Polo Ralph Lauren (RL) is expected to report Q3 earnings before market open Wednesday, February 4, with a conference call scheduled for 9:00 am ET.
Guidance
Analysts are looking for a profit of 86c on revenue of $1.25B. The consensus range is 75c-96c for EPS, and revenue of $1.19B-$1.29B, according to First Call. In November, the company forecast FY09 EPS $4.00-$4.10 vs. First Call consensus of $4.02.
Analyst Views
Goldman Sachs analyst Adrienne Shapira says that as consumers continue to cut back on discretionary spending and hunt for bargains, Ralph Lauren's results are likely to weaken. Shapira notes that companies like Nordstrom (JWN) and Tiffany (TIF) have been hurt by the slowdown and expects Ralph Lauren to be next. The company's retail stores have also come under pressure as department stores discount aggressively to bring in shoppers. Shapira expects signs of weakened fundamentals across wholesale, retail, outlet and its European business.
At the annual conference for the National Retail Federation, COO Roger Farah agreed that "these are tough times for all of us...but you nevertheless have to plan." Farah insisted that regardless what happens with the economy the brand "we will do nothing to compromise our brand." :th
