Ralph Lauren report due Wednesday

Ralph Lauren will report its first-quarter figures for the 2015 financial year on Wednesday 6 August. The consensus is for earnings per share of $1.757 and revenue of $1.725 billion.

Ralph Lauren store
Source: Bloomberg

Ralph Lauren is trading at $156.28. The stock is up 2.75% since it announced its fourth-quarter earnings for 2014 in May, in which the EPS and revenues exceeded analysts’ estimates. May’s reported figures also included a warning that store expansion would reduce profit margins until March 2015. The company plans to spend between $400-$500 million on capital expenditure.

While the share price initially declined on the back of the capital expansion plans, it quickly recouped its losses. The fiscal year for 2014 was another record year for Ralph Lauren in terms of revenue and profits. President, and chief operating officer, Jackwyn Nemerov attributed the record year to investments made previously.

Equity analysts are bullish on the stock. Out of the 24 reports, 14 are buy ratings and the remaining ten are holds. Traders are already prepared for declining profit margins in the next six to nine months. The $150 level is acting as support and good figures could put the stock on a path to $161.57.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.