--> RL +3% pre open, still time to go long on this one
Polo Ralph Lauren beats by $0.10, reports revs in-line; reaffirms FY16 guidance; Q1 comps -2% in constant currency
Reports Q1 (Jun) adj earnings of $1.09 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.99; revenues fell 5.3% year/year to $1.62 bln vs the $1.61 bln consensus. Consolidated comparable store sales decreased 2% on a constant currency basis during the first quarter and declined 8% on a reported basis.
- In Q2, co expects consolidated net revenues to be up 3-5% in constant currency, and based on current exchange rates, foreign currency will have an approximate 550 basis point negative impact on revenue growth. The Company continues to expect consolidated net revenues for Fiscal 2016 to increase by mid-single digits in constant currency.
- Based on current exchange rates, foreign currency will have an approximate 450 basis point negative impact on Fiscal 2016 revenue growth. Operating margin for Fiscal 2016 is still expected to be 180-230 basis points below the prior year's level due to negative foreign currency effects. The full year Fiscal 2016 tax rate is estimated at 30%.