The new CEO, Stefan Larson, at RL just made himself look retarded by blaming poor earnings on everything but the fact that he’s a giant ape and doesn’t know what he’s doing yet. Just last quarter investors were encouraged to see olde Ralph get the fuck out of the stores, him and that stupid double breasted blue blazer with gold buttons. But with numbers like these, we might as well bring Mr. Powdered white wig back to drive RL into the ground for good.
Reports Q3 (Dec) earnings of $2.27 per share, excluding non-recurring items, $0.16 better than the Capital IQ Consensus of $2.11; revenues fell 4.3% year/year to $1.95 bln vs the $2.03 bln Capital IQ Consensus; -1% ex-FX.
This was below the guidance provided in November of 0-2% reported revenue growth. While international net revenue grew 6% in constant currency in the third quarter, North America revenue declined 4% primarily due to above-average temperatures for most of the Fall and Holiday period, a decline in foreign tourist traffic and product assortment challenges in the Lauren brand. The decline in reported net revenues included ~300 basis points of negative impact from FX.
Co issues downside guidance for Q4, sees Q4 revs of flat to -2% to ~$1.85-1.95 bln vs. $1.96 bln Capital IQ Consensus.
Operating margin for the fourth quarter of Fiscal 2016 is expected to be ~400-450 basis points below the comparable prior year period, primarily due to proactive action the Company is taking to clear end-of-season inventories related to the sales challenges the Company faced in the third quarter, as well as infrastructure investments and negative foreign exchange impacts.
Co expects consolidated net revenues for Fiscal 2016 to be up ~1% in constant currency and down ~3% on a reported basis. This compares to previous guidance of flat on a reported basis and up 3-5% in constant currency. Adj. operating margin for Fiscal 2016 is now expected to be down 290-320 basis points (from down 180-230 bps).
This stock, potentionally, has a long ways lower–because of FX headwinds, crappy tourists and poor assortment of clothes of course.
Stock was up 15% in last two weeks. Somebody figured out a way to dump shares to suckers before earnings.