Ralph Lauren (NYSE:RL) posted stronger-than-expected results for its fourth fiscal quarter.
As a result, the RL stock trades over 5% higher on Thursday.
Ralph Lauren reported an FQ4 EPS of $0.90 to easily top the expected $0.60. Revenue for the quarter came in at $1.54 billion versus the consensus estimate of $1.47B. The drop in North America and Europe revenues was offset by Asia sales surging 13% to $390 million.
Comparable sales rose 6%, ahead of the +4.8% expected, as Asia comparable sales surged as much as 20%. On a more negative note, inventory rose by 10%, more than the 8.6% expected.
On the guidance front, the company said:
“For the first quarter, the Company expects revenues to be flat to up slightly to last year on a constant currency basis…For Fiscal 2024, the Company expects revenues to increase approximately low-single digits to last year on a constant currency basis.”
Goldman Sachs analysts said the FQ4 upside was “solid.”
“We are encouraged by the solid sales-driven F4Q result, with particular strength in International regions, though we note our conversations ahead of the print suggested a 4Q beat was expected. That said, we note that RL’s revenue outlook for the year is modestly below prior FactSet consensus growth rates for both 1Q and the FY on a reported and ex-FX basis.”