Ralph Lauren's stock declines despite beating earnings expectations. CEO highlights brand strength and growth engines driving success. Future outlook remains positive.
Ralph Lauren (ticker: RL) saw a decline in its shares on Thursday following the release of its fiscal first-quarter results. Although the premium apparel company posted impressive adjusted earnings, the outlook provided was underwhelming.
In the first quarter, Ralph Lauren reported adjusted earnings of $2.34 per share, surpassing last year's $1.88 and exceeding Wall Street's expectations of $2.14. Sales for the quarter reached $1.497 billion, higher than both the previous year's figures and the $1.483 billion projected by analysts.
Ralph Lauren's President and CEO, Patrice Louvet, emphasized the strength and relevance of their iconic brand, expressing satisfaction with the company's performance. Louvet also highlighted the diversified growth engines that drive their success. The positive first-quarter results reaffirm Ralph Lauren's full-year outlook.
Looking ahead to fiscal 2024, Ralph Lauren management maintains its anticipation of low-single digit revenue growth compared to the previous year's figures, on a constant currency basis. For the upcoming second quarter, the company expects revenue to remain relatively stable or experience a slight increase in constant currency.
Despite the positive earnings results, Ralph Lauren's stock experienced a 3.8% decline in premarket trading, closing at $123.60. Nevertheless, the company's shares have shown a 22% gain year-to-date.
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