lauren (NYSE:RL) announced its results for the most recent quarter on November 2, 2012. Polo Ralph Lauren designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: How To Decode A Company's Earnings Reports
The Numbers: Ralph Lauren beat expectations with its latest EPS and revenue figures. The company reported $2.29 per share versus the $2.15 per share estimate and revenues of $1.86 billion versus the $1.6 billion estimate. Revenue fell 2.2% from the same period last year while EPS is down 6.9%. Slumping revenue in the last quarter ends Ralph Lauren's streak of four consecutive quarters of revenue increases. Ralph Lauren reported net income of $214 million during the second quarter. This is a 8.4% decline from last year. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Management Quote: "Our year-to-date results affirm the tremendous resilience of our business," said Ralph Lauren, Chairman and Chief Executive Officer. "We continue to make excellent progress on our long-term growth objectives as we invest along many dimensions, including new stores and e-commerce platforms and emerging merchandise categories and regions. Our clarity of vision and purpose has us focused on the most compelling opportunities that we believe will create significant shareholder value over the long term."
A Look Back: Margins increased in the first quarter after dropping the quarter before. Gross margin grew 2.2 percentage points from the year-earlier quarter to 58.8%. In the fourth quarter of the last fiscal year, the figure rose 0.7 percentage point to 62.3% from the year earlier quarter.
Net income has increased 8% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 29% from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the third quarter has fallen from $2.31 per share to $2.27, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $7.91 a share to $7.87 over the last 90 days.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: How To Decode A Company's Earnings Reports
The Numbers: Ralph Lauren beat expectations with its latest EPS and revenue figures. The company reported $2.29 per share versus the $2.15 per share estimate and revenues of $1.86 billion versus the $1.6 billion estimate. Revenue fell 2.2% from the same period last year while EPS is down 6.9%. Slumping revenue in the last quarter ends Ralph Lauren's streak of four consecutive quarters of revenue increases. Ralph Lauren reported net income of $214 million during the second quarter. This is a 8.4% decline from last year. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.
Management Quote: "Our year-to-date results affirm the tremendous resilience of our business," said Ralph Lauren, Chairman and Chief Executive Officer. "We continue to make excellent progress on our long-term growth objectives as we invest along many dimensions, including new stores and e-commerce platforms and emerging merchandise categories and regions. Our clarity of vision and purpose has us focused on the most compelling opportunities that we believe will create significant shareholder value over the long term."
A Look Back: Margins increased in the first quarter after dropping the quarter before. Gross margin grew 2.2 percentage points from the year-earlier quarter to 58.8%. In the fourth quarter of the last fiscal year, the figure rose 0.7 percentage point to 62.3% from the year earlier quarter.
Net income has increased 8% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 29% from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the third quarter has fallen from $2.31 per share to $2.27, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $7.91 a share to $7.87 over the last 90 days.
by
Investopedia Staff
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