Ralph Lauren’s Q1 Earnings Beat, but Tepid Sales Forecast Sends Shares Lower (RL)

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Apparel maker Ralph Lauren Corp. ( RL ) on Wednesday posted fiscal first quarter earnings that beat Wall Street's estimates, but its weak sales outlook spooked investors and pushed its shares lower in premarket trading.

The New York-based company reported fiscal first quarter net income of $193 million, or $2.03 per share, compared with $184 million, or $1.90 per share, in the year-ago period.

Revenue rose 4% from last year to $1.6 billion.


On average, Wall Street analysts expected a much smaller profit of $1.78 per share, on slightly lower revenue of $1.58 billion.

Looking ahead, RL forecast fiscal second quarter revenue to fall by a mid-single-digit percentage, as the company expects negative effects from the weaker dollar and sluggish growth in China.

Ralph Lauren shares fell $8.52, or -5.6%, in premarket trading Wednesday.

The Bottom Line
Shares of Ralph Lauren ( RL ) have a 1.05% dividend yield, based on last night's closing stock price of $153.03. The stock has technical support in the $137-$140 price area. If the shares can firm up, we see overhead resistance around the $160-$161 price levels.

Ralph Lauren Corp. ( RL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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