Ralph Lauren (RL) Tops Q2 EPS by 14c; raises guidance

Ralph Lauren (NYSE: RL) reported Q2 EPS of $2.54, $0.14 better than the analyst estimate of $2.40. Revenue for the quarter came in at $1.7 billion versus the consensus estimate of $1.68 billion.

GUIDANCE

For Fiscal 2025, the Company now expects constant currency revenues to increase in a range of approximately 3% to 4%. Based on current exchange rates, foreign currency is expected to negatively impact revenues by approximately 40 to 60 basis points in Fiscal 2025.

The Company now expects operating margin for Fiscal 2025 to expand approximately 110 to 130 basis points in constant currency, driven by gross margin expansion and operating expense leverage. Gross margin is expected to increase approximately 80 to 120 basis points in constant currency. Foreign currency is expected to negatively impact gross and operating margins by approximately 20 basis points.

For the third quarter, the Company expects constant currency revenues to grow approximately 3% to 4%. Foreign currency is expected to benefit revenue growth by approximately 10 to 50 basis points.

Operating margin for the third quarter is expected to expand approximately 100 to 140 basis points in constant currency, driven by gross margin expansion. Foreign currency is expected to have a roughly neutral impact on gross and operating margins in the third quarter.

The Company\'s full year Fiscal 2025 tax rate is now expected to be in the range of approximately 22% to 23%, increasing from 19% in the prior year, following discrete tax benefits recognized in the prior year period. The third quarter tax rate is expected to be approximately 22%.

The Company expects capital expenditures for Fiscal 2025 of approximately $250 million to $300 million.

For earnings history and earnings-related data on Ralph Lauren (RL) click here.

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