How Will Ralph Lauren End Its Fiscal 2016?



Ralph Lauren’s 4Q16 earnings preview

Ralph Lauren (RL) is slated to report its fiscal 4Q16 and fiscal 2016 results on May 12, 2016, for the period ended April 2, 2016.

The company topped Wall Street analysts’ earnings estimates by 14 cents per share in fiscal 3Q16 despite delivering an $84 million revenue miss. The company reported earnings per share of $2.27 on total sales of $1.9 billion. The company’s revenue registered a 4.3% YoY (year-over-year) fall, while its bottom line fell by a whopping 40% during the quarter.

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About Ralph Lauren

Founded in 1967, Ralph Lauren is the third-largest branded apparel company by revenue in the United States, trailing VF Corporation (VFC) and PVH Corporation (PVH).

Polo Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Black Label, Lauren by Ralph Lauren, American Living, Chaps, and Club Monaco are some of the company’s well-known brands.

The company has a strong international presence. It derived 37% of its revenue from outside the United States in fiscal 2015. The company outsources the manufacturing of its products to 700 different manufacturers worldwide and does not directly operate any production facilities.

Ralph Lauren sells its products through wholesale, retail, and licensing. The company’s wholesale segment represented approximately 46% of its fiscal 2015 revenue, while its retail segment represented 52% of its total revenue. Its licensing revenue accounted for only 2% of its total revenue.

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.69% of its holdings in Ralph Lauren.

In this series. . .

The current series is an earnings preview for Ralph Lauren’s fiscal 4Q16 results. In the series, we’ll review the company’s performance in fiscal 3Q16, discuss its guidance for fiscal 2016, present Wall Street’s view on the company, and look at the company’s stock market performance and current valuations.

We’ll also compare Ralph Lauren’s performance to other fashion and apparel peers such as VFC, PVH, Hanesbrands (HBI), Coach (COH), and Michael Kors (KORS).


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