Research Desk Line-up: PVH Corp. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ralph Lauren Corp. (NYSE: RL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RL, following the Company's release of its financial results on August 08, 2017, for the first quarter fiscal 2018. The Company's adjusted operating income increased 7.5% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Textile - Apparel Clothing industry. Pro-TD has currently selected PVH Corp. (NYSE: PVH) for due-diligence and potential coverage as the Company reported on August 23, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on PVH Corp. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RL; also brushing on PVH. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=RL

http://protraderdaily.com/optin/?symbol=PVH

Earnings Reviewed

For three months ended July 01, 2017, Ralph Lauren's revenue decreased 12.9% to $1.35 billion from $1.55 billion in Q1 FY17. The revenue was almost at par with analysts' expectations of $1.35 billion.

During Q1 FY18, Ralph Lauren's gross profit decreased 4.9% to $851.2 million from $894.6 million in Q1 FY17. For the reported quarter, the Company's adjusted gross margin increased 540 basis points to 63.1% of revenue from 57.7% of revenue in Q1 FY17.

For the reported quarter, the Company's selling, general, and administrative expenses (SG&A) decreased 13% to $708.4 million from $814.7 million in Q1 FY17.

During Q1 FY18, Ralph Lauren's operating income was $90.3 million compared to operating loss of $31.2 million in the same quarter last year. For the reported quarter, the Company's adjusted operating income increased 7.5% to $137.5 million from $127.9 million in Q1 FY17. During Q1 FY18, the Company's adjusted operating margin increased 200 basis points to 10.2% of revenue from 8.2% of revenue in Q1 FY17.

For the reported quarter, the Company's effective tax rate was 31.4% compared to 32.8% in Q1 FY17. During Q1 FY18, Ralph Lauren's adjusted effective tax rate was 32% compared to 28.9% in the same period last year.

During Q1 FY18, Ralph Lauren's net income was $59.5 million compared to net loss of $22.3 million in Q1 FY17. For the reported quarter, the Company's adjusted net income increased 1.8% to $91.1 million on a y-o-y basis from $89.5 million in Q1 FY17. For the reported quarter, the Company's diluted EPS was positive $0.72 compared to negative $0.27 in Q1 FY17. During Q1 FY18, Ralph Lauren's adjusted diluted EPS increased 4.7% to $1.11on a y-o-y basis from $1.06 in Q1 FY17. The adjusted diluted EPS surpassed analysts' expectations of $0.96.

Store Update

During Q1 FY18, the Company's directly operated stores were 467 compared to 485 in Q1 FY17. For the reported quarter, Ralph Lauren's total licensed stores were 164 compared to 156 in Q1 FY17.

Ralph Lauren's Segment Details

North America - During Q1 FY18, North America segment's revenue decreased 17.1% to $709.7 million on a y-o-y basis, or 16.9% on constant currency basis, from $855.6 million in Q1 FY17. For the reported quarter, the segment's operating income decreased 9.2% to $150.5 million from $165.8 million in Q1 FY17. For the reported quarter, the segment's adjusted operating margin increased 110 basis points to 21.4% of revenue from 20.3% of revenue in Q1 FY17.

Europe -During Q1 FY18, Europe segment's revenue decreased 14.3% to $323.5 million on a y-o-y basis, or 10.2% on constant currency basis, from $377.6 million in Q1 FY17. For the reported quarter, the segment's operating income decreased 10.5% to $67.1 million from $75 million in Q1 FY17. For the reported quarter, the segment's adjusted operating margin decreased 120 basis points to 21.1% of revenue from 22.3% of revenue in Q1 FY17.

Asia - During Q1 FY18, Asia segment's revenue decreased 1% to $209.1 million on a y-o-y basis, or increased 0.5% on a constant currency basis, from $211.1 million in Q1 FY17. For the reported quarter, the segment's operating income was $30.2 million compared to operating loss of $37.8 million in Q1 FY17. For the reported quarter, the segment's adjusted operating margin increased 740 basis points to 14.5% of revenue on a y-o-y basis from 7.1% of revenue in Q1 FY17.

Balance Sheet

As on July 01, 2017, Ralph Lauren's cash and cash equivalents increased 81.6% to $830.4 million from $457.3 million in Q1 FY17. During Q1 FY18, Ralph Lauren's inventories decreased 30.6% to $859.9 million from $1.24 billion in Q1 FY17. For the reported quarter, Ralph Lauren's accounts payable decreased 16% to $160.9 million from $191.5 million in Q1 FY17.

During Q1 FY18, the Company's long-term debt decreased 1.9% to $590.4 million from $602.0 million in Q1 FY17. For the reported quarter, Ralph Lauren's cash provided by operating activities was $334.2 million compared to $242.9 million in Q1 FY17.

Outlook

For FY18, Ralph Lauren expects revenue growth to be negative 8%-9%, excluding foreign currency impact and projects operating margin to be in the range of 9%-10.5%, excluding foreign exchange impact.

The Company estimates capital expenditure to be $300 million for fiscal 2018.

Stock Performance

On Monday, August 28, 2017, the stock closed the trading session at $87.23, slightly up 0.03% from its previous closing price of $87.20. A total volume of 847.19 thousand shares have exchanged hands. Ralph Lauren's stock price soared 15.94% in the last one month, 29.54% in the past three months, and 9.96% in the previous six months. The stock has a dividend yield of 2.29% and currently has a market cap of $6.99 billion.

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SOURCE: Pro-Trader Daily