Fashion brand Ralph Lauren (NYSE:RL) will be reporting earnings tomorrow before market open. Here’s what to expect.
Ralph Lauren beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.51 billion, up 1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings 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 2.9% year on year to $1.68 billion, in line with the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.42 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 6 upward revisions over the last 30 days (we track 14 analysts). Ralph Lauren has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.
Looking at Ralph Lauren’s peers in the apparel, accessories and luxury goods segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp’s revenues decreased 5.6% year on year, beating analysts’ expectations by 1.6%, and Kontoor Brands reported revenues up 2.4%, topping estimates by 1%. VF Corp traded up 27% following the results while Kontoor Brands was also up 6.7%.
Read our full analysis of VF Corp’s results here and Kontoor Brands’s results here.
There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up 3.3% on average over the last month. Ralph Lauren is up 5.4% during the same time and is heading into earnings with an average analyst price target of $205.06 (compared to the current share price of $205).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
