Ralph Lauren (NYSE:RL) Posts Earnings Results, Beats Estimates By $0.27 EPS

Key Points

• Ralph Lauren reported a quarterly earnings per share (EPS) of $3.77, surpassing analyst estimates of $3.50 by $0.27, with a revenue of $1.72 billion against estimates of $1.65 billion.
• The company increased its quarterly dividend to $0.9125 per share, up from $0.83, resulting in an annualized dividend yield of 1.3%.
• Ralph Lauren's board authorized a stock repurchase plan valued at $1.50 billion, allowing the company to buy back up to 8.8% of its shares, signaling management's belief that the stock is undervalued.

Ralph Lauren (NYSE:RL - Get Free Report) released its quarterly earnings data on Thursday. The textile maker reported $3.77 EPS for the quarter, topping analysts' consensus estimates of $3.50 by $0.27, RTT News reports. The company had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.65 billion. Ralph Lauren had a net margin of 10.91% and a return on equity of 33.72%. The firm's revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period last year, the firm earned $2.70 EPS.

Ralph Lauren Trading Up 1.8%

Shares of NYSE:RL traded up $5.24 during trading on Friday, hitting $288.58. 1,068,802 shares of the company's stock were exchanged, compared to its average volume of 689,554. Ralph Lauren has a 1-year low of $156.69 and a 1-year high of $306.34. The firm has a 50-day moving average price of $282.43 and a two-hundred day moving average price of $256.51. The company has a current ratio of 1.84, a quick ratio of 1.33 and a debt-to-equity ratio of 0.58. The firm has a market cap of $17.41 billion, a P/E ratio of 23.05, a PEG ratio of 2.11 and a beta of 1.53.

Ralph Lauren Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Shareholders of record on Friday, June 27th were given a $0.9125 dividend. This represents a $3.65 annualized dividend and a yield of 1.3%. The ex-dividend date was Friday, June 27th. This is a boost from Ralph Lauren's previous quarterly dividend of $0.83. Ralph Lauren's dividend payout ratio is 31.44%.

Ralph Lauren announced that its board has authorized a stock repurchase plan on Thursday, May 22nd that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the textile maker to reacquire up to 8.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Ralph Lauren

Several institutional investors have recently modified their holdings of RL. Woodline Partners LP grew its position in shares of Ralph Lauren by 39.5% during the 1st quarter. Woodline Partners LP now owns 3,369 shares of the textile maker's stock worth $744,000 after buying an additional 954 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Ralph Lauren by 5.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,432 shares of the textile maker's stock valued at $758,000 after purchasing an additional 174 shares during the period. Focus Partners Wealth grew its holdings in Ralph Lauren by 29.5% during the first quarter. Focus Partners Wealth now owns 3,812 shares of the textile maker's stock valued at $841,000 after purchasing an additional 869 shares during the period. Finally, Empowered Funds LLC grew its holdings in Ralph Lauren by 0.9% during the first quarter. Empowered Funds LLC now owns 12,334 shares of the textile maker's stock valued at $2,723,000 after purchasing an additional 114 shares during the period. Institutional investors and hedge funds own 67.91% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Evercore ISI raised their price objective on shares of Ralph Lauren from $320.00 to $335.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Cfra Research downgraded shares of Ralph Lauren from a "hold" rating to a "moderate sell" rating in a report on Tuesday, May 20th. Telsey Advisory Group lifted their price target on shares of Ralph Lauren from $315.00 to $335.00 and gave the company an "outperform" rating in a report on Monday, August 4th. JPMorgan Chase & Co. lifted their price target on shares of Ralph Lauren from $355.00 to $406.00 and gave the company an "overweight" rating in a report on Monday, July 28th. Finally, Needham & Company LLC lifted their price target on shares of Ralph Lauren from $310.00 to $335.00 and gave the company a "buy" rating in a report on Tuesday. One analyst has rated the stock with a sell rating, three have given a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $306.41.

Ralph Lauren Company Profile

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances.

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