Trade with Eva : Analytics in action: Ralph Lauren (RL) reported earnings on Thur 5 Nov 2015 (before open)

Thursday, November 5, 2015

** charts before earnings **

** charts after earnings **

Ralph Lauren beats by $0.39, reports revs in-line; guides Q3 revs in-line; guides FY16 revs in-line :

Reports Q2 (Sep) earnings of $2.13 per share, $0.39 better than the Capital IQ Consensus of $1.74; revenues fell 1.2% year/year to $1.97 bln vs the $1.95 bln Capital IQ Consensus; constant FX rev +4% vs. +3-5% guidance.
Co issues in-line guidance for Q3, sees Q3 revs +0-2% to ~$2.03-2.07 bln vs. $2.04 bln Capital IQ Consensus Estimate.
- Based on current exchange rates, foreign currency will have an approximate 250 basis point negative impact on revenue growth. Operating margin for the third quarter of Fiscal 2016 is expected to be ~200-250 basis points below the comparable prior year period, primarily due to negative foreign currency effects and infrastructure investments.
Co issues in-line guidance for FY16, sees FY16 revs of flat YoY from $7.62 bln vs. $7.6 bln Capital IQ Consensus Estimate.
- Co is maintaining its Fiscal 2016 outlook. The company expects consolidated net revenues for Fiscal 2016 to be ~flat on a reported basis and increase by 3-5% in constant currency (from mid single digit growth). Based on current exchange rates, foreign currency will have an ~400 basis point negative impact on Fiscal 2016 revenue growth. Operating margin for Fiscal 2016 is still expected to be 180-230 basis points below the prior year's level due to negative foreign currency effects.