Apparel maker and retailer Ralph Lauren Corp (NYSE:RL) early Thursday posted better than expected fiscal second quarter earnings results and stood by its tepid outlook.
The New York-based company reported fiscal Q2 adjusted EPS of $1.90, a full 19 cents better than Wall Street’s estimate of $1.71. Revenue fell 7.6% from last year to $1.82 billion, narrowly beating analysts’ view of $1.81 billion.
International net revenue rose 2% in the latest period, while North American sales plunged 12%. Wholesale revenue fell 10% from last year, and retail revenue fell 5%.
Consolidated comparable store sales (comps) fell 8% year-over-year, but the company used fewer discounts and was able to lower inventory levels by 15%.
Looking ahead, RL maintained its previously-announced full-year fiscal 2017 revenue guidance for a low-double digit sales decrease. It also expects 2017 operating margins around 10%, with fiscal Q3 also down in the low-double digits to down low-teens on a reported basis, while analysts are looking for an 11.8% fall.
The company commented via press release:
“We are changing with the consumer, as we demonstrated in September with our first-ever ‘see-now-buy-now’ runway show at our flagship store on Madison Avenue,” said Ralph Lauren, Executive Chairman and Chief Creative Officer. “I am confident that this industry leading endeavor in combination with our other elements of the Way Forward plan are strengthening our brand to support future profitable growth.”
Ralph Lauren shares in premarket trading Thursday. Prior to today’s report, RL had fallen 8.37% year-to-date.