How Will Ralph Lauren Perform in Q4 And FY 2016?
Key Trends In The Quarter:
1) Foreign Currency Headwinds
- Ralph Lauren has been hit immensely by the strong Dollar.
- The company now expects a 400 bps negative impact on its Fiscal 2016 results and 150 bps negative impact on its Q4 revenue growth.
2) Inventory Clearance And Lower Tourist Traffic
- Ralph Lauren committed to taking proactive action to clear end of season inventories.
- The fall and holiday season built-up inventory is to be cleared to start the spring selling holiday season in a strong position.
- Lower foreign tourist traffic, particularly from China, will also have a negative impact on the results.
3) Financial Outlook Adjusted Downwards
- During the Q3 2016 results presentation, the company revised its outlook downwards.
- Growth in consolidated net revenues was reduced from flat on a reported basis to a decline of 3%, and from 3-5% growth in constant currency to 1%.
- Due to negative foreign currency effects, the operating margin is expected to be lower by 290-320 bps, as compared to an earlier expected figure of a 180-230 bps decline.
Have more questions on Ralph Lauren? See the links below:
- Why Have Ralph Lauren’s Licensing Revenues Been Declining In Recent Years?
- How Have The Number Of Ralph Lauren Stores Operated By The Company Changed Over The Past Five Years?
- Why Is The Online Market Place The Next Big Thing For Ralph Lauren?
- How Has Ralph Lauren Performed In Comparison To Its Peers?
- How Has Ralph Lauren’s Sales Breakdown According To Geographic Locations Changed Over The Past Five Years?
- How Will Ralph Lauren’s Retail Division Perform In The Next Five Years?
- How Did Just The Month Of February Make Ralph Lauren One Of The Worst Performing Companies, Amongst Its Peers?
- Why Did We Revise Our Price Estimate Of Ralph Lauren To $102?
- How Will Ralph Lauren’s Revenue And EBITDA Composition Change In The Next 3 Years?
- How Has Ralph Lauren’s Revenue And EBITDA Composition Changed In The Last 5 Years?
- By What Percentage Did Ralph Lauren’s Revenue & EBITDA Grow In The Last 5 Years?
- What Is Ralph Lauren’s Fundamental Value Based On Expected 2016 Results?
- What Is Ralph Lauren’s Revenue And EBITDA Breakdown?
- Ralph Lauren: Year 2015 In Review
- What To Expect From Ralph Lauren’s Fiscal Q2 After Stock Up 9% This Year?
- What’s Next For Ralph Lauren Stock?
- Will Ralph Lauren Stock Trade Lower Post Fiscal Q3?
- Ralph Lauren Q2 Preview: What Are We Watching?
- Ralph Lauren Stock To Trade Lower After FY Q4 Results?
- Ralph Lauren Stock Slumped 14% In Last Ten Days, What’s Next?
Notes:
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
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