Ralph Lauren's earnings beat estimates but company is cautious on wholesale channel for the rest of fiscal 2024

Ralph Lauren Corp.'s stock (RL) rose about 5% before surrendering those gains to trade down slightly early Wednesday, after the luxury apparel company posted a profit and revenue beat for its fiscal second quarter. The company had net income of $146.9 million, or $2.19 a share, for the quarter to Sept. 30, after income of $150.5 million, or $2.18 a share, in the year-earlier period. Revenue rose to $1.633 billion from $1.579 billion. The FactSet consensus was for EPS of $1.93 and revenue of $1.606 billion. The company said its efforts to resonate with younger consumers brought it 1.3 million new customers to its direct-to-consumer channel and it reached 55.9 million social-media followers globally. The company still expects fiscal 204 revenue to grow in the low-single digits on a constant currency basis, or about 1% to 2%. "This outlook reflects slightly increased caution around the wholesale channel. Based on current exchange rates, foreign currency is now expected to negatively impact revenue growth by approximately 50 basis points in Fiscal 2024," said the company. It expects third-quarter revenue to be up 1% to 2% in constant currency. The stock has gained 6.8% in the year to date, while the S&P 500 has gained 14%.

-Ciara Linnane

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11-08-23 0815ET

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