This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ralph Lauren Reports Better-Than-Expected First Quarter Fiscal 2014 Results

The Company had $66 million in capital expenditures in the first quarter of Fiscal 2014, compared to $62 million in the prior year period. Free cash flow, which is defined as net cash provided by operating activities less capital expenditures, increased 11% to $229 million. The Company repurchased approximately 0.9 million shares of Class A Common Stock during the first quarter at an average cost of $175.64 per share, utilizing $150 million of its authorized share repurchase programs. Approximately $427 million remained available under the Company’s authorized share repurchase programs at the end of the quarter.

Global Retail Store Network

The Company ended the first quarter of Fiscal 2014 with 396 directly operated stores, comprised of 123 Ralph Lauren stores, 59 Club Monaco stores and 214 Polo factory stores. The Company also operated 505 concession shop locations worldwide at the end of the first quarter. In addition to Company-operated locations, international licensing partners operated 69 Ralph Lauren stores and 33 dedicated shops, as well as 89 Club Monaco stores and shops at the end of the first quarter.

Fiscal 2014 Outlook

The Company continues to expect 4%-7% growth in consolidated net revenues for Fiscal 2014, including a 150 basis point net negative impact from foreign currency translation and an additional 100 basis point headwind from discontinued businesses. Operating margin for Fiscal 2014 is still expected to be 25-75 basis points below the prior year’s record level due to the integration of certain formerly licensed merchandise categories and geographic regions to directly controlled operations, accelerated investment in the Company’s long-term growth initiatives and unfavorable foreign currency effects. The full year Fiscal 2014 tax rate is estimated at 31%.

In the second quarter of Fiscal 2014, the Company expects consolidated net revenues to increase by a low-single-digit percentage, including a 200 basis point net negative impact from foreign currency translation and discontinued businesses. Retail sales are expected to grow at a mid-single digit rate while wholesale revenues are expected to be flat to the prior year period as a result of the timing of certain seasonal shipments and a planned conversion from legacy systems to SAP. Operating margin for the second quarter of Fiscal 2014 is expected to be approximately 300-350 basis points below the comparable prior year period due to the integration of newly assumed operations, the timing of investments to support the Company’s strategic growth objectives and unfavorable foreign currency effects. The second quarter tax rate is estimated at 31.5%.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs