Fashion brand Ralph Lauren (NYSE:RL) will be reporting earnings tomorrow before market open. Here’s what you need to know.
Ralph Lauren beat analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $2.14 billion, up 10.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ adjusted operating income 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 4.9% year on year to $1.65 billion, improving from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.04 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
Looking at Ralph Lauren’s peers in the apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ThredUp delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4.4%, and Figs reported revenues up 4.7%, topping estimates by 4.8%. ThredUp traded up 48.1% following the results while Figs was down 1.7%.
Read our full analysis of ThredUp’s results here and Figs’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 13.7% on average over the last month. Ralph Lauren is up 33.5% during the same time and is heading into earnings with an average analyst price target of $275.78 (compared to the current share price of $279.75).
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