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Things to Know Ahead of Ralph Lauren's (RL) Q3 Earnings
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Ralph Lauren Corporation (RL - Free Report) is likely to register top- and bottom-line declines when it reports third-quarter fiscal 2021 numbers on Feb 4, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1.46 billion, which indicates a decline of 16.8% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line is pegged at $1.62 per share, which suggests a decline of 43.4% from the year-ago quarter’s reported figure. However, the consensus estimate has increased 4.5% in the past seven days.
The apparel and lifestyle products company’s bottom line beat the Zacks Consensus Estimate by 53.2%, in the last reported quarter.
The COVID-19 pandemic has caused disruptions in Ralph Lauren’s supply operations. This is likely to have dented revenues across regions like North America, Europe and Asia during the third quarter. On its last earnings call, management expected pandemic-led adversities to continue in the fiscal third quarter. Also, it stated that it has been witnessing soft store traffic due to the pandemic-related headwinds, which are likely to have weighed on fiscal third-quarter revenues.
Also, any adverse movement in currency exchange rates as well as a rise in operating expenses is expected to have been a headwind in the quarter under review.
Nevertheless, Ralph Lauren has been benefiting from its business strategies and accelerated digital endeavors to support the shift in shopping preference amid the pandemic. Its omni-channel services, including digital clienteling, Buy Online Ship from Store, curbside pickup, contactless delivery and mobile checkout options, are anticipated to have aided sales in the fiscal third quarter. Also, increased focus on home and loungewear in sync with consumers’ changing preferences as well as the expansion in connected retail offerings has been driving digital sales.
Further, improved margins and reduced costs are likely to have cushioned the bottom line. The company has been witnessing positive regional and channel mix shifts, stemming from COVID-19 along with enhanced AUR in all regions, which have been boosting the gross margin.
On the last reported quarter’s earnings call, management expected gross margin expansion to continue in the second half of fiscal 2021 along with a marginal decline in expenses. This projection indicates that the company is likely to have witnessed favorable gross margin and an expense decline in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ralph Lauren this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ralph Lauren sports a Zacks Rank #1 and has an Earnings ESP of -8.67%.
Stocks Poised to Beat Earnings Estimates
Here are some more companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
YETI Holdings, Inc. (YETI - Free Report) currently has an Earnings ESP of +6.91% and a Zacks Rank #2.
Vista Outdoor Inc. (VSTO - Free Report) has an Earnings ESP of +5.39% and a Zacks Rank #2 at present.
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Things to Know Ahead of Ralph Lauren's (RL) Q3 Earnings
Ralph Lauren Corporation (RL - Free Report) is likely to register top- and bottom-line declines when it reports third-quarter fiscal 2021 numbers on Feb 4, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $1.46 billion, which indicates a decline of 16.8% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line is pegged at $1.62 per share, which suggests a decline of 43.4% from the year-ago quarter’s reported figure. However, the consensus estimate has increased 4.5% in the past seven days.
The apparel and lifestyle products company’s bottom line beat the Zacks Consensus Estimate by 53.2%, in the last reported quarter.
Ralph Lauren Corporation Price and EPS Surprise
Ralph Lauren Corporation price-eps-surprise | Ralph Lauren Corporation Quote
Aspects to have Impacted Q3 Metrics
The COVID-19 pandemic has caused disruptions in Ralph Lauren’s supply operations. This is likely to have dented revenues across regions like North America, Europe and Asia during the third quarter. On its last earnings call, management expected pandemic-led adversities to continue in the fiscal third quarter. Also, it stated that it has been witnessing soft store traffic due to the pandemic-related headwinds, which are likely to have weighed on fiscal third-quarter revenues.
Also, any adverse movement in currency exchange rates as well as a rise in operating expenses is expected to have been a headwind in the quarter under review.
Nevertheless, Ralph Lauren has been benefiting from its business strategies and accelerated digital endeavors to support the shift in shopping preference amid the pandemic. Its omni-channel services, including digital clienteling, Buy Online Ship from Store, curbside pickup, contactless delivery and mobile checkout options, are anticipated to have aided sales in the fiscal third quarter. Also, increased focus on home and loungewear in sync with consumers’ changing preferences as well as the expansion in connected retail offerings has been driving digital sales.
Further, improved margins and reduced costs are likely to have cushioned the bottom line. The company has been witnessing positive regional and channel mix shifts, stemming from COVID-19 along with enhanced AUR in all regions, which have been boosting the gross margin.
On the last reported quarter’s earnings call, management expected gross margin expansion to continue in the second half of fiscal 2021 along with a marginal decline in expenses. This projection indicates that the company is likely to have witnessed favorable gross margin and an expense decline in the fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ralph Lauren this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ralph Lauren sports a Zacks Rank #1 and has an Earnings ESP of -8.67%.
Stocks Poised to Beat Earnings Estimates
Here are some more companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Steven Madden, Ltd. (SHOO - Free Report) currently has an Earnings ESP of +1.61% and it flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
YETI Holdings, Inc. (YETI - Free Report) currently has an Earnings ESP of +6.91% and a Zacks Rank #2.
Vista Outdoor Inc. (VSTO - Free Report) has an Earnings ESP of +5.39% and a Zacks Rank #2 at present.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>