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Ralph Lauren reports rise in Q4 earnings at 2.48 dollars

Ralph Lauren Corporation said that it reported earnings per diluted share of 2.48 dollars on a reported basis and 0.89 dollar on an adjusted basis for the fourth quarter of fiscal 2017 compared to earnings per diluted share of 0.49 dollar on a reported basis and 0.88 dollar on an adjusted basis, for the fourth quarter of fiscal 2016. For Fiscal 2017, earnings per diluted share were 1.20 dollars on a reported basis and 5.71 dollars on an adjusted basis compared to 4.62 dollars on a reported basis and 6.36 dollars on an adjusted basis, for the full year of fiscal 2016.

“The retail landscape today is more dynamic than ever, but within this environment, our brand continues to be one of the most recognized and beloved all over the world. I am very excited to partner with Patrice Louvet, who will join as our CEO in July, as we continue our evolution,” said Ralph Lauren, Executive Chairman and Chief Creative Officer in a media release.

Q4 revenues down 16 percent

In the fourth quarter, reported revenue decreased 16 percent to 1.6 billion dollars; excluding the impact of foreign currency and on a 13-week to 13-week basis, revenue was down 12 percent to last year. The company said, foreign currency pressured the fourth quarter revenue growth by approximately 100 basis points.

International revenue in the fourth quarter declined 9 percent while North America revenue was down 21 percent to last year. Excluding the impact of foreign currency and on a 13-week to 13-week basis, international revenue was down 2 percent to last year, with negative currency impact of 300 basis points of the difference.

Wholesale revenue decreased 17 percent in the quarter to 777 million dollars; on a 13-week to 13-week basis in constant currency, wholesale revenue was down 15 percent to last year. The company said, decline was primarily driven by North America as shipments were strategically reduced to increase quality of sales, better align with demand and reduce excess inventory.

Retail revenue decreased 16 percent to 745 million dollars; on a 13-week to 13-week basis in constant currency, retail revenue was down 9 percent to last year. Lower retail sales, Ralph Lauren said, were driven by a decline in comparable store sales that was negatively impacted by challenging traffic and average transaction size trends, partially driven by its initiatives to improve quality of sales. On a 13-week to 13-week constant currency basis, comparable store sales decreased 11percent negatively impacted by calendar shifts related to both Christmas and Easter holidays by about three percentage points; excluding this impact, comparable store sales would have decreased 8 percent.

Licensing revenue increased 7 percent on a reported basis to 43 million dollars.

FY17 revenues declined 10 percent

For fiscal 2017, revenue decreased 10 percent to 6.7 billion dollars. Wholesale revenue for the year decreased 15 percent to 2.8 billion dollars compared to the prior year period, primarily due to a decline in sales in North America.

For Fiscal 2017, retail revenue for the year decreased 6 percent on a reported basis to 3.7 billion dollars compared to the prior year period. On a 52-week to 52-week constant currency basis, consolidated comparable store sales decreased 7 percent.

Licensing revenue of 173 million dollars for the period was 1 percent below fiscal 2016 on a reported basis.

Ralhp Lauren posts Q4 net loss of 204 mn dollars

On a reported basis, net loss in the fourth quarter was 204 million dollars or 2.48 dollars per share. On an adjusted basis, net income was 74 million dollars or 0.89 dollar per diluted share, excluding restructuring and other charges. This compared to net income of 41 million dollars or 0.49 dollar per diluted share on a reported basis, and 74 million dollars or 0.88 dollar per diluted share on an adjusted basis, for the fourth quarter of fiscal 2016.

In fiscal 2017, on a reported basis, net loss was 99 million dollars or 1.20 dollars per share. On an adjusted basis, net income was 477 million dollars or 5.71 dollars per diluted share, excluding restructuring and other charges. This compared to net income of 396 million dollars or 4.62 dollars per diluted share on a reported basis, and 546 million dollars or 6.36 dollars per diluted share, for fiscal 2016.

FY18 revenues expected to decline 8-9 percent

For fiscal 2018, net revenue is expected to decrease 8-9 percent, excluding the impact of foreign currency. Based on current exchange rates, foreign currency is expected to have approximately 150 basis points of negative impact on revenue growth in fiscal 2018. Operating margin is expected to be 9-10.5 percent, excluding the impact of foreign currency. Based on current exchange rates, foreign currency is expected to pressure operating margin for fiscal 2018 by 50-75 basis points.

In the first quarter of fiscal 2018, the company expects net revenue to be down low double-digits, excluding the impact of foreign currency. Based on current exchange rates, foreign currency is expected to have approximately 225 basis points of negative impact on revenue growth in the first quarter. Operating margin for the quarter is expected to be about 9.5-10 percent, excluding foreign currency impacts. Foreign currency is estimated to pressure operating margin by approximately 75 basis points.

Picture:Ralph Lauren website