Fashion brand Ralph Lauren (NYSE:RL) will be reporting results tomorrow before market open. Here's what to look for.
Ralph Lauren met analysts' revenue expectations last quarter, reporting revenues of $1.57 billion, up 1.8% year on year. It was an ok quarter for the company, with a narrow beat of analysts' constant currency revenue 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 be flat year on year at $1.49 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $2.47 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ralph Lauren has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.8% on average.
Looking at Ralph Lauren's peers in the apparel, accessories and luxury goods segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kontoor Brands's revenues decreased 1.5% year on year, beating analysts' expectations by 2.3%, and Levi's reported revenues up 7.8%, in line with consensus estimates. Kontoor Brands traded down 1.6% following the results while Levi's was also down 15.7%.
Read our full analysis of Kontoor Brands's results here and Levi's results here.
Investors in the apparel, accessories and luxury goods segment have had steady hands going into earnings, with share prices flat over the last month. Ralph Lauren is down 9.8% during the same time and is heading into earnings with an average analyst price target of $190.5 (compared to the current share price of $159.8).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.