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Last Update: 09-Nov-11 11:03 ET
Polo Ralph Lauren Tops Second Quarter Expectations; Raises Outlook
Polo Ralph Lauren (RL $149.24 -9.81) reported second quarter earnings of $2.46 per share, $0.23 better than the Capital IQ Consensus Estimate of $2.23.
Revenues rose 24.3% year/year to $1.91 billion versus the $1.84 billion consensus.
RL raised fiscal year 2012 revenue growth guidance to high teens to low 20% rate from mid to high teens; company also raises op. margin guidance. In Q3, the co expects consolidated revenues to increase at a low-teens rate (consensus +13.8%).
Wholesale revs are expected to grow at a mid-single digit rate in the third quarter and retail sales are projected to increase by a high-teens rate. The co expects the operating margin from continuing operations for Q3 to be ~300 basis points below that in the comparable prior year period, primarily due to cost of goods inflation, channel mix and continued investment in business expansion.
Due to the stronger-than-expected Q2 performance, the co now expects consolidated revenues for FY12 to increase at a high-teens-to-low 20% rate vs. the +19.3% consensus, which compares to a prior expectation of mid-to-high teens growth. The co has also raised its operating margin outlook for Fiscal 2012. The full year operating margin from continuing operations is now estimated to be down 50 bps YoY, which compares to a prior expectation of a 50-100 basis point decline and reflects the anticipated impact of cost of goods inflation and continued investment in strategic growth initiatives.
Revenues rose 24.3% year/year to $1.91 billion versus the $1.84 billion consensus.
RL raised fiscal year 2012 revenue growth guidance to high teens to low 20% rate from mid to high teens; company also raises op. margin guidance. In Q3, the co expects consolidated revenues to increase at a low-teens rate (consensus +13.8%).
Wholesale revs are expected to grow at a mid-single digit rate in the third quarter and retail sales are projected to increase by a high-teens rate. The co expects the operating margin from continuing operations for Q3 to be ~300 basis points below that in the comparable prior year period, primarily due to cost of goods inflation, channel mix and continued investment in business expansion.
Due to the stronger-than-expected Q2 performance, the co now expects consolidated revenues for FY12 to increase at a high-teens-to-low 20% rate vs. the +19.3% consensus, which compares to a prior expectation of mid-to-high teens growth. The co has also raised its operating margin outlook for Fiscal 2012. The full year operating margin from continuing operations is now estimated to be down 50 bps YoY, which compares to a prior expectation of a 50-100 basis point decline and reflects the anticipated impact of cost of goods inflation and continued investment in strategic growth initiatives.
