Ralph Lauren (NYSE:RL) shares are plunging in the premarket session today after the luxury lifestyle products provider announced its fourth-quarter results and appointed a new CFO.
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RL’s Promising Quarterly Performance
During the quarter, RL’s revenue inched up by 2% year-over-year to $1.57 billion, in line with expectations. Furthermore, its EPS of $1.71 outpaced expectations by $0.04. In comparison, the company’s EPS stood at $0.90 in the year-ago quarter.
The retailer’s global direct-to-consumer comparable store sales expanded by 6%, driven by strength in average unit retail (AUR) and full-price retail performance. Importantly, the company added over five million new customers in its DTC channels in Q4. While revenue in the North America and Europe geographies improved by 2%, the company continued to see robust traction in Asia with high-single-digit growth in China. Furthermore, RL continues to expand its retail presence, opening stores in key cities such as Amsterdam, Singapore, Paris, and Dubai over the past year.
Additionally, a combination of margin expansion and lower tax rates helped Ralph Lauren improve its adjusted net income to $112 million from $61 million a year ago. Buoyed by this performance, the company increased its quarterly dividend by 10% to $0.825 per share. The RL dividend is payable on July 12 to investors of record on June 28.
Ralph Lauren’s Outlook Fails to Impress
For Fiscal year 2025, RL anticipates revenue growth in the low-single digits. For the upcoming quarter, the retailer foresees a slight improvement in its top line. Separately, Ralph Lauren appointed company veteran Justin Picicci as its CFO. The current CFO and COO, Jane Nielsen, will continue to serve as COO.
What Is the Stock Price Target for Ralph Lauren?
Today’s price decline further adds to the nearly 12% drop in Ralph Lauren’s share price over the past three months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average RL price target of $201.83. However, analysts’ views on the company could see changes following today’s earnings report.
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