Ralph Lauren is expected to post strong profit growth year-over-year when it reports its financial results for the first quarter fiscal 2024 before the market opens on Thursday, August 10.
For the quarter, analysts expect the luxury lifestyle brand to report earnings per share (EPS) of $2.15, according to Zacks Consensus Estimate.
This would be a 14.4% increase from EPS of $1.88 in 1Q 2022.
Revenue, however, is expected to come in slightly lower than the year-ago quarter’s $1.49 billion at $1.48 billion.
When handing down its 4Q 2023 quarterly results in late May, Ralph Lauren projected that its 1Q revenue would be flat to slightly up on the year-ago quarter on a constant currency basis.
On a reported basis, including about 150 basis points or negative foreign currency impact, revenue was estimated to be down slightly over the prior year, which is in line with the Street forecast.
The company also forecast operating margin expansion of 30 to 50 basis points in constant currency, led by stronger gross margins which are in turn expected to be driven by lower freight costs and continued average unit revenue (AUR) growth partially offset by increased product costs.
Ralph Lauren shares traded hands at US$127.64 on Wednesday afternoon. The stock is up 16.9% in the year to date.
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