Ralph Lauren’s 4Q18 earnings preview
Ralph Lauren (RL) is scheduled to report its 4Q18 results on May 23.
Wall Street projects a 6.7% YoY (year-over-year) decline in Ralph Lauren’s EPS (earnings per share) due to a 5.2% drop in its total sales. The EPS is expected to be ~$0.83 on total sales of $1.48 billion for the quarter.
Ralph Lauren has outperformed analysts’ top and bottom-line expectations for the past eight consecutive quarters. Read Part 2 and Part 3 in this series to learn more about Ralph Lauren’s recent financial performance and expectations for the coming quarter.
Stock market performance
Driven by a consistently strong performance, Ralph Lauren stock has surged more than 30% in the past year. Apparel players, PVH (PVH), VF (VFC), and Michael Kors (KORS) have also delivered strong returns. In fact, the S&P 500 Apparel and Accessories Index has done reasonably well in the past year. The S&P 500 Apparel and Accessories Index has outperformed the S&P 500 Index. Read Part 4 to learn more.
Ralph Lauren stock trades in-line with its historical PE (price-to-earnings) ratio. However, the company continues to be expensive compared to most of its peers. In Part 5, we’ll discuss Ralph Lauren’s current valuations.
Wall Street’s view
Wall Street’s stance on Ralph Lauren has become more favorable since its third-quarter results in February. Cowen and Company upgraded Ralph Lauren, while Credit Suisse gave a “buy” rating in March.
The iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF) invests 1.8% of its holdings in Ralph Lauren.