Earnings Preview: Polo Ralph Lauren Corp.

Polo Ralph Lauren Corporation (RL) is expected to report Q1 earnings before market open Wednesay, Aug. 6, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for a profit of 72c on revenue of $1.12B. The consensus range is 67c to 76c for EPS, and revenue of $1.08B to $1.15B, according to First Call. In May, the company forecast FY09 EPS $3.95 to $4.05 vs. First Call consensus of $3.98. For Q1, the company said it expects consolidated revenues to grow at a low to mid single-digit rate.

Analyst Views

In June, Morgan Keegan upgraded shares to Market Perform from Underperform. While the firm doesn't find valuation overly attractive, it believes minimal risk exists to Q1 guidance. The firm is not convinced the long-term outlook is as "rosy as many believe," but conceded that a "powerful bull case can be spun" if the company delivers Q1 upside. The argument can be made, the firm said, that Polo Ralph Lauren has a history of guiding conservatively, beating quarters early in the year, maintaining fiscal year guidance, and then flowing through the upside later in the year.