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Polo Ralph Lauren beats by $0.20, misses on revs; guides Q3 net revs below consensus; lowers FY15 rev on FX
Reports Q2 (Sep) earnings of $2.25 per share, $0.20 better than the Capital IQ Consensus Estimate of $2.05; revenues rose 4.1% year/year to $1.99 bln vs the $2.02 bln consensus.
Co issues downside guidance for Q3, sees Q3 revs of +3-5% to ~$2.08-2.12 bln vs. $2.18 bln Capital IQ Consensus. Operating margin for the third quarter of Fiscal 2015 is expected to be approximately 100-150 basis points below the comparable prior year period due to higher cost of goods and incremental investments in the Company's strategic growth objectives. The third quarter tax rate is estimated at 30%.
Co issues downside guidance for FY15, sees FY15 revs of +5-7% to ~$7.59-7.73 bln vs. $7.94 bln Capital IQ Consensus. The Company is maintaining its constant dollar outlook for Fiscal 2015. However, as a result of recent, unfavorable foreign currency movements, the Company now expects consolidated net revenues for Fiscal 2015 to increase by 5%-7% compared to its previous outlook of 6%-8% growth. The Fiscal 2015 operating margin is still estimated to be ~75-125 basis points below Fiscal 2014's level, likely at the mid-to-low end of that range due to incrementally negative foreign currency movements. The full year Fiscal 2015 tax rate is estimated at 30%including a 200 basis point net negative impact from foreign currency translation.
Co issues downside guidance for Q3, sees Q3 revs of +3-5% to ~$2.08-2.12 bln vs. $2.18 bln Capital IQ Consensus. Operating margin for the third quarter of Fiscal 2015 is expected to be approximately 100-150 basis points below the comparable prior year period due to higher cost of goods and incremental investments in the Company's strategic growth objectives. The third quarter tax rate is estimated at 30%.
Co issues downside guidance for FY15, sees FY15 revs of +5-7% to ~$7.59-7.73 bln vs. $7.94 bln Capital IQ Consensus. The Company is maintaining its constant dollar outlook for Fiscal 2015. However, as a result of recent, unfavorable foreign currency movements, the Company now expects consolidated net revenues for Fiscal 2015 to increase by 5%-7% compared to its previous outlook of 6%-8% growth. The Fiscal 2015 operating margin is still estimated to be ~75-125 basis points below Fiscal 2014's level, likely at the mid-to-low end of that range due to incrementally negative foreign currency movements. The full year Fiscal 2015 tax rate is estimated at 30%including a 200 basis point net negative impact from foreign currency translation.