Premium lifestyle products designer Ralph Lauren (NYSE:RL) announced its Fiscal second quarter results today. Adjusted earnings per share came in at $2.10 compared to $2.18 per share in the same period last year. This was above analysts’ estimates of $1.93 per share.
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The company’s net sales increased by 3% year-over-year to $1.6 billion, in line with consensus estimates. Furthermore, direct-to-consumer comparable store sales went up by 6% globally in the second quarter.
Looking forward, in FY24, management now expects revenues to increase year-over-year by “low-single digits” on a constant currency basis, around 1% to 2%. The company continues to anticipate its operating margin to expand by around 30 to 50 basis points on a constant currency basis to 12.3% to 12.5%, “driven by gross margin expansion.”
In the third quarter, Ralph Lauren has projected revenues to be up by around 1% to 2% year-over-year on a constant currency basis while operating margin is projected to be flat in “constant currency, with about 10 basis points of foreign currency benefit.”
Is RL Stock a Good Buy?
Analysts are cautiously optimistic about RL stock with a Moderate Buy consensus rating based on nine Buys, four Holds and one Sell. The average RL price target of $136.86 implies an upside potential of 21.3% at current levels.
