Ralph Lauren (NYSE:RL) Issues Earnings Results, Beats Estimates By $0.13 EPS

Ralph Lauren (NYSE:RL – Get Rating) issued its quarterly earnings data on Tuesday. The textile maker reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.13, MarketWatch Earnings reports. Ralph Lauren had a return on equity of 22.59% and a net margin of 8.38%. The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the prior year, the business earned $0.38 EPS. The firm’s revenue was up 18.7% on a year-over-year basis. Ralph Lauren updated its FY 2023 guidance to EPS and its Q1 2023 guidance to EPS.

Ralph Lauren stock opened at $91.14 on Wednesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.88 and a quick ratio of 1.50. The company has a market capitalization of $6.49 billion, a PE ratio of 13.66 and a beta of 1.38. Ralph Lauren has a one year low of $86.55 and a one year high of $135.99. The business has a 50 day simple moving average of $107.22 and a 200 day simple moving average of $114.72.

The business also recently announced a quarterly dividend, which will be paid on Friday, July 15th. Investors of record on Friday, July 1st will be given a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 3.29%. This is an increase from Ralph Lauren’s previous quarterly dividend of $0.69. Ralph Lauren’s dividend payout ratio (DPR) is 41.23%.

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Ralph Lauren by 0.8% during the 1st quarter. Vanguard Group Inc. now owns 4,927,941 shares of the textile maker’s stock valued at $559,026,000 after purchasing an additional 37,574 shares in the last quarter. BlackRock Inc. increased its stake in shares of Ralph Lauren by 4.8% in the 4th quarter. BlackRock Inc. now owns 4,688,097 shares of the textile maker’s stock valued at $557,228,000 after buying an additional 216,590 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Ralph Lauren by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 676,435 shares of the textile maker’s stock valued at $76,748,000 after buying an additional 5,184 shares during the period. Northern Trust Corp increased its stake in shares of Ralph Lauren by 14.9% in the 1st quarter. Northern Trust Corp now owns 445,055 shares of the textile maker’s stock valued at $50,487,000 after buying an additional 57,839 shares during the period. Finally, Fuller & Thaler Asset Management Inc. acquired a new stake in shares of Ralph Lauren in the 1st quarter valued at $40,466,000. 99.89% of the stock is owned by hedge funds and other institutional investors.

Several analysts have recently weighed in on RL shares. Zacks Investment Research lowered Ralph Lauren from a “strong-buy” rating to a “hold” rating and set a $115.00 price objective for the company. in a report on Thursday, March 10th. Wells Fargo & Company lowered Ralph Lauren from an “overweight” rating to an “equal weight” rating and cut their price objective for the company from $135.00 to $110.00 in a report on Tuesday, April 5th. Credit Suisse Group cut their price objective on Ralph Lauren from $165.00 to $130.00 and set an “outperform” rating for the company in a report on Wednesday, May 18th. Deutsche Bank Aktiengesellschaft cut their price objective on Ralph Lauren from $116.00 to $101.00 in a report on Wednesday. Finally, Citigroup downgraded Ralph Lauren from a “buy” rating to a “neutral” rating and reduced their target price for the company from $140.00 to $98.00 in a report on Monday. One analyst has rated the stock with a sell rating, six have issued a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, Ralph Lauren presently has a consensus rating of “Hold” and an average target price of $129.31.

Ralph Lauren declared that its board has approved a stock buyback program on Thursday, February 3rd that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the textile maker to reacquire up to 17.3% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Ralph Lauren Company Profile (Get Rating)

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 and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, umbrellas, and belts, 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, lighting, tabletop, floor coverings, and giftware; and fragrances.

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