Ralph Lauren Shares Rise on Higher 2Q Results, Same Revenue Outlook
November 07 2019 - 10:27AM
Dow Jones News
By Dave Sebastian
Shares of Ralph Lauren Corp. (RL) rose 11%, to $112, after it
reported higher second-quarter results and maintained its full-year
revenue guidance for fiscal 2020 as it faces business disruptions
in Hong Kong and the impact of U.S. tariffs on Chinese goods.
For the fiscal year, the fashion company expects revenue to grow
2% to 3% on a constant-currency basis, though it sees the growth
being on the range's low end amid protests in Hong Kong. It sees
foreign-currency fluctuations to weigh on revenue growth by about
1.3 percentage points.
The company said it continues to see operating margin to
increase 0.4 to 0.6 percentage points in constant currency. The
guidance includes the impact of List 4 U.S. tariffs on Chinese
imports, and foreign currency is expected to weigh on operating
margin by about 0.2 percentage points, Ralph Lauren said.
For the third quarter, the company said it expects revenue to be
flat compared with the year-earlier period, and for foreign
currency to pressure revenue growth by about 0.7 to 0.9 percentage
points.
Third-quarter operating margin could be flat to down about 0.2
percentage points, the company said, and foreign currency is
expected to have little impact on operating margin during the
quarter.
Ralph Lauren backed its 2020 tax-rate guidance of about 22%, and
it sees third-quarter tax rate of about 21%.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
November 07, 2019 10:12 ET (15:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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