Fashion brand Ralph Lauren (NYSE:RL) will be reporting earnings tomorrow before market open. Here’s what to look for.
Ralph Lauren beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $1.73 billion, up 5.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS estimates.
Is Ralph Lauren a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ralph Lauren’s revenue to grow 4.1% year on year to $2.01 billion, slowing from the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ralph Lauren has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Ralph Lauren’s peers in the apparel and accessories segment, some have already reported their Q4 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 1.2%, and Columbia Sportswear reported revenues up 3.5%, topping estimates by 1.4%. VF Corp traded up 1.4% following the results.
Read our full analysis of VF Corp’s results here and Columbia Sportswear’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 2.5% on average over the last month. Ralph Lauren’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $246.15 (compared to the current share price of $246.85).
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