Polo Ralph Lauren Beats Estimates, Lowers Guidance on Consumer Concerns

Luxury retailer Polo Ralph Lauren Corp. saw its net income fall 15.8% despite an 11.3% rise in revenue in its latest quarter (F2Q08). Net income was $115.3 million, good for EPS of $1.09 a share, versus EPS of $1.28 a year earlier. Revenue increased to $1.3 billion, up from $1.17 billion a year ago. Consensus estimates were for EPS of $1.02 on revenue of $1.27 billion. The company lowered its full year EPS forecast to a high of $3.60 at most, from a previous estimate of EPS of as much as $3.74. Consensus analyst FY EPS estimates are for $3.71. President and COO Roger Farah blamed the lowered FY estimates on the need to take "a more conservative view of discretionary spending among U.S. consumers," (full earnings call transcript later today). Shares of RL are down 0.80% in pre-market trading (as of 8:18 AM ET).

Sources: Press release, Reuters, MarketWatch
Commentary: Baron Funds: Tiffany and Ralph Lauren Should Outperform • Look Who's Buying Polo Ralph Lauren • Too Early to Jump Back on Ralph Lauren's Horse
Stocks to watch: RL. Competitors: JNY, LIZ. ETFs: PEZ, PWJ
Earnings call transcript: Polo Ralph Lauren F1Q08 (Qtr End 6/30/07)

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