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UPDATE: Ralph Lauren Posts Upbeat Q4 Earnings, Issues Cautious FY15 Margin Outlook

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Ralph Lauren (NYSE: RL) reported better-than-expected fiscal fourth-quarter earnings. However, the company issued a weak forecast for FY15 operating margin.

Ralph Lauren expects FY15 operating margin to be 75-125 basis points below the earlier year's level. It also projects FY15 revenue to increase by 3% to 5%.

Ralph Lauren's quarterly earnings rose to $153 million, or $1.68 per share, versus $127 million, or $1.37 per share, in the year-ago period.

Its revenue surged 14% to $1.9 billion. However, analysts were expecting earnings of $1.63 per share on revenue of $1.827 billion.

Ralph Lauren, Chairman and Chief Executive Officer said, Fiscal 2014 was another year of record sales and profits for us."

The executive continued, "It was also a year of important achievements, including the establishment of a new global leadership structure, creating greater clarity around our global store development efforts and innovating with new products, particularly in accessories and with Polo for women. The creativity, passion and diligence that defines all that we do is incredibly invigorating. I am confident we are focused on the right initiatives and that we have the right team in place to realize our goals.”

Ralph Lauren's wholesale operating income climbed 25% to $296 million in the quarter, while retail operating income came in at $51 million in the quarter. Its licensing operating income came in at $35 million in the quarter.

Ralph Lauren shares dropped 6.67% to $141.85 in pre-market trading.

Posted-In: profitEarnings News Guidance


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