Ralph Lauren Earnings: What To Look For From RL

Fashion brand Ralph Lauren (NYSE:RL) will be reporting results tomorrow before market open. Here's what to expect.

Ralph Lauren beat analysts' revenue expectations by 3.4% last quarter, reporting revenues of $1.93 billion, up 5.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' constant currency revenue estimates and a solid 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 1.6% year on year to $1.57 billion, in line with the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.67 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 3.3% on average.

Looking at Ralph Lauren's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Columbia Sportswear's revenues decreased 6.2% year on year, beating analysts' expectations by 3.6%, and Figs reported flat revenue, topping estimates by 1.6%. Columbia Sportswear traded up 1.3% following the results while Figs was down 4.4%.

Read our full analysis of Columbia Sportswear's results here and Figs's results here.

There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up 3.4% on average over the last month. Ralph Lauren's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $186.9 (compared to the current share price of $169.27).

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