EmailPolo Ralph Lauren (RL $119.41 -9.98) reported fourth quarter earnings of $0.74 per share, $0.05 worse than the Thomson Reuters consensus of $0.79.
Revenues rose 7.2% year/year to $1.38 billion versus the $1.39 billion
consensus.
Gross profit margin was 56.8%, 220 bps below the prior year level. The decline
in gross profit margin reflects the impact of cost of goods inflation that was
partially offset by improved retail segment margins and overall channel mix.
Outlook: In the first quarter of 2012, the co expects consolidated
revenues to increase in the mid 20% range (cons: +12.7%). Wholesale revenues are
expected to grow at a low 20% rate in the first quarter and retail revenues are
expected to grow slightly faster, including comparable store sales that are
projected to increase by a low double-digit rate. The co expects the operating
margin from continuing operations for the first quarter of fiscal 2012 to be
equivalent to that in the comparable prior year period.
The company currently expects consolidated revenues for FY12 to increase by a
mid teens percentage (cons: +9.8%), with retail revenues growing slightly faster
than wholesale revenues. Based on the anticipated impact of cost of goods
inflation and increased investment in strategic growth initiatives, in addition
to business disruption in Japan, the co expects the operating margin from
continuing operations for fiscal 2012 to be 100-150 bps below the prior year.
The fiscal year 2012 tax rate is estimated at 33%. Capital expenditures are
planned at ~$325 million in Fiscal 2012.
